Asked by Christiana Alexia on Feb 18, 2024
Verified
Describe family enterprising and apply the concept to your business concept.
Entrepreneurship
A way of thinking, acting, and being that combines the ability to find or create new opportunities with the courage to act on them.
- Identifying the benefits of family enterprising: Family enterprising can bring several advantages to a business, such as shared values, trust, and commitment among family members. It can also foster a long-term perspective, as family businesses often have a multi-generational focus. Additionally, family enterprising can create a strong sense of identity and pride within the family, leading to increased motivation and dedication to the business.
- Recognizing the challenges of family enterprising: While family enterprising has its benefits, it also presents unique challenges. These challenges include potential conflicts arising from the overlapping of family and business roles, difficulties in separating personal and professional matters, and succession planning issues. It is crucial to establish clear communication channels, set boundaries, and implement effective governance structures to address these challenges.
- Understanding the concept of family enterprising: Family enterprising refers to the involvement of multiple family members in the management and operation of a business. It involves the combination of family dynamics and business activities, where family members work together to achieve common goals and create a sustainable business.
Verified Answer
LT
Laura Thomas
Feb 18, 2024
Final Answer :
This essay will have different answers depending on the student's business concept.Here is the information on family enterprise: A family enterprise is a business that is owned and managed by multiple family members.What makes family enterprising part of the portfolio of entrepreneurship types is that each generation has an opportunity to bring the organization forward in new,innovative ways. An entrepreneurial agenda to move the family business forward is essential to business survival,as demonstrated by low survival rate: for instance,approximately 70% of family businesses fail or are sold before the second generation reaches a position to take over.This may be because the family owners become stuck in the old ways of doing things and are unwilling to change their business structure as a result. Many leading organizations that are family businesses are generally considered to be more stable,not only because of their past history and experience,but because of their ability to take a long-term view,which inspires commitment and loyalty from their employees.Yet,a long-term view that becomes stagnant is detrimental and can lead the company into a downward spiral. Family-owned businesses are hugely important for the U.S.economy,and account for 60% of employment,78% of new jobs,and 65% of total wages (see Figure 1.3).Widely known businesses such as Wal-Mart in the United States,Auto Company Volkswagen in Germany,and healthcare company Roche in Switzerland are all long-standing family businesses that continue to go from strength to strength.To continue their cycle of growth and continuity,family members must pass on their entrepreneurial mindsets as well as their business ethos.It is this mindset that ensures the survival of the family business for many years to come.
Learning Objectives
- Identifying the benefits of family enterprising: Family enterprising can bring several advantages to a business, such as shared values, trust, and commitment among family members. It can also foster a long-term perspective, as family businesses often have a multi-generational focus. Additionally, family enterprising can create a strong sense of identity and pride within the family, leading to increased motivation and dedication to the business.
- Recognizing the challenges of family enterprising: While family enterprising has its benefits, it also presents unique challenges. These challenges include potential conflicts arising from the overlapping of family and business roles, difficulties in separating personal and professional matters, and succession planning issues. It is crucial to establish clear communication channels, set boundaries, and implement effective governance structures to address these challenges.
- Understanding the concept of family enterprising: Family enterprising refers to the involvement of multiple family members in the management and operation of a business. It involves the combination of family dynamics and business activities, where family members work together to achieve common goals and create a sustainable business.