FAMILY AND NON FAMILY ENTREPRENEURS Family venture or enterprise is meant to refer to the business which is owned and

managed by the members of the family or by their successors. In other words, the enterprise which is developed on the basis of a persons creative power or professional efficiency and is managed by the member or members as successors after his death is known as family venture or business. A small or medium-sized business that is controlled and operated by members of a family is called family business. It may be organized as a sole proprietorship, partnership, corporation, or limited liability company. Features of Family Venture 1. Formation: The method of formation is very easy and simple. In order to develop such enterprises, no legal formalities are to be complied with. 2. Nature: i. family business by inheritance, and ii. joint family business. 3. Creation: These businesses have been formed with some objectives, viz., creation of the source of family income, ensuring the means of earning living for the members, etc. 4. Capital: The owner, Karta or the senior-most member of the family provides necessary capital for the business. 5. Ownership: Either a single individual or sometimes more than one enjoys the ownership right. 6. Management: Task of management is delegated on the senior-most member of the family 7. Stability: Inherited business lacks long stability. 8. Profit sharing: In case of inherited business, the owner-entrepreneur is entitled to the full share of profit or loss. 9. Extent of liability: The Karta or the entrepreneur has unlimited liability. But the liability of other members is limited up to the share of ownership. Advantages of Joint Family Business This type of business enjoys certain advantages which are as follows: It imparts training to younger ones. Family & non-family members are treated alike. Orientation given by old generation to new generation. Can overcome finance difficulties & had times by flowing back profits. It functions less in a bureaucratic manner. Personal in dealing in dealing with employees & customers Disadvantages of Joint Family Business A few drawbacks may be observed in this type of system. These are as follows: Role of family members are not clearly defined and therefore there may be confusing structure. There may be battle among members for succession. Younger generation may not be worthy of position. Finance may be drained by some selfish members. Challenges in Family Business 9. 10. 11. 12. 13. 14. 15. 16. 17. Paternalistic Overly Conservative Communication problems Systematic thinking Exit strategy Lack of Business valuation Growth Vision Control of operations 1. 2. 3. 4. 5. 6. 7. Emotions Informality Compensation Lack of talent High turnover of non-family members Succession planning Retirement and estate planning Training

8.

Improving Performance of Family Business David Sirmon and Michael Hitt examined the strategies behind successful family businesses. They found that success is tied directly to how well a company manages the five unique resources every family business possesses: 1. Human capital: skill sets of different family members are coordinated as a complementary cache of knowledge, with a clear division of labor. 2. Social capital: valuable social capital to the business in the form of networking and other external relationships. 3. Patient financial capital: The family relationship between the investors and the managers reduces the threat of liquidation. 4. Survivability capital: Capitalfamily members willingness to provide free labor or emergency loans so the venture doesnt fail. 5. Lower costs of governance: Elimination costs for things such as special accounting systems, security systems, policy manuals, legal documents and other mechanisms.

