Entrepreneurship

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Entrepreneurship the family business

• I have a dream

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Background

• Family Business 1970s -1991
• Secondary school maths educator
• IBM SA 95-97
• 2003 till current. UJ Business Management Dept.
  Strategic Management, Small Business Enterprises
  and Corporate Entrepreneurship. Member UJ Ex
  Officio Alumni
• Current studies 1st year PhD in ENT.
  Entrepreneurship _at_ UP Dept of ENT.
• Reading, travelling and meeting people

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Overview

• Title
• Introduction
• Problem Statement
• Purpose of the research and study objectives
• Hypothesis
• Methodology Research design
• Findings
• Restrictions experienced during the research
• Conclusions and recommendations

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Introduction

• In March 1995, the government articulated a
  number of measures to foster an enabling
  environment in the White Paper on national
  strategy, focussing on the development and
  promotion of small business in South Africa.
  These include, but are not limited to
• Creating an enabling legal framework
• Streamlining regulatory conditions
• Facilitating access to finance

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Problem StatementBackground

• An investigation into the role of the
  family-controlled business (FCBs) or small
  business and its impact on regional development
  and growth

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Mom Pop Store
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The Waltons
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The Mars
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The Oppenheimers
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Entrepreneurial Performance
Entrepreurship
Starting point
Intrapreneurship
Corporate management
Small business management
Time
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Literature review

• Entrepreneurship is a way of thinking, reasoning
  and acting that is opportunity obsessed, holistic
  in approach, and leadership balanced.
• Families who are enterprising generate new
  economic activity and build long-term value
  across generations.
• Outcome? Transgenerational entrepreneurship and
  wealth creation. Timmons (2006)

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Hypothesis

• Ho 1 Small business entrepreneurship increases
  economic development
• Ha 1 Small business entrepreneurship decreases
  economic development

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Aims and objectives

• How does one identify the supporting environment
  for SMME's including (family businesses)?
• Why is it necessary to examine the impact of the
  family businesses on regional development?
• What are some of the key factors (cultural and
  institutional) affecting small family businesses?
• What are the constraints on efficiency,
  flexibility and growth of SMEs (including family
  businesses)?

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Methodology Research design

• A literature study was undertaken to search for
  definitions, interrelationships, viewpoints,
  principles, methodologies and other research
  findings
• Data collectionThe data will be collected from
  the various sources mentioned above. Thus the
  collection is non-standardised and uses a variety
  of formats
• Data analysisAnalysis is via the use of
  descriptions and the identification of concepts

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Findings.

• Families comprise the dominant form of business
  organisation worldwide and provide more resources
  for the entrepreneurial economy than any other
  source Timmons(2006)
• Families who are enterprising generate new
  economic activity and build long-term value
  across generations.
• Outcome? Transgenerational entrepreneurship and
  wealth creation. Timmons (2006)

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Cont.

• 1 Family Business - the biggest factor and making
  up a major portion of many economies.
• 2 The acute shortage of professional managers in
  the developing world.
• 3 Corruption-The pay-off culture that is the
  norm in many countries at present.

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Cont.

• Families still dominate the US economy and other
  countries worldwide.
• 60, gt24 million businesses, 6 trillion GDP and
  82 million jobs
• Italy 93
• Brazil 90
• SA GEM 2006

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Five roles families play in the entrepreneurial
process

• Formal .
• Family influence start ups
• Family corporate venturing
• Family corporate renewal
• Family private cash

• Informal

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Challenges for FCBs or SMEs

• Past Success
• Legacy value
• Less Hungry generation
• Leaders/founders balance risk of shareholders
• To remain entrepreneurial
• To shed unproductive assets
• Leaders communication of strategic planning to
  next generation- a waste of time

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Six dimensions FCBs or SMEs for teams

• Leadership
• Relationship
• Vision
• Strategy
• Governance
• Performance

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Key Factors for FCBs or SMEs

• Governance long term orientation
• Interlocking directories
• Social responsibility
• Corporate entrepreneurship
• Perceptions of Justice
• Altruism and agency problems

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How to enter the race?

• Entrepreneurial model UP

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A model of entrepreneurship (Maasdorp Van
Vuuren 1998720)
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Conclusions and recommendations

• In conclusion, empirical and theorising on the
  competitive advantage of family is expanding.
  There is a further need for theory-based research
  that explores this multifaceted organisational
  form

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Family buzinezz

• The place of the father in the modern suburban
  family is a very small one, particularly if he
  plays golf.
• Bertrand Russell

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Question Time
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Mindset and method for family Enterprising

• Institutionalise the opportunity seeking
  processes in the mindset and method of both the
  family ownership and methods

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Mindset and Methods Enterprising Model

• Habberson and Pistrui.

Financial
Family Enterprising
Acceleration
Mindset
Transgenerational
Ownership risk profile
Generational
Congruency path
Preservation
Operational
Entrepreneurial
Managerial
Methods Organisational Behaviour
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Family business in SA

• In SA the deveopment of SMME and family
  controlled firms (FCBs) would contribute to
  economic empowerment.
• The stimulation of FCBs sector could contribute
  to job creation.
• How? Act entrepreneurially

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How do enter this race?

• Entreprenrial mind for an Entrepreneurial society
• Patents and trademarks
• Follow the entrepreneurial process, opportunity,
  Innovation and growth.