Entrepreneurship & Family Business - Complementary Dynamics 1 st Families in Business Day - November...
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Transcript of Entrepreneurship & Family Business - Complementary Dynamics 1 st Families in Business Day - November...
Entrepreneurship & Family Business - Complementary Dynamics
1st Families in Business Day - November 8, 2013
Thank you to our partners.
Thank you to our presenters.
Thank you to each of you.
Welcome!
1. Treat everything shared as confidential.
2. Leave the office at the office.
3. Meet someone new.
4. Learn something new.
5. Apply something new.
6. Share your experience.
Groundrules
Asia Pacific (10)2007
Africa2009
North America (10) 2011
Europe (13) 2005
Latin America (10) 2006
STEP Affiliates
Key Facts• 43 Affiliate Universities• 200+ Scholars• 100+ Family Cases Worldwide• 15 Summits / Academic Meetings
STEP ELGAR BOOKS
7
ENTREPREURSHIP – What is it? FAMILY BUSINESS – What is it?
In a Family BusinessWHOSE RESPONSIBILITY IS
ENTREPRENEURSHIP? Individual vs. Family
Where are we today & Where do we want to be?
FOUNDERS
Think of a male / female founder
What word/s describe this person/s
HENRY FORDCARLOS
SLIMHenri Nestlé
Celeste North, NuFlick
Founders
Decisive
Risk-takerCreative
IndependentVisionary
Confident
Controlling
Passionate
Entrepreneurs?
POPULAR VIEWS
1.Decisive
2.Independent
3.Visionary
4.Confident
5.Risk taker
6.Creative
7.Controlling
8.Passionate
IN REALITY1.Yes – but no different from other leaders2.Support family & team3.Often no vision4.No more confident than others5.Moderate to low risk6.Often don’t create technology, buy business, or license7.Yes- but no more than other occupations8.Yes- but doesn’t distinguish
Adapted from Schlesinger, 2010
Entrepreneurs?
POPULAR VIEWS
1.Decisive
2.Independent
3.Visionary
4.Confident
5.Risk taker
6.Creative
7.Controlling
8.Passionate
IN REALITY1.Yes – but no different from other leaders2.Support family & team3.Often no vision4.No more confident than others5.Moderate to low risk6.Often don’t create technology, buy business, or license7.Yes- but no more than other occupations8.Yes- but doesn’t distinguish
Adapted from Schlesinger, 2010
Capabilities matter
NOT traits
Develop Entrepreneurial Spirit
Practice, Practice, Practice…..
Use the entire life span for practicing entrepreneurship
Something new every day, every year –
…… products, places, processes, people ….
10,000 hours of practice to excel in anything
even ENTREPRENEURSHIP!
When the shoe fits…..
ENTREPREURSHIP – What is it? FAMILY BUSINESS – What is it?
In a Family BusinessWHOSE RESPONSIBILITY IS
ENTREPRENEURSHIP? Individual vs. Family
Where are we today & Where do we want to be?
What is F-B Success?
Family level +ve outcome
Family level -ve outcome
Firm level+ve outcome
Warm Hearts Deep Pockets!
Pained HeartsDeep Pockets
Firm level-ve outcome
Warm HeartsEmpty Pockets
Pained HeartsEmpty Pockets
Distinguishing FBs from NFBs
CONTROL & INFLUENCE
How?
Through
OMG combination of
Ownership, Management, Governance
The Three Circle Model
Ownership
Management Family
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4
5
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GLOBAL Report on Family Businesses Large numbers & contributors to jobs / economy / society
Latin America / Asia – 90-98% US / Germany / Spain – 80-90%
Large, Medium, Small size
Out-perform non-family enterprises
– Especially in the first generation; Second generation some do, not others
70% would like to pass their business to next generation
BUT next gen is not always interested OR
capable OR
prepared to work in the founder’s business - WHY?
• MARKET value / marketability of the firm
• Founder’s dream may not be shared by the next generation
• Founder’s shadow is deep
• Next generation not ready
• Entrepreneurial / leadership skills not honed
• Limited opportunities in ONE enterprise to practice
ENT / Leadership skills of 2 or more generations
WHY might family firms NOT get to the 2nd generation?
