Gone are the days when business families used to send their children to international B schools to learn the tricks of the trade before inducting them finally to the family business. India is exploding with opportunities, and who wants to miss all the action! Also, a good number of Indian B-schools like ISB and SP Jain now offer special courses on family business management. Indeed, living and studying in India provides the next generation of family business owners the much needed “connect” with the realities of Indian business ethos and market.
As a result, the number of management programs, especially targeted to family-owned businesses, has almost doubled in the last two years. This article by MBAUniverse.com editorial team talks about the basic of FMB MBA, and why this is a rising trend.
Why is there a need for Family Managed MBA?
Family-owned businesses play a crucial role in the economy of a country. A good volume of retail trade, small scale industry, and the service sector are run by family businesses.
Further, family-managed businesses employ half the world’s workforce and generate well over half of the world’s GDP. In the United States, 24 million family businesses employ 62 per cent of the workforce and account for 64 per cent of the GDP. In India, it is estimated that 95 per cent of the registered firms are family businesses.
The contribution of family businesses has gone beyond simply paying taxes and employing people. Most of the business families face unique management challenges because of the difference in the attitude and aspiration of family members. As new generations join the business, it is an enormous challenge to keep the family and business together.
It is observed that just 13 per cent of the family businesses survive till the 3rd generation and only 4 per cent go beyond the third generation. One-third of the business families disintegrate owing to generational conflicts.
FMB MBA is playing a crucial role in mitigating these issues. Here, business heirs are taught how to face problems in day-to-day functioning and in time of a crisis, methods of modern management in all its aspects and ways to grow the business.
In a nutshell, the objectives of an MBA for family business are as follows :
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Equip a young member of a business family with management concepts and techniques for meeting the distinct challenges in managing a successful, growing business.
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Prepare him/her for developing a strategic and general management understanding of the business backed up with a global perspective.
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Inculcate in the family member the attributes of continuous learning and reflection which would enable him/her to keep abreast of the future.
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Develop a keen business interest in the external world beyond the family and the business.
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Understand and synergise the dual role – as a member of the owner family and as a business manager
Specialized FMB MBA on rise
A conventional MBA student from a renowned Indian institute or a foreign university may not provide adequate response to these needs of wards from family businesses. On the other hand, the FMB programme is designed primarily keeping these factors in mind thus equipping the participant with good capabilities in these issues.
So if you are interested in doing the courses which can make you well equipped in running a business managed by your family you can certainly head towards leading B Schools namely IIM Bangalore; SPJIMR, Mumbai; Indian School of Business, Hyderabad and NMIMS Mumbai.
Stay tuned to MBAUniverse.com for more news and updates on FMB MBA
