Succession Problem in Small business

[Dr.Jose Sebastian]

Dear all

I would like to share with you a tendency in Kerala, a non-entrepreneurial society. I did a little bit of research to find out the career choices of SME entrepreneurs' children. The children of more than 75% of SME entrepreneurs i interacted with dont want to succeed their parents. They are after professional degrees like Engineering, Medicine, MBA and so on. The parents apparenly do not encourage the children to succeed them. They don't want their children to slog like them ! The poor self-image of entrepreneurs seem to be the problem.
My problem is how to convince the entrepreneurs and their children that this is a career worth pursuing from the individual as well as societal point of view.
What interventions are possible ?
I am interested to know the experiences of other societies and countries and also the interventions they have experimented with.

Jose Sebastian

[lady macbeth]

I can imagine this is very difficult. I know if I realised how much hard work and stress this 'job' was I would probably never have taken it on. As the children would know full well the sacrifices their parents would have made I can fully understand why they would not want to follow them into the family busines if they had other options.

Good Luck!!

Samantha

[Rob]

You have hit upon the key problem as regards succession in that the children have to want to carry on the familiy tradition.

If, as you have highlighed in previous posts as affecting you, the culture does not value or understand the importance of entrepreneurialism then getting the next generation to volunatrily take over the regins is very difficult.

As Samantha has pointed out, children absorb what goes on around them and hence are influenced (even at the subconscious level) in their future decisions.

Certainly in the UK and the States being an entrepreneur is seen as cool (as a 40 something am I allowed to use words like that??) and succession is less of an issue.

So back to the whole cultural mindset I'm afraid Jose.

[PaulSimister]

Rob there is nothing wrong with being a 40 something or saying "cool" - not from where I'm standing anyway.

To go back to the original question I think that one of the benefits of a developing society is that it creates more options and the freedom to make the choice that is right for you.

I hope this doesn't offend anyone but I see four types of people

1) owners of struggling small businesses that work all hours to earn less than they would be paid from employment

2) owners of successful small businesses who do very nicely but don't have any desire to move from being a small business to a big business

3) entrepreneurs who want to and do build a big business and reap great rewards

4) serial entrepreneurs who create one successful business and then move on to the next and then the next...

If all the people see around them are people who fall into category 1 then it is no surprise that the children don't want the same life and if clever enough would prefer to enter a profession.

So you need to educate people about the potential of being in any of the other categories through examples, stories and case studies. The more people see that an alternative to category one is possible (and with the right help probable) the more attractive small business ownership and the life of an entrepreneur).

In the UK it is through the success of TV programs like Dragons Den that have encouraged more interest in being an entrepreneur.

The Robert Kiyosaki book Rich Dad Poor Dad (http://businesscoaching.typepad.com/the_business_coaching_blo/2007/11/robert-kiyosaki.html) (and the follow up Cash Flow Quadrant) is also a great persuader that happiness and wealth does not lie in the "get a good job" route.

Sorry I seemed to get a bit carried away here as I only intended to write a short answer.

[C.A.B.s]

To go back to the original question I think that one of the benefits of a developing society is that it creates more options and the freedom to make the choice that is right for you.

I hope this doesn't offend anyone but I see four types of people

1) owners of struggling small businesses that work all hours to earn less than they would be paid from employment2) owners of successful small businesses who do very nicely but don't have any desire to move from being a small business to a big business

3) entrepreneurs who want to and do build a big business and reap great rewards4) serial entrepreneurs who create one successful business and then move on to the next and then the next...

If all the people see around them are people who fall into category 1 then it is no surprise that the children don't want the same life and if clever enough would prefer to enter a profession.

Hi paul

i think i fit into numbers 1 & 3 of your list

1) owners of struggling small businesses that work all hours to earn less than they would be paid from employment

3) entrepreneurs who want to and do build a big business and reap great rewards.


i am the owner of a struggling small business and work all the hours ( but i dont earn any money at the moment) :(

i am also a entrepreneur who want to and do build a big business and reap great rewards but nothing has yet to see any rewards of my hard work.

Caroline

[Rob]

Jose,

Just had to share this with you. I have just returned from an evening function here in Nairobi, Kenya, where I live.

The function was the final session of a British government funded review into the idea of starting a formal training programe for Kenyan SMEs.

I was speaking this evening to the consultant leading the review and the topic came up about the different entrepreneurial spirit in different countries. I mentioned the apparent difference between North and South India. I know that the Gujirati's are renowed traders and he agreed and then went onto say that the people from the southern state of Kerala are renowed for their non-entrepreneurial spirit!

He basically summed up your observations that this is a well educated state where job expectations are high and so being a small business owner is looked down upon. He said this was one of the very few areas he has come across where this is an also anti-entrepreneurial feel.

So even well travelled SME observers have seen this challenge in your state.

[Dr.Jose Sebastian]

Hi Samantha,
It seems i have to work hard to create model entrepreneurs in our society and this is no easy job. But this is the mission of our organisation.

Jose

[Dr.Jose Sebastian]

Hi Rob,

It seems this is a vicious circle and we have got to break this. Your observation about Gujarat is correct. I was there for more than three years. I am surprised that the case of Kerala is known everywhere.
About the "well educated state where job expectations are high", i will have another posting shortly.

Jose

[Dr.Jose Sebastian]

Hi Paul
Your suggestion on education is the right one. In fact the situation is fast changing. Now news papers publish profiles of entrepreneurs. But their image in the society as "exploiters of surplus value(thanks to our communist past)" still lingers. But through interventions it should be possible to change this.



Jose

[Dr.Jose Sebastian]

Hi Caroline

I understand your commitment. Keep it up and you will succeed one day that is not too far.

Best wishes !

Jose

[C.A.B.s]

Hi Jose

Thanks for you comment.

i will endeavour to keep up the good work, although sometimes i think it was not such a good idea to start in the first place :eek:

[bring27]

Thanks for the nice info.