WHAT IS FAMILY MANAGE BUSINESS ITS ADVANTAGES AND DISADVANTAGES ?

Family business is a corporation or conglomerate, wherein each member of the family has a significant ownership or interest and commitment. Family business may have some owners who arent members of the family. There are some cases wherein the family business is managed by individual who are not part of the family. On the other hand, the members of the family are usually involved in terms of operations of the business, which can make or break the function of the company. Advantages to the individual

Puts you in control of your own destiny An acute sense of achievement as a family An incentive to keep going Provides a certain level of freedom An opportunity of employment Can keep the family together Creates wealth Offers security Instills a sense of pride and belonging.

Advantages to the business

Can be a competitive advantage More strategic than tactical Creates enthusiasm and passion Can enable a company to outperform Offers a strong corporate culture High staff loyalty, lower staff turnover Builds a family's status in the community Long-term corporate vision.

Disadvantages to the individual

You can feel trapped. Might prevent you doing what you really want Need to be better than non-family peers The weight of family, peer and employee responsibility Can be difficult to raise liquidity Can tear the family apart, if not properly managed.

Disadvantages to the business

Family businesses can be regarded as amateurish Non-family members may not join because they cannot reach the top It can be difficult to raise capital Senior family members may see themselves as having a job for life Decisions may be too emotional There may be a deep seated aversion to change It can be a struggle to continue the spirit of entrepreneurial flair.

Q. Are entrepreneurs born or made?

BORN - According to some people, attitude is the most important personal characteristic, and one that cannot be trained. The attitude of the entrepreneur affects the early success of the venture. That same attitude needs to be present in the firm's employees to continue the entrepreneurial energy that creates competitive advantage in the operation of the business, even after it has become a large successful company. Another opinion: However, attitude is not everything in terms of actually having success at an entrepreneurial business. Knowledge about financial and marketing is far more important in today's world in order to be able to compete in the economic market, as far as small businesses are concerned. A person can have good aptitude and the drive to get something started, but do they have the knowledge to keep it going and actually earn something from it? MONEY drives business, so much more than attitude will. Thus an entrepreneur can also be made because they have to have the knowledge and skills to make a business on their own work like it should and not have to ride on the coat-tails of their employers. Any dummy can start a business, but it takes a knowledgeable person to make it grow and prosper.

Or
When we talk about entrepreneurs a certain image comes to mind. This person we imagine usually has a few common elements. She takes a tremendous amount of initiative, is willing to take risks and embodies the leadership to bring together the capital and resources for the organization and the management skills to see the initiative through. They will pursue their goal without regard to the resources they currently have yet they must be practical and actionoriented. With the success and attention garnered by several highly successful entrepreneurs who dropped out of or barely graduated from college to start their companies, we begin to think that that is the typical entrepreneurial model and that, given their youth and relative inexperience, their success was inborn. The reality though is that while these young, apparently inborn entrepreneurs are exciting the data show that they are still rare exceptions, as opposed to the norm, and that in fact entrepreneurs are created by a life full of experiences. According to research by Vivek Wadhwa at UC Berkeley, the average age when an entrepreneur starts a high-tech company is 40 after 15-20 years of work experience. This work experience gives them enough time to learn essential functional and management skills including how to build products, how to market and sell them, and how to build, grow and manage teams. 15-20 years is enough time to have some bumps along the way and, hopefully, learn a bit of humility. And finally, it is time that allows you to formulate ideas and get to know people who you trust implicitly that can help you turn those ideas into a company.

While I agree that this time of experience is important, I dont believe the path to entrepreneurial success is 100% based on experience. I see elements of both personality traits the possibly innate leadership skills as well as skills that one needs to acquire through education and life experience as key to becoming an effective entrepreneur. What are the elements of entrepreneurship that are personality traits? I believe the two key ones are leadership and the willingness to take risks. Its important to note that management and leadership are two different things. I believe management can be more easily learned than leadership some leadership qualities seem to be inborn (though I believe even here there is significant potential to cultivate, or not, those skills). As a parent of 4 I saw different tolerances for risk in my children as early as 6 months of ages. I did not teach that to them it was part of who they were. There is another element that I believe is critical for successful entrepreneurs and that is passion around the idea that they are pursuing. Many of us know someone who is normally very quiet but becomes animated and forceful around a specific. That passion can help us seek out the experience were lacking and possibly take uncomfortable risks. So even with different natural abilities, I dont believe life is deterministic. We cant pick our parents nor our upbringing. We can, however, choose how hard we work, what skills we develop and how we can be our best self. There are different styles of risk taking just as there are different styles of leadership. Pair the style that works for you with the Malcolm Gladwell recipe of 10,000 hours of practice to get good at the key skills and I think you can have a winner.