PROFESSIONALS Everyone wants to become a "professional" these days or to work in a professionally managed organization. While being professional may be a virtue, what exactly is implied by being a professional is often found lacking in individuals and companies. To be a professional, it implies that a person is good in his job and can be depended upon putting in his best effort. A professional or a company needs to be evaluated against the following yardsticks. A professional is a person who is paid to undertake a specialized set of tasks and to complete them for a fee. A professional therefore means: Highly educated person (or a company employing) engaged in challenging work providing considerable autonomy of working Highly competent and conscientious and Trustworthy following strict ethical and moral standards. Role of Professionals in Family Business 1. Stimulates new thinking and fresh strategic insights. 2. Attracts and retains excellent managers. 3. Creates a flexible, creative organization. 4. Creates and conserves capital. 5. Prepares successors for leadership. 6. Exploits the unique advantages of family ownership. Major need to professionals 1. Focusing on board-related issues only. 2. Failure to manage expectations. 3. Difficulties in driving the process. 4. Lacking skills to manage client resistance. 5. Lacking in various business needs. 6. Lagging in achievement. Challenges to Professionals Promotion of new identity and character What actions professionals take? What people care about? What we offer them? What breakdowns we resolve? social responsibility, user centered, avoiding responsibility Exchange of knowledge Developing certification criteria, codes of ethics, accreditation standards and disciplinary actions. Ensuring professional practice alongside conceptual principles Providing standards of professional competence at various levels Learning and connecting professionals with customers Importance of Professionals It is more in demand in medium to large scale organization Time is much important Only expert domain is required. Most competitive and intense environment. PROFESSIONALISM Professionalism is actually is the process given occupation become profession in the sense of attaining professional status. In other words its the expertness characteristic of a professional person. The level of excellence or competence that is expected of a professional. Elements of Professionalism Altruistic: Showing unselfish concern for the welfare of others Concern for others: without any expectation in return Accountability: towards whatever job is performed by him. Excellence: Knowledge, competency, skillful, communicative. Integrity: honesty, morality, values, undivided loyalty. Dutiful and Respectful: duty bound, comradeship, etiquettes, manners shown towards colleagues and others. Receptive: to new ideas, ready to experiment and take calculated risk PROFESSIOANLISM VS. FAMILY ENTREPRENEURS: 1. DEGREE OF OPEN MINDEDNESS: Professional are open minded, receptive to new ideas, ready to experiment. While family entrepreneurs generally lack this. 2. NEW PRACTICES: Include Quality certification, Participative Mgmt., Change in working style, financing pattern. Professional are always leaders in adopting them, experimenting with them. While there is lack of this attitude in family entrepreneurs 3. IMPARTIAL HRM: Professionals do not show partiality towards any particular gender. But family business houses employ their relative or friends or people belonging to same social caste in responsible position. 4. ORGANIZATION ORIENTED FINANCIAL MANAGEMENT: Professionals tend to make financial decision in the way which is best for the organization. But family entrepreneurial firms give first priority to their familiar concern & interests. 5. DECISION MAKING STYLE: The decision making process in professional run organization tends to be qualitative better & vision to be broader. It is mostly participative. While in family run businesses is more autocratic in nature. Here it is mostly owner entrepreneur himself or herself who makes the decision sometimes with the help of his family members or friends.

WOMAN ENTREPRENEUR Woman Entrepreneur is a woman or group of women who initiate, organize & operate a business enterprise. According to Marshal, any woman or group of woman who innovates, initiates, or adopts an economic activity may be called a woman entrepreneur According to Government of India, it is an enterprise owned & controlled by woman or a woman having a minimum financial interest of 51% of the capital in the enterprise. It is estimated that presently women entrepreneurs comprise about 10% of the total entrepreneurs in India. It is also clear that this percentage is growing every year. India has the worlds largest number of professionally qualified women. India has more female doctors, surgeons, scientists and professors than the United States. India has more working women than any other country in the world. This includes female workers at all levels of skill from the surgeon and the airline pilot to bus conductors and menial laborers. Why do Women Take-up Employment Push Factors Death of bread winner Sudden fall in family income Permanent inadequacy in income of the family Pull Factors Womens desire to evaluate their talent To utilize their free time or education Need and perception of Womens Liberation, Equity etc. To gain recognition, importance and social status. To get economic independence Factors influencing women entrepreneurs Economic independence Establishing their own creativity Establishing their own identity Achievement of excellence Building confidence Developing risk-taking ability Motivation Equal status in society Greater freedom and mobility The Scope Of Entrepreneurship Among Women The concern to develop more women entrepreneurs emerges from the fact that women represent 50% of world population, but receive only 10% of the world income and less than 1% of the worlds assets. Yet, research has shown that women entrepreneurs are no different from men in terms of their personality cognition, achievement motivation, dependency and other related attitudes.

POLICY FRAMEWORK SUPPORTING WOMEN ENTREPRENEURS IN INDIA The principle of gender equality is enshrined in the Indian Constitution in its Preamble, Fundamental Rights, Fundamental Duties and Directive Principles. The Constitution not only grants equality to women, but also empowers the State to adopt measures of positive discrimination in favour of women. Within the framework of a democratic polity, our laws, development policies, plans and programmes have aimed at womens advancement in different spheres. From the Fifth Five Year Plan (1974-78) onwards has been a marked shift in the approach to womens issues from welfare to development. In recent years, the empowerment of women has been recognized as the central issue in determining the status of women. NATIONAL POLICY FOR THE EMPOWERMENT OF WOMEN: 2001 1. Creating an environment through positive economic and social policies or full development of women to enable them to realize their full potential; 2. The de-jure and de-facto enjoyment of all human rights and fundamental freedom by women on equal basis with men 3. Equal access to participation and decision making of women 4. Equal access to women to healthcare, quality education, career and vocational guidance, employment, equal remuneration, social security etc. 5. Strengthening legal systems aimed at elimination of all forms of discrimination against women; 6. Changing societal attitudes and community practices by active participation and involvement of both men and women;

