Entrepreneurship in Family Business and Challenges

Abstract

Many small and micro businesses are family-owned and have proved that they are successful. Davis and Tagiuri (1982) defined as: organizations where two or more extended family members influence the direction of the business through the exercise of kinship ties, management roles, or ownership rights.” Family business is an interaction of Ownership, Management & Family. An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur which converts a source into a resource. By considering the Latur district of Maharashtra, 59% of market contribution and 48 % of the assets created and 46 % of employment generation is managed by the family business firms. Sharing of information, knowledge, attitude and skills would in itself strengthen family ties. This paper delves into the aspects, which can help for the sustainability of family businesses and help entrepreneurship for wealth creation. The second generation of many businessmen are getting themselves professionally and technically qualified and trained these days, so as to manage the existing family business effectively with their innovation and entrepreneurial ideas.