SUCCESSFUL ENTREPRENEUR? Dhirubhai Ambani

Born: December 28, 1932 Died: July 6, 2002 Achievements: Dhiru Bhai Ambani built India's largest private sector company. Created an equity cult in the Indian capital market. Reliance is the first Indian company to feature in Forbes 500 list Dhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is reminiscent of the rags to riches story. He is remembered as the one who rewrote Indian corporate history and built a truly global corporate group. Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends. After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company.

Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialisation in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics. Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retail investors in a market till then dominated by financial institutions. Dhirubhai revolutionised capital markets. From nothing, he generated billions of rupees in wealth for those who put their trust in his companies. His efforts helped create an 'equity cult' in the Indian capital market. With innovative instruments like the convertible debenture, Reliance quickly became a favorite of the stock market in the 1980s. In 1992, Reliance became the first Indian company to raise money in global markets, its high credittaking in international markets limited only by India's sovereign rating. Reliance also became the first Indian company to feature in Forbes 500 list. Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation of Indian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of India in 2000 voted him "greatest creator of wealth in the century". Dhirubhai Ambani died on July 6, 2002, at Mumbai.

Azim Premji
Born: July 24, 1945 Achievements: Chairman of Wipro Technologies; Richest Indian for the past several years; Honored with Padma Bhushan in 2005. Azim Premji is Chairman of Wipro Technologies, one of the largest software companies in India. He is an icon among Indian businessmen and his success story is a source of inspiration to a number of budding entrepreneurs. Born on July 24, 1945, Azim Hashim Premji was studying Electrical Engineering from Stanford University, USA when due to the sudden demise of his father, he was called upon to handle the family business. Azim Premji took over the reins of family business in 1966 at the age of 21. At the first annual general meeting of the company attended by Azeem Premji, a shareholder doubted Premji's ability to handle business at such a young age and publicly advised him to sell his shareholding and give it to a more mature management. This spurred Azim Premji and made him all the more determined to make Wipro a success story. And the rest is history. When Azim Premji occupied the hot seat, Wipro dealt in hydrogenated cooking fats and later diversified to bakery fats, ethnic ingredient based toiletries, hair care soaps, baby toiletries, lighting products and hydraulic cylinders. Thereafter Premji made a focused shift from soaps to software. Under Azim Premji's leadership Wipro has metamorphosed from a Rs.70 million company in hydrogenated cooking fats to a pioneer in providing integrated business, technology and process

solutions on a global delivery platform. Today, Wipro Technologies is the largest independent R&D service provider in the world. Azim Premji has several achievements to his credit. In 2000, Asiaweek magazine, voted Premji among the 20 most powerful men in the world. Azim Premji was among the 50 richest people in the world from 2001 to 2003 listed by Forbes. In April 2004, Times Magazine, rated him among the 100 most influential people in the world by Time magazine. He is also the richest Indian for the past several years. In 2005,Government of India honored Azim Premji with Padma Bhushan.

Chanda Kochhar
Born On: November 17, 1961 Born In: Jodhpur, Rajasthan Career: MD, CEO, ICICI Bank In India's male dominated banking sphere, Chanda Kochhar carved a niche for herself. This was no easy task. In her career which extends to over three decades of experience, she remained strong willed and alert. Her determination to make it to the top only grew from year to year. Kochhar's career growth can be traced along with the expansion of the bank over the past several years. She never stuttered in her growth and was one of the few who kept up with the aggressive development run of ICICI bank. It was her sharp strategic planning which made the ICICI bank the 'Best Retail Bank in India' for five consecutive years. As per Forbes, It's no wonder then that she has been ranked 20th amongst the most powerful women in business and in the world. Read on to find out more about how Chanda Kochhar made it to the top of the corporate pile. Early Life Chanda Kochhar was born in Jodhpur in Rajasthan on November 17, 1961, but was raised in Jaipur in Rajasthan. She then joined Jai Hind College in Mumbai for a Bachelor of Arts degree. After completing her graduation in 1982, she pursued cost accountancy (ICWAI). Later, she did her Master's degree in management studies from the esteemed Jamnalal Bajaj Institute of Management Studies in Mumbai from where she received a Wockhardt Gold Medal for Excellence in Management Studies. In the same year, she won the J.N Bose gold medal for Cost Accountancy. Career In 1984, after her masters, Chanda Kochhar joined 'The Industrial Credit and Investment Corporation of India Limited' or ICICI Limited as a management trainee. In her initial years in ICICI, she handled project appraisal and monitoring and various projects in Petrochemicals, Textile and Cement and Paper. In 1994, she became the Assistant General Manager and was promoted to the post of Deputy General Manager in 1996. She headed the Infrastructure Industry Group of ICICI. In 1999, she was promoted as the General Manager and became the head of ICICI's 'Major Client Group' which handled relationships with the top 200 clients of the organisation. In 1999, she started handling the Strategy and E-commerce divisions of ICICI. Under Kochhar's leadership, ICICI began its retail business in 2000 and in the next five years, became the biggest retail financer in India. In 2001, she became the executive director of ICICI bank. In April 2006, she was appointed as the Deputy Managing Director of ICICI bank and managed the corporate and retail banking business of ICICI bank. From October 2007 to April 2009, she was the Chief Finance Officer (CFO), Joint Managing Director (JMD), and the official spokesperson of ICICI. She was also the head of the Corporate Center of ICICI bank, the director of the ICICI group of companies, Chairperson of ICICI Bank Eurasia Limited Liability Company

