CHENNAI: The next time you fill petrol and the bunk owner give a lengthy talk on oil shock, OPEC (Organisation of the Petroleum Exporting Countries) and oil price administration; don’t be surprised as the owner’s observations would be a result of sound management education.
According to academicians, more than 50% of market capitalization in the country’s stock exchanges is accounted by family run businesses. “The level of participation of family business in India is very high. What we have seen is that once the baton has been passed to the second and third generation, an element of wavering and withering sets in,” Deepak Chandra, deputy dean, Indian School of Business said. The institute which launched its management programme for family business last year is looking to help the scions manage their business better. “The whole idea is sustaining the business and ultimately pushing for greater economic activity,” Chandra said.
Similarly, New Delhi based International Management Institute (IMI) would be launching its post graduate MBA programme in family business from September this year. “To take India to the 8% growth rate, we need MBA now for asset owners instead of creating just creating asset managers,” Dr Ashutosh Khanna, programme director, Global PGDM (MBA), family business, International Management Institute said.
While the course highlights of such family business programme would be similar to a general management programme, there is greater emphasis on functional strategies and financial planning and specialist courses in corporate governance and stakeholder rights which academicians point out will be confronted by Gen next business leaders as they expand and diversify the family business. “Formulation of projects on ground with a help of an academic mentor is an important aspect of our programme. One of our students whose family was into wholesale pharmaceuticals in Jorhat, Assam was able to diversify to veterinary medicines and cosmetics as a result of the project,” Professor Prabal Sen, chairperson, Entrepreneurship Development Centre, XLRI, Jamshedpur said.
Some other institutes like the Chennai-based Great Lakes Institute of Management (GLIM) have specific course modules in their executive MBA programme that focuses on family business issues. “We are targeting both first generation as well as second/third generation entrepreneurs through our programme,” professor RS Veeravalli, director, PGXPM (post graduate executive programme in management), Great Lakes Institute of Management said.