Title:
\nEntrepreneur Performance Towards Family Businesses
\nSubtitle:
\n1. Understanding of Entrepreneurship Performances \/Approaches
\n2. Understanding of Family Businesses
\nAuthors:
\n Samruddhi Ajay Raul.
\nAbstract:
\n In recent years, research on the family role and entrepreneurship has increased
\nnoticeably, consolidating itself as a valid and current subject of study. This paper presents
\na systematic analysis of academic research, applying bibliometric indicators, and cluster
\nanalysis, which define the state of research about the relationship between family role
\nand entrepreneurship. For this purpose, using three well-accepted databases among the
\nresearch community: Scopus, Web of Science, Business Source, a total of 92 articles were
\nselected and analyzed, published between 1989 and 2019 (until March).
\nA cluster analysis shows five main areas of literature development:
\n(1) cultural dimension and gender issue;
\n(2) family business and succession;
\n(3) parental role models and entrepreneurial intentions;
\n(4) entrepreneurship and self-employment;
\n(5) family support and women entrepreneurs.
\nFindings also show how this is a relatively recent field of study, with a multidisciplinary
\ncharacter.
\nIntroduction:
\n Family businesses are important, not only from a financial point of view, but also
\nbecause provide long-term stability in the labor market because of the responsibility they
\nshow to communities, since they convey values and knowledge. Entrepreneurship is a
\ndetermining factor of economic development, social and structural change.
\nEntrepreneurship not only contributes to the economic and social growth of a nation, but
\nalso stimulates the development of knowledge, technological change, competitiveness
\nand innovation. In fact, the European community has promoted numerous actions aimed
\nto improve and develop the entrepreneurial attitude of European citizens toward
\nBusiness venture, focusing on aspects that are essential for creating a corporate identity.
\nHowever, the levels of entrepreneurial activity in some European countries are still low.
\nAccording to the latest international study of Global Entrepreneurship Monitor published
\nEntrepreneur Performance Towards Family Businesses
\nin 2018, Europe has the lowest TEA (Total Entrepreneurial Activity) of all regions in all age
\nstudied. This is a concerning result, especially in its current crisis period.
\nLiterature Review:
\n To many, the phrase \u201cfamily business\u201d connotes a small or midsized company with a
\nlocal focus and a familiar set of problems, such as squabbles over succession. While
\nplenty of mom-and-pop firms certainly fit that description, it doesn\u2019t reflect the powerful
\nrole that family-controlled enterprises play in the world economy.
\n Not only do they include sprawling corporations such as Walmart, Samsung, Tata
\nGroup, and Porsche, but they account for more than 30% of all companies with sales in
\nexcess of $1 billion, according to the Boston Consulting Group\u2019s analysis.
\nConventional wisdom holds that the unique ownership structure of family businesses
\ngives them a long-term orientation that traditional public firms often lack. But beyond
\nthat, little is known about exactly what makes family businesses different.
\n Some studies suggest that, on average, they outperform other businesses over the
\nlong term\u2014but other studies prove the opposite. To settle that question, we and Sophie
\nMignon, an associate researcher at the Center for Management and Economic Research
\nat \u00c9cole Polytechnique, compiled a list of 149 publicly traded, family-controlled
\nbusinesses with revenues of more than $1 billion.
\n They were based in the United States, Canada, France, Spain, Portugal, Italy, and
\nMexico. In each business a family owned a significant percentage, though not necessarily
\na majority, of the stock, and family members were actively involved both on the board
\nand in management. We then created a comparison group of companies from the same
\ncountries and sectors, which were similar in size but not family controlled. (We didn\u2019t look
\nat Asian companies because so many of them are family controlled that it\u2019s difficult to
\nfind a suitable comparison group.)
\n Then we did a rigorous analysis of the ways in which those two sets of companies
\nwere managed differently and how that affected performance. Our results show that
\nduring good economic times, family-run companies don\u2019t earn as much money as
\ncompanies with a more dispersed ownership structure. But when the economy slumps,
\nfamily firms far outshine their peers. And when we looked across business cycles from
\n1997 to 2009, we found that the average long-term financial performance was higher for
\nfamily businesses than for nonfamily businesses in every country we examined.
\nData Collection:
\n I am the person who spent approximately 23 years in a small town. In small towns,
\npeople are purchasing goods or taking services from the old family business. But when I
\nshifted to Mumbai for my further education, the things changed drastically. Because I
\ncan\u2019t trust any new shopkeeper for goods or any new firm for service due to the new
\natmosphere or surrounding. One day I thought if all the family business from my cities
\nswitch to the Entrepreneur Approaches and started the branches of their businesses or
\nservices in All over India or in the world then it will really make change. I know for the this
\nis thing which is easy to say but difficult to implement or apply in reality. So, we surveyed
\nEntrepreneur Performance Towards Family Businesses
\n100 family businesses from Nashik District using Google forms composed of the 5
\nquestions as follows:
\n1. If you have interest in the business then which business you’ll prefer?
\n2. If you joined a Family Business which is running by your family from three
\ngenerations. Then how can you put entrepreneurial approach in that business?
\n3. If you have family business and you noticed that your daughter or Daughter-inlaw has more capability and potential to raise the standard of your business than
\nyour son. In this case, would you like to train the person who is more capable or
\nyour son?