Success Across Generations
World’s Oldest Family Firms
Kongo Gumi (578 to 2007)
Hoshi (Japan 718) Baravier & Toso (Italy, 1295)
Hotel Pilgrim Haus (Germany, 1304)
Mittelstand
Successful multigenerational organizations balance
Tradition with innovation
Family with Business
51 questions to become a Henokien one day
ENTREPREURSHIP – What is it? FAMILY BUSINESS – What is it?
In a Family BusinessWHOSE RESPONSIBILITY IS IT?
Individual vs. Family
Where are we today & Where do we want to be?
Focus of Entrepreneurship
NO – New Creation or
Innovation
YES – New Creation or
Innovation
Focus of Family Business Studies
NO Significant
family influence on business
Plateaued FirmsCruising Managers
Entrepreneurial FirmsLone
Entrepreneurs/Entrepreneurial
Teams
YESSignificant
family influence on business
Plateaued Family Firms
Cruising Kin
EntrepreneurialFamily FirmsEnterprising
Families
Entrepreneurship and Family Business
Entrepreneurship & Family Business: HANDLING NEW INITIATIVES
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2
3
4
5
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Life Cycles
Key changes in last two decades?Longer expectancy (USA)
MaleFemale
1900 46.2 48.9
1981 72.4 79.2
2012 80.5 84.7
Women in US workforce
72 million (58.6% of all 16+ women) participate in the labor force
47% of US labor force are women
By 2018, 51% of US workforce is expected to be females
Healthier lives lived
More females joining the workforce
Key changes in last two decades?Longer expectancy (USA)
MaleFemale
1900 46.2 48.9
1981 72.4 79.2
2012 80.5 84.7
Women in US workforce
72 million (58.6% of all 16+ women) participate in the labor force
47% of US labor force are women
By 2018, 51% of US workforce is expected to be females
Healthier lives lived
More females joining the workforceGenerational Stack-
Up!
Life Expectancies
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P A U S E 1. Where do you fall on the life cycle map?
Pre-adulthood (0-15 years)
Provisional adulthood (16-30)
Early adulthood (31-45)
Middle adulthood (46-60)
Late adulthood (61-75)
Late-late adulthood (76+
2. How are you practicing entrepreneurship -
doing something new?
Let’s PauseLife Stage Person #1 Entrepreneurial
activitiesPerson #2 Entrepreneurial
activities
Pre-adulthood (0-15 years)
Provisional adulthood (16-30)
Early adulthood (31-45)
Middle adulthood (46-60)
Late adulthood (61-75)
Late-late adulthood (76+
ENTREPREURSHIP – What is it? FAMILY BUSINESS – What is it?
In a Family BusinessWHOSE RESPONSIBILITY IS
ENTREPRENEURSHIP? Individual vs. Family
Where are we today & Where do we want to be?
Entrepreneurial Family Firms:
COMBINING FORCES
Family AND Business
Individual AND Family
Managing AND Innovating
Entrepreneurship in EVERY generation?
1
2
3
4
5
6
ENTREPREURSHIP – What is it? FAMILY BUSINESS – What is it?
In a Family BusinessWHOSE RESPONSIBILITY IS
ENTREPRENEURSHIP? Individual vs. Family
Where are we today & Where do we want to be?
What’s next?
10:45 - 12:00 p.m. - Concurrent workshops - Session AVermont A, Vermont B, Burlington Conference room
12:00 - 1:30 p.m. Lunch Keynote - "Staying Innovative after 200 Years in Business" with Charlie Kittredge, Chairman and former CEO of Crane & Co. - Seasons on the Lake room
1:45 - 3:00 p.m. - Concurrent workshops - Session B Vermont A, Vermont B, Burlington Conference room
3:15 - 4:30 p.m. - Concurrent workshops - Session C.Vermont A, Vermont B, Burlington Conference room
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Enjoy!