and ICICI Investment Management Company Limited. Chanda Kochhar also held the positions of Vice-Chairperson of ICICI Bank UK and ICICI Bank Canada and the position of Director of ICICI International Limited and ICICI Prudential Life Insurance Company Limited. In May 2009, she was appointed as the Managing Director and the Chief Operating Officer of ICICI bank for a term of five years. Contributions Chanda Kochhar was a part of the core team when ICICI decided to set the ICICI Bank 1993. In 2000, when the organisation decided to develop its wings, she decided to keep the bank open for twelve hours in a day when other banks were open for four to seven hours a day. She was also one of the bankers who came up with electronic banking and installed 2000 ATM machines all over India. Under Kochhar's leadership, ICICI was awarded the 'Best Retail Bank in India' in 2001, 2003, 2004 and 2005. In 2002, the bank was given the 'Excellence in Retail Banking Award'. Legacy Chanda Kochhar is one amongst the two women who is the head of an Indian domestic bank. Joining the ICICI bank as a management trainee, she was instrumental in making ICICI bank the largest retail financer in India. She is an inspiration to women all over the world. Awards And Accolades 'Retail Banker of the Year' (Asia - Pacific region) by The Asian Banker, 2004 'Business Woman of the Year' by The Economic Times, 2005 'Rising Star Award' for Global Awards by Retail Banker International, 2006 Featured in the list of '30 Most Powerful Woman Leaders' in business for 8 consecutive years from 2002 to 2010 'Transformational Business Leader of the Year' by All India Management Association, 2010 Ranked 10th in the Fortune's List of 'Most Powerful Women in Business', 2010 Ranked 92nd in the Forbes List of 'Most Powerful Women' in the world, 2010 'Outstanding Woman Business Leader of the Year' award by CNBC TV18, 2010' Ranked 11th in the List of 'Top 50 Woman in World Business' by the Financial Times, 2010 Padma Vibhushan, 2011

Ratan Tata
Born: December 28, 1937 Achievement: Honored with Padma Bhushan, one of the highest civilian awards in 2000. Ratan Tata is presently the Chairman of Tata Sons, the holding company of the Tata Group. Ratan Naval Tata is also the Chairman of the major Tata companies such as Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, Indian Hotels and Tata Teleservices. He has taken Tata Group to new heights and under his leadership Group's revenues have grown manifold. Ratan Tata was born on December 28, 1937, in Bombay. He received a Bachelor of Science degree in architecture from Cornell University in 1962. Ratan Tata had a short stint with Jones and Emmons in Los Angeles, California, before returning to India in late 1962. He joined the Tata Group and was assigned to various companies before being appointed director-in-charge of The National Radio & Electronics Company (NELCO) in 1971. Ratan Tata was appointed Chairman of Tata Industries in 1981. He was

assigned the task of transforming the company into a Group strategy think-tank, and a promoter of new ventures in high technology businesses. In 1991, Ratan Tata took over the Chairmanship from JRD Tata. Under him Tata Consultancy Services went public and Tata Motors was listed in the New York Stock Exchange. In 1998, Tata Motors came up with Tata Indica, the first truly Indian car. The car was the brainchild of Ratan Tata. Ratan Tata was honored with Padma Bhushan, one of the highest civilian awards in 2000. He was also conferred an honorary doctorate in business administration by Ohio State University, an honorary doctorate in technology by the Asian Institute of Technology, Bangkok, and an honorary doctorate in science by the University of Warwick.