Impact of Entrepreneurial Education on the Sustainability of Family-Owned Businesses
Family businesses differ from non-family businesses in a number of ways, and because they are so significant to the global economy, more research is necessary to determine the best ways to support their expansion and survival. Even though family businesses are common, they still need to actively participate in entrepreneurship education and training programs to remain competitive in the ever-changing business world. Studies reveal that any family business’ investment in entrepreneurship education promotes its growth and sustainability and helps to create a more orderly succession process. It is also suggested that there is a generally favorable impression of corporate entrepreneurship education as supporting the sustainability of family enterprises. According to the prevailing theories, these businesses are quite likely to fail beyond the third generation since successors frequently lack professional skills and most recruiting decisions are made largely on relationships rather than competence.
When it comes to new training techniques, entrepreneurship education is particularly crucial for improving manager competencies. In contrast to other forms of management education, entrepreneurship training emphasizes on creativity, risk-taking, and futuristic thinking, all of which are necessary in the dynamically changing marketplace.
Depending on how much the founder’s personality permeates the business culture and what strategic needs must be satisfied to ensure these companies’ growth, family firms have their own unique set of positive and negative traits. Affectivity and paternalism are further traits that define management styles in family enterprises, where partnerships and links of trust between employers and employees foster chances for personal development and encouragement. Since emotional relationships serve as the foundation for decisions, relationship dynamics are vital to both strategic outcomes and functional organizational divisions. Additionally, these links are in charge of constructing prevailing paradigms, defining professional frontiers for individuals, and defining the growth horizon for businesses.
It’s inevitable for the family businesses to go through a certain set of generic challenges and problems such as succession, training etc. Hence there are six essential qualities that existing family company executives expect from their next-generation leaders. Integrity, dedication, the capacity to earn the respect of coworkers who are not family, the capacity for making decisions, experiences, interpersonal abilities, intelligence, and self-assurance are a few of these. Similarly, mentoring connections have been shown to expand social networks, knowledge, abilities, and self-confidence. It can be anticipated that family business executives can gain from mentoring connections because the demands of next-generation leaders and the results of mentoring are similar. Inter-organizational mentoring appears to be more effective in achieving leadership development (career centered) outcomes, according to research on mentoring in family businesses. Mentoring within the organization may be more successful at transmitting organizational culture and values.
Receiving professional coaching can be a way to equip the successor of a family business and get them ready to face any future obstacles. The suggested option can be a coach if the family business is unable to handle problems, manage the firm efficiently from both a professional and personal perspective, and there is a need to improve executive and personal abilities. When a family business needs a more long-term experienced person who comprehends the industry and can offer assistance with talks, questioning without prescribing what the family business should do, or offering ideas, a business mentor is required.
Mentoring in family businesses magnifies the impact and learning scheme of the approach as The mentee has the chance to get medium- or long-term professional and personal support through an effective enterprise mentoring relationship. At MIDAS we strongly believe in developing a mentoring relationship with budding entrepreneurs. This mentoring relationship gives the mentee the chance to examine their personal and professional circumstances and come up with plans and objectives that will benefit their company enterprise. And therefore mentoring and entrepreneurial education, like that offered at MIDAS School of Entrepreneurship not only provides an edge to a family business but also prepares individuals for changes in entrepreneurial intentions and overall challenge assessment and solving capabilities which are extremely crucial to support any sort of family business or startup.
Comments are closed.