The Relationship Between Entrepreneurship And Family Businesses The word Entrepreneur (Entrepreneur) that emerged in the nineteenth century France codeword puzzling in the world after the economic crisis. Many turned to the Omnia APP investment style of a character approaches largest after that was formed to have a vision for new ways of doing business, which arose as a result of exposure to shake Zlzlzat entity. Family businesses are no exception and always strive for renewal and modern visions. In this article we will review the relevant relationships between entrepreneurship and leadership and institutional business in the family business environment.
“I’m an entrepreneur” is repeated on the ears of information technology expert, who founded his company in a small garage, as well as a merchant who imported goods from places no one else to access, as well as brother and sister those who run a small chain of restaurants. But what about the leader of a family business from the fourth generation? Is the entrepreneur as well? Initially, in normal circumstances, it would be likely to disappoint thought this individual belongs family company where the word “entrepreneur” linked basically renewal which guided the vision and the dynamics of incorporation and take risks, which are far from being attributes of family businesses. However, the distinction between them may not be that easy, every family of entrepreneurs and corporate entities seen as important in the global recovery phase of the post-crisis, and therefore the relation between them worthy of study and observation. Not as preoccupied with the complexity of the relationship between the entrepreneur and the family and its future generations, few researchers business. We need to explore a variety of aspects in order to begin to absorb these important connections and the preparation of dialogue for the mutual benefits.
To accommodate the roots of the word entrepreneur (entrepreneur) we will need to travel through time and space to move to France in the nineteenth century. French word meaning entreprendre distinction entrepreneur businessman by linking it directly to the completion of projects through individual efforts and organization. This is what explains the dynamic and self-characteristic inherent in the word.
At present, the society looks at entrepreneurs as individuals or group of individuals invest for the development of their companies through the collection and use of resources such as innovation, financing and skills. Business experts select the readiness of the entrepreneur to take risks in order to accomplish his vision for the company and the pursuit of Omnia APP opportunities as one of the most visible features. Usually, entrepreneurs are innovative, competitive and dynamic personalities with a vision of success.
Entrepreneurship institutional business
On this, do you establish the entrepreneur for his company and successfully develop institutional structures and systems will mean the end of entrepreneurship? Is there a pioneering stage work give way to something new? Without a doubt a dynamic start of activity of each company at some point go through a more organized and committed to the rules structures. However, no one could deny the fact that all companies need to continue to be renewed to ensure its survival and growth. As far as you could be a great company, you will always remain obliged to evolve to meet the growing needs of its customers, or new, or to be more effective and efficient, or to explore new business opportunities.
Since the era of the seventies of the last century, the researchers identified the institutional behavior that was facing these aspects as a “pioneer of institutional business.” Leadership can be defined institutional business on that effort institutions to get new business through existing structures and systems. This may lead to the development of new projects, and the renewal of products or services or existing operations, and review strategies and competitive position.
Entrepreneurship institutional business is a challenge for all organizations, where traditional roles may change the company and possibly control mechanisms do not operate the company as required for the areas that are exposed to change. Moreover, Entrepreneurship always involves the risk of failure, which senior management will need to be balanced against the expected gains from behind these Omnia APP investments. Another challenge is the difficulty faced by managers in the creation of new business opportunities, while at the same time remain responsible for compliance with regulations and rules for daily business performance.
Regardless of the many challenges to be faced by the company, the leadership of the institutional business are all part of the founders of the system, even if it is not this recognition in some cases.
The researchers found two types main pioneered institutional business: one through the leadership of strategic business, which means the renewal of existing strategies the company through innovations, staff, and the other by participating in institutional projects which may be buying the company at the beginning of its activity or participate in projects with others.
Entrepreneurship and family businesses
So where is if the actual link between the family business and entrepreneurship? In companies that are not run by the families of the relationship with entrepreneurship are directly based on the leadership of the institutional business. Entrepreneurship institutional business is considered the first and the simplest way to non-family companies to interact with the world of entrepreneurship.
However, the relationship between entrepreneurship and family businesses is more complex due to the particularity system by which the companies owned and run by families.
The first link is very clear: all family businesses based on the vision of an individual be able to take advantage of the work, and who spends years and years in the administration of the company. In many cases, the family company naturally appear without the actual beginning of the planning: the basis of need and abstract because of the scarcity of resources, the entrepreneur takes advantage of any resource available to him, and one of these resources is the family. In addition, this entrepreneur may find easier to connect the vision and clarified within the family through socialization and shared values.
The second link between the family business and the entrepreneur, and as shown above, it is the pioneer of institutional business in the existing company. Just as is the case in non-family businesses, family businesses can cooperate with the existing management team of renewal from within the company. This means the need to have all owners of the company, whether they are first-generation or second or fifteenth entrepreneurs and innovators for new ideas to keep the company in the lead, while at the same time remain committed to the systems and rules of the company.
The third link element characterized by family businesses: in the family business, there is a unique base of skills related to the company through family links, which may be an opportunity for both the individual and institutional leadership business. Children who are accustomed to a family upbringing companies to watch associated with entrepreneurship from an early age behavior and often they have made up a strong sense of business and company. Watching parents and aunts and uncles, brothers and sisters involved in the activities of the company knows a lot of secrets of the next generation has the profession stimulates their interest to create new business ideas on their own. The company is not limited to the impact on individuals directly involved in the daily performance of the business, but it also extends the life of all the parties concerned family. It lacks non-family companies for this opportunity, which may have an individual family, especially in directing innovation and entrepreneurial skill. They have now choose to use this skill to set up their own companies. A family owned company should take advantage of this creative energy rather than monitored remotely. We all realize that the surrounding medium business pioneer in the highly dynamic has been acting as an incentive to anyone who interacts with him. Thus the family firms that seek to renew will have the opportunity to interact with the entrepreneurial spirit and taking advantage of modern visions without investing outside the family.
This quick overview of the relationship between the family business and entrepreneurship shows us a dynamic link between the two and leave us with a lot to explore and study it. The most important thing to know is that entrepreneurship in the core of every family business and the entrepreneurial spirit should be passed from one generation to another. This spirit is supported sustainability and stability provided by the family is what will continue to guide the family business to remain a leader in the areas of work.