\n4. Do you think Entrepreneurial Approaches change the overall standards of your
\nfamily business?
\n5. Do you think Families are less supportive for entrepreneurial Approaches
\ntowards family business?
\nData Analysis:
\n1. If you have interest in the business then which business you’ll prefer?
\nThe participants of this survey who are interested in business 58.3% participants want to
\nfamily business and 41.7% want to start new business ventures.
\nEntrepreneur Performance Towards Family Businesses
\n2. If you joined a Family Business which is running by your family from three
\ngenerations. Then how can you put entrepreneurial approach in that business?
\nThe Entrepreneurial approaches recorded by participants are stating that 62.5%
\nwanted to revive their business by launching new product or upgrade themselves
\nby new technology and 20.8% wanted to renovate their shop as an entrepreneurial
\napproach. Remaining 16.7% includes by Giving franchises, hiring a famous as a
\nbrand ambassador, by asset liability balance or all the options they want to
\nimplement depends on conditions and current requirements for growth of the
\nbusiness.
\n3. If you have family business and you noticed that your daughter or Daughter-inlaw has more capability and potential to raise the standard of your business than
\nyour son. In this case, would you like to train the person who is more capable or
\nyour son?<\/p>\n
As, already mentioned in the abstract cultural dimension and gender issue and family
\nsupport and women entrepreneurs\u2019 area most important issues in family businesses.
\nEven it is visible in the above chart 29.2% participants want to give power of the business
\nEntrepreneur Performance Towards Family Businesses
\nto their son even if he doesn\u2019t have caliber to handle the business but 70.8% participants
\nwant to give power of business to their daughter or Daughter-in-law as she is more
\ncapable according to the question I asked.
\n4. Do you think Entrepreneurial Approaches change the overall standards of your
\nfamily business?
\nAs we can see through the pie-chart 95.8% participants are thinking entrepreneurial
\napproaches change the overall standards of your family business but only 4.2% are not
\nagree with this statement.
\n5. Do you think Families are less supportive for entrepreneurial Approaches
\ntowards family business?
\nAs the pie-chart stated that 66.7% of the participants are thinking families are less
\nsupportive towards entrepreneurial approaches towards family business but 33.3% are
\nthinking families aren\u2019t less supportive.
\nEntrepreneur Performance Towards Family Businesses
\nConclusion:
\n\u2022 The participants of this survey who are interested in business 58.3% participants
\nwant to family business and 41.7% want to start new business ventures. So, in this
\ncase we can say people are more interested towards the family business more
\nthan new startups.
\n\u2022 The Entrepreneurial approaches recorded by participants are stating that 62.5%
\nwanted to revive their business by launching new product or upgrade themselves
\nby new technology and 20.8% wanted to renovate their shop as an entrepreneurial
\napproach. Remaining 16.7% includes by Giving franchises, hiring a famous as a
\nbrand ambassador, by asset liability balance or all the options they want to
\nimplement depends on conditions and current requirements for growth of the
\nbusiness. By this we can say people interested in using new technology or
\nlaunching new products to grow their business than less interested in giving
\nfranchise or hiring a famous face as brand ambassador.
\n\u2022 It is visible in the above chart 29.2% participants want to give power of the
\nbusiness to their son even if he doesn\u2019t have caliber to handle the business but
\n70.8% participants want to give power of business to their daughter or Daughterin-law as she is more capable according to the question I asked. By the reference
\nof this data, we can say people are still gender issues or less supportive towards
\nwomen entrepreneurs.
\n\u2022 As we can see 95.8% participants are thinking entrepreneurial approaches change
\nthe overall standards of your family business but only 4.2% are not agree with this
\nstatement. The entrepreneurial approaches really increase the standards of your
\nbusiness according to the most of the participants.
\n\u2022 As we can see that 66.7% of the participants are thinking families are less
\nsupportive towards entrepreneurial approaches towards family business but
\n33.3% are thinking families aren\u2019t less supportive.
\nReferences:
\n\u2022 https:\/\/www.ncbi.nlm.nih.gov\/pmc\/articles\/PMC6967397\/#:~:text=Family%20busi
\nnesses%20are%20important%2C%20not,they%20convey%20values%20and%20k
\nnowledge.
\n\u2022 https:\/\/hbr.org\/2012\/11\/what-you-can-learn-from-family-business<\/p>\n","protected":false},"excerpt":{"rendered":"
Title: Entrepreneur Performance Towards Family Businesses Subtitle: 1. Understanding of Entrepreneurship Performances \/Approaches 2. Understanding of Family Businesses Authors: Samruddhi Ajay Raul. Abstract: In recent years, research on the family role and entrepreneurship has increased noticeably, consolidating itself as a valid and current subject of study. This paper presents a systematic analysis of academic research,… Continue reading Entrepreneur Performance Towards Family Businesses<\/span><\/a><\/p>\n","protected":false},"author":112027,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,41,9],"tags":[1728],"class_list":["post-17086","post","type-post","status-publish","format-standard","hentry","category-business","category-human-resource-management","category-management","tag-entrepreneureship","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/112027"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17086"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17086\/revisions"}],"predecessor-version":[{"id":17112,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17086\/revisions\/17112"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17086"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}