Generational Differences in Family Enterprises: A Need for Reverse Mentoring

Abstract

Family enterprises are defined as a special type of enterprises. The involvement of a family in the enterprise is what makes these enterprises unique. This paper reviews the literature on changing dimensions in family enterprises from independence to recent times. There is paradigm shift in Indian Business environment. Indian business environment till 1980’s was planned, regulated and controlled. Whenever a paradigm shift occur a new analytic framework changes the way a system operates. The policies of liberalization, privatization and globalization gave paradigm shift to Indian liberal business environment and this lead to new breed of entrepreneur who were well trained, qualified and much more educated. Many businesses in India could not flourish due to adamant strong beliefs of the old breed of entrepreneurship which were not in tune with new budding entrepreneur emerged out of a new business environment. This created the need for mentoring, coaching, guiding for the sustainable development of Indian family businesses because old generation did not have much to offer in the new business environment.This paper focuses on the paradigm shifts how the business operates in terms of the family system, political systems, information technology, human resource management, marketing needs and management education or professional degrees acquired by new entrants to family businesses. These are discussed along with their implications on family enterprises. The sustainability of the family businesses rests with the adoption and proper understanding of the changed business environment. Moreover young family members need to adopt and mentor their parents as per new environment. This raises the need for reverse mentoring as a tool for the sustainability and growth of family businesses, which has been elaborated in the paper with aid two case studies of family run enterprises.