The Importance of Managing a Family Business

Are you ready to take the wheel?
On the 10th and 11th of March, 2018, aspiring and emerging entrepreneurs had the opportunity to network and collaborate. As the best and brightest minds gathered to brainstorm ways to fuel their company’s growth, It is the most critical aspect of any company. The conference brought together the best breed of entrepreneurs, innovators, venture capitalists, business model builders, consultants, policy-makers, academicians, and business practitioners to present and address creativity and progress under the aegis of entrepreneurship for Small and Medium Businesses at IIT Mumbai.To get more about the page

Over the last decade or so, I’ve been torn between entering family businesses and pursuing higher education. The pendulum has tipped in favour of entrepreneurship and working with family-owned companies.
Let’s take a look at how it all started and why it’s so important:
The Beginning
Family-owned companies now account for two-thirds of all businesses worldwide, generating the majority of global economic growth, jobs, and income. Family businesses rule the economy in many parts of the world. According to The Economist, “family-controlled businesses now account for 19 percent of Fortune Global 500 companies.” In India alone, 67 percent of companies are owned and operated by family members. According to McKinsey, by 2025, there will be more than 15,000 companies in the world with annual sales of at least $1 billion, with emerging-market family businesses accounting for 37 percent of those.
The requirement
If you are in a stable family business or a business that is facing difficulties and trying to make a transition, Family Business Management Programs are essential.
A thriving family business:
Families who run profitable family companies are aware of significant changes in their industry. Simply put, prosperous families are entrepreneurial. Families often prosper because they invest in productive activities, place a premium on asset growth, and spend only a small portion of their wealth. These families have a tradition that inspires members of the family to make something that will last. It’s no surprise that these families help business owners. Furthermore, effective families maintain a reasonable level of unity, with supportive members remaining committed to one another and the family’s mission. As families grow more diverse over generations, it is possible that only a few relatives per generation will work directly in the sector.

Members of the family who are not involved in the company can still support family philanthropic projects or social events, and this degree of participation is often enough to keep the family together. Investing in family entrepreneurs, on the other hand, will keep talented members of the family contributing to the family’s wealth and mission. Investing in family entrepreneurs must be done critically and equally within the family, based on the viability of their business plans. Even if certain entrepreneurial ventures fail, these investments will assist you in identifying talent to keep your company expanding. You’re also sending a powerful message: this family is dedicated to adding value.
Family enterprises are confronted with difficulties.
Although family businesses perform better on average than other forms of businesses, they face unique challenges that must be addressed. The family business is often suffocated by this restriction.
This necessitates the creation of a Family Business Management course that teaches students how to capitalise on the strengths, navigate the obstacles, and avoid the flaws of the businesses and the families that own them.