FAMILY BUSINESSES CHALLENGES
Small Enterprise|September 2020
All businesses face challenges, whether it is dealing with the changing economy, finding and hiring the right employees, or increased competition in the market. Family-owned businesses are not immune to these challenges. In fact, there is also a unique set of challenges that family-owned businesses have to face as a result of the nature of their business structure. It is important to understand what these hurdles are so that if you find yourself facing these issues, you can not only identify them, but you can proactively develop ways to overcome them.
Dr N. Krishnan
FAMILY BUSINESSES CHALLENGES

Let’s take a look at ten of the most common challenges facing family businesses today in the MSME Segment in India.

Family problems. Physical, emotional and financial problems among family members can greatly impact the day-to-day operation of the business.

Informal culture and structure. For many businesses, having a laid-back culture is a positive. However, the informal structure and culture found in many family businesses can equate to a lack of documentation, policies, and defined strategy and goals.

Pressure to hire family members. It can be difficult to resist the pressure that comes along with requests from family members who want to join the business. This becomes especially complicated if they lack the basic skills and experience needed for the position.

Lack of training. The informal culture found in many family businesses can result in a lax approach to training new employees, whether they are family members or not.

High turnover of non-family employees. Non-family employees may feel that greater opportunities exist within the business for those who are a part of the family and may grow tired of the culture.

Sources for growth. A huge challenge for family businesses can be determining where and how to get the capital and resources needed to grow the business.

Lack of an external view. While family members may not always have the same opinions, they often have similar upbringing and life experiences which may lead to a uniform view of the business. Businesses need to have external views of their company and their competition in order to thrive.

Diese Geschichte stammt aus der September 2020-Ausgabe von Small Enterprise.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der September 2020-Ausgabe von Small Enterprise.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS SMALL ENTERPRISEAlle anzeigen
Small Enterprise

Job Creation: Startups Starting Up!

Do startups create jobs? This could unarguably be one of the most sought after questions in recent times. While it is out and clear that startups make way for employment opportunities, the discussion boils down to the importance of startups in creating jobs. The startup ecosystem indeed plays a major role in job creation and is touted as an economic panacea.

time-read
2 Minuten  |
November 2021
Small Enterprise

Importance Of Technology For SMEs

We, humans, by nature, tend to be lazy. We always try to make tools, machines, gadgets, etc., to save us time and energy and give us satisfactory results. Technology is the charisma that kept changing our way of living and our style of doing things drastically. Our way of conducting business is also not spared by the Tsunami of technology.

time-read
5 Minuten  |
November 2021
Small Enterprise

Importance Of Digital Economy

Economic activities that result from billions of interactions between individuals, businesses, data, devices, and processes constitute a digital economy and India is well on its path to becoming a digitally advanced economy. Driven by cheap data cost, faster connectivity, and affordable smartphones, India had over 1,160 million internet subscribers in February 2020, as per the Telecom Regulatory authority of India (TRAI), second only to China.

time-read
2 Minuten  |
November 2021
Small Enterprise

India's Economic Growth – Can The Startups Redefine?

Recent years showed a considerable rise in the startups of India. During globalization, MNCs or Multi-National Companies had a massive role in India’s economic growth. Now, it seems that startups are revolutionizing the Indian economy. These startups are amplifying the revenue generation and enriching the GDP.

time-read
5 Minuten  |
November 2021
Small Enterprise

ENTREPRENEURSHIP EDUCATION FOR BUDDING MINDS

In the present economic situation, having knowledge of an academic subject is no longer sufficient for a new graduate. Students are increasingly required to have skills and abilities which will increase their employability, such as: the retrieval and handling of information; communication and presentation; planning and problem solving; and social development and interaction.

time-read
4 Minuten  |
November 2021
Small Enterprise

CHALLENGES OF ENTREPRENEURSHIP DEVELOPMENT IN INDIA

The Economic survey in 2019-20 using World Bank’s data on entrepreneurship stated that India ranks third in the number of new firms created. However, India ranks significantly lower in terms of intensity when compared with countries like UK and US.

time-read
2 Minuten  |
November 2021
Small Enterprise

HOW INNOVATION PLAYS AN IMPORTANT ROLE IN THE PERFORMANCE OF SMEs? WHAT ARE SOME INNOVATION FACTORS TO FOLLOW?

Innovation in a business must respect the business strategy in terms of the SME's long-term missions, visions, and goals and is systematic implementation procedures and changes to improve the products and services your company offers. The innovation implementation ensures an appropriate response in terms of increased sales and enhanced customer satisfaction. The image strengthening of your firm will lead to better customer relations with your company and at the same time provide financial stability for the company.

time-read
4 Minuten  |
November 2021
Small Enterprise

ECONOMIC REFORMS THAT CAN CHANGE THE ENTREPRENEURIAL ECOSYSTEM

The year 2021 marked 30 years since economic liberalisation surfaced in India and writing on this occasion, the richest man of India; Mukesh Ambani said that bold economic reforms such as ending the license –quota raj, liberalisation of trade and industrial policies, freeing up capital markets and financial sector helped our GDP grow ten folds since 1991 and India transformed from an economy of scarcity in 1991 to an economy of sufficiency in 2021.

time-read
2 Minuten  |
November 2021
Small Enterprise

ROLE OF WOMEN ENTREPRENEURS IN INDIA – THEN AND NOW

As per the 2019-20 annual report of the MSME ministry, among 63.3 million MSMEs that India has, women–owned 20.4% of them up from 13.72 % in 2013-14. This data supports the fact that there has been growing acceptance of women in entrepreneurial roles but it hasn’t always been the case.

time-read
3 Minuten  |
November 2021
Small Enterprise

TECHNOLOGY AN ENABLER FOR SMALL BUSINESSES

Today times are such that firms operate in a dynamic environment and they must act dynamically too, at least firms should keep an eye on obsolete processes and technologies and replace them with updated versions to stay competitively ahead.

time-read
3 Minuten  |
November 2021