Entrepreneurship Development Institute of India (EDII), an acknowledged national resource Institute for Entrepreneurship Education, Research, Training and Institution Building, will focus on succession planning for family business entrepreneurs. The Institute will conduct ‘Family Business Clinics’ across major cities to help and mentor second & third generation of MSMEs for boosting family business. The Institute has already enabled over 400 next-gen entrepreneurs through its flagship program PGDM in Business Entrepreneurship (PGDM-BE). Research studies shows over 80% of family businesses in India do not have a robust, documented and communicated succession plan.
The Institute has already conducted few such clinics at Industry Associations in Ahmedabad, Vadodara, Rajkot, Jodhpur and Bhopal to sensitize MSMEs about succession planning and family business management. Similar clinics will be held in other tier 2 cities across India. These clinics include sessions on creating leadership culture, incorporating strategic planning in running business, solving capital access issues and use of digital media for promoting one’s enterprise.
Emphasizing on the need for boosting family business in India, Dr. Satya Ranjan Acharya, Faculty, EDII said, “India ranks in top five when it comes to contribution of family-owned businesses to total market capitalization and GDP. However, many MSMEs fail to grow because they lack succession planning. Succession planning has become buzzword for family-owned businesses in last decade as the elder generation has realized the importance of professional training and grooming the young generation to take up business responsibilities in future.”
The clinics would sensitize the next generation about the importance of participating and contributing to the family business. The participants will be able to introspect towards their own leadership style and learn the importance of imbibing new leadership styles that not only inspires internal organizational collaboration to extend it to next generations, but also empower them to help their family business expand across industries and beyond borders.
“Family Business Leadership Clinic is designed to help the participants create a leadership culture in family business so that their one-leader model transits to become a leadership team model and leads the organization to become a multigenerational family business,” Dr. Acharya said.