WOMENS COMPONENT PLAN AND GENDER FOCAL POINTS The Planning Commission, with a view to converge the benefits in the social and economic development sectors for women in the 9th Plan had requested all the secretaries of the various Ministries and Departments of the Government of India to draw up a womens component plan to identify allocation in all the sectors at the Centre by aggregating them in an integrated manner. The Cabinet approved one of the recommendations of the National Perspective Plan for Women (1988-2000), The Department, accordingly, requested all the Ministries/Departments to set up advisory committees for women in each sector to help in the preparation, monitoring and implementation of the women component plan, to set up a womens cell, to set up gende r focal point and to include a chapter on women component plan in their annual reports. NATIONAL COMMISSION FOR WOMEN a) Organizing through NGOs Parivrik Mahila Lok Adalats throughout the length and breadth of the country on a continuous basis; b) Launching of programmes on Legal Awareness; c) Sensitization programmes for police, NGOs, officials for better implementation of safeguards and laws for the benefit of women; d) Release and rehabilitation of women prisoners; e) Rehabilitation of prostitutes and their children; f) Rehabilitation of widows and land support to anti/arrack movement; g) Custodial justice for women prisoners; h) Participation of women in the electoral process; and i) Issue of violence on women; j) Dahej Mukti Abhiyan; k) Technological Empowerment of Women in Agriculture; l) Rights of minority Women. PROGRAMMES SUPPORTING WOMEN ENTREPRENEURSHIP Swa-Shakti Project Swa-Shakti Project was jointly financed by International Funds for Agricultural Development (IFAD) and World Bank was initially taken up in Tamil Nadu. That project, under implementation for the more than a decade now, has shown significant results in so far as empowerment of women is concerned. IFAD initially offered to provide assistance for this new project, intended to be taken up in the states of Bihar, Gujarat, Haryana, Karnataka, Madhya Pradesh and Uttar Pradesh. Methodology 1. Identification of rural women beneficiaries, particularly those engaged in on-farm activities; 2. Their organization into small, homogeneous groups; 3. Their awareness generation and confidence building; 4. Upgrading their skills, through optimum use of existing facilities and tie up with the existing schemes and programmes or provision of special facilities under the project; 5. Their training in group dynamics; 6. Their functional and legal literacy; The overall objective of the project is to strengthen the processes, and create an environment, for empowerment of women. Rashtriya Mahila Kosh (RMK) Its main objectives are : To provide or promote the provision of micro-credit to poor women for income generation activities or for asset creation. To adopt a quasi-informal delivery system. To demonstrate and replicate participatory approaches in the organization of womens groups for thrift and savings and effective utilization of credit. To use the group concept and the provision of credit as an instrument of womens empowerment. To receive grants, donations, loans, etc., for the furtherance of the aims and objectives of the Kosh. The Kosh has three main roles: 1. Wholesaling Role 2. Market Development Role 3. Advocacy Role The main features of the micro-finance services being provided by RMK are : It is a tool for empowerment of the poorest. Delivery is normally through Self Help Groups (SHGs). It is essentially for promoting self-employment. It is not just a financing system, INSTITUTIONAL SUPPORT TO WOMEN ENTREPRENEURS Consortium of WE in India Federation of Indian women entrepreneurs Federation of Ladies Organization (FLO) Women India Trust Special Schemes by Banks: Cent Kalyani State Governments Scheme for Development of Women and Children in rural areas Self-Employed Womens Association (SEWA)

Objectives The main objectives are as follows: To provide training facilities in export marketing and management, domestic marketing. To facilitate enterprise-to-enterprise co-operation within the country. To provide greater access to latest technologies. To facilitate participation in international and regional exhibitions. To effectively articulate the problems and constraints faced by women entrepreneurs to get greater exposure business To enhance access to term loan and working capital. Assisting in the identification of investment opportunities.

DIRECT & INDIRECT FINANCIAL SUPPORT Nationalized Banks State Finance Corporation State industrial Development Corporation District Industries Centers Mahila Udyug Needhi Scheme Small Industries Development Bank of India (sidbi) State Small Industrial Development Corporations (ssidcs) CHALLENGES IN THE PATH OF WOMEN ENTREPRENEUR Lack of skills & Training Lack of confidence Problems of long term & short term finance Socio-cultural barriers Production problems Inefficient marketing arrangements STRATEGIES FOR THE DEVELOPMENT OF WOMEN ENTREPRENEUR Overcoming family resistance Shouldering dual responsibility & Time Management Acquire education, Skills & go for confidence building trainings Financial assistance Effective & efficient use of IT Marketing Support Financial Management Group entrepreneurship Programs and policies taking in to consideration special needs and concerns of Women Mentorship support