Transfer of Entrepreneurial succession in family business

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The main objective of this research proposal is to analyse how the entrepreneurial activity of family businesses continue over generations. The transfer of vision, reason and the extent to which it converts into entrepreneurship across different generations of the family business area will be critically analysed.

Research Questions

Rationale

Many articles have identified few issues that come up when a business is given from the owner to its next generation. This research proposal will examine the background of developing family research and project found research about succession. The continuation of innovation and entrepreneurial behaviour from one generation to the next has been interpreted as entrepreneurial succession. It is necessary to perform further research about the management and strategic planning process of entrepreneurial succession.

Fletcher observed that there is an underdeveloped important research area about the overlap and bond of entrepreneurship in family businesses. It can be demonstrated by a founder transferring his/her goal to the next generation through the process of succession, keeping in mind the successors primary vision for the betterment of the business. Hoy and Verser stressed to perform further research on members of the family receiving the vision of the founder.

As outlined earlier, despite having literature about succession issues available, the integration between entrepreneurship and family business literature is lacking. Family operations are known to be unique and feature succession processes. According to the studies of Davis, there is a certain positive moving force family businesses possess towards entrepreneurial activities. However, stability of the enterprise and perpetuity could possibly result in expansion and development of new economic sustained investment goals. With further research, discussions and analysis, family business will be strengthened.

Questions

This research gives a clear understanding of the relationship between generational entrepreneurship and the link with family businesses. It shall be expressed on theoretically as well as empirically. The primary reason to observe family businesses is because majority of businesses these days are owned by families. The following questions have come across due to the obvious breach in family business literature.

What guarantee does a family business have that entrepreneurial activity shall continue over generations?

Are the current leaders threatened about the upcoming generations being more entrepreneurial?

Is there a possibility to learn from the positive experiences demonstrated in family businesses through their succession process?

The above questions are all linked towards the succession inquiry of family business.it focuses on the importance, purpose and the vision of entrepreneurship. The last question focuses on how an individual can learn about the process of succession, problems involved, issues concerned in family businesses. It hardly emphasises on appreciating the family business positive aspects.

Literature Review

The accustomed influences of ambitious businesses absorb the action of an individual or a family that accept an ambition and usually acquire agnate values. For a family business, the literature demonstrates that values ​​are fundamentally agnate and may be less of an obstacle to the construction of a team of people with altered ideals. However, the access of the founder may actuate how much they are willing to permit outsiders to participate in the business, while Cowling and Westhead (1998) argue that there could be a delay in family businesses if the administration of the family is reluctant to raise alien funds due to the fear of losing family control.

Although there are abounding positives in accepting the business of your family, there is an affirmation of threats to the model. Lansberg (1999) expresses an accepted affair to be dreams not actuality coinciding amid spouses, ancestors and added members of the family. This can advance to acute animosity that can balloon to the apparent and present as resentment, argument and abysmal regrets. The statistics of ownership for the intergenerational family businesses also possess threats. According to Smyrnios & Dana (2007), 3/4th of businesses investigated are usually family businesses with the greater part being the first generation, further on halving to the second and third generation. This demonstrates that there is a reduction in family intergenerational involvement. This pathetic agenda is of great concern to family businesses, and in aspect black accustomed that the capital blackmail to the business may be the ancestors members.

Davis can be accustomed as the first to bring forward the succession of entrepreneurship. He considers the entrepreneur as an important being who not alone can innovate and handle risks, but observes that the anew formed alignment is successfully functioning where the administration action can be given to others.it is without further doubt, He honed in the family business to research the arising issues of business succession when he saw the family as the most stabilized yet standard unit of social alignment in traditional society. It is this aggregate of family business, succession and entrepreneurship that lead us to the connection of this study.

One of the abounding problems of a business is to recreate their advantage over competitors to overcome delay or disappearance. The entrepreneurship relationship with family business turns out to be amusing when observed in the ambience of a succession process. Keeping the ambitious spirit beyond generations is a main concern. The vision and entrepreneurship turn out to be alike based on the artistic and innovative aspects of each.as observed by Schwass, the preparation of the next-generation leaders have to be adjusted as a way of thinking and a goal that is implemented over a period of time. The reason being families increase quickly, boosting up the number of owners and stakeholders and altering market conditions need continuous adjustment and renewal. The vision of the business should be developed, implemented and completely altered by generations that have been/are successive to bring about growth and provide the business with the sense of ownership. The future leaders should be viewed as powerful individuals and recognized as entrepreneurs for the betterment of the family business growth.

Schwass divided the family business into three categories. The family business that is transitory would be the first. This category of family business fades off early in the second generation. A Mere example of this type of family business is a business that does not have the ephemeral from a single business to a collective family business. Basically a business that does not have a proper value based vision. The next category of family business would be the type of business that goes on for generations over generations but has to go through delay or no growth. This is known as preserving or maintaining family business. Usually these types of business occur in farms. The category that is the most appropriate to this proposal research would be the entrepreneurial business. Unlike the above ancestors businesses, the ambitious family business has added complication due to a substantive view that family associates gain certain benefits by preserving the business together. This type of family business is a solution to the type of people who consider there is no future for their type of family business. Entrepreneurship abstract focuses on the start-up of the business and tends to avoid the hypothesis that the administrator accordingly goes through retirement and needs to give the business to a successor. It is necessary in the abstract review for an understanding of circuitous and activating attributes of an entrepreneurial succession in family business. It is also necessary to understand the family changes, founder changes, and company changes over time.

Methodology

This section can be subdivided into three sections, philosophical, methodical, and the research contribution. The first part I am going to analyse would be the philosophical. This research will be philosophically interpretive. There has been an access in the social sciences for qualitative analysis but under the research of entrepreneurship it has been represented below the mark according to Hindle. A qualitative access is applicable to entrepreneurship as well as family businesses at a level of methodology. Family business analysis can also be related to this. There is a necessity to utilize qualitative methods to a greater extent in the analysis of entrepreneurship. MacMillan (1988) performed a review which exhibited that in the analysis of entrepreneurship, the qualitative methods were lacking. The apathetic advance in analysis has been pretty disappointing as it addresses problems of casualty to entrepreneurship.

The challenges in the future and the research of the model used in the analysis of entrepreneurship will be methodology which serves to be explanatory, driven theoretically, and multiple methods utilization. Usually in the history of methodology analysis, surveys, interviews, descriptive, case studies, etc. were recommended. The perspectives of interpretation are highlighted through qualitative analysis as the knowledge to borrow from various disciplines.

A qualitative researcher is given many added analogies; they are referred to as filmmakers, manufacturer of blankets or an individual who gathers images into a collage. On the other hand,

Quantitative research don't have a subjective approach, they tend to have more of an objective approach. It carries the view of figures, reality and measurements in a positive manner.it can also be said that few of the objectivity have a possibility to be presumed when analysed qualitatively, although there is a tendency to be more indulged by the researcher on the subject, resulting into the objectivity lacking.an inquiry that is interpretive in nature is required for a sustainable process like succession in entrepreneurship. It exposes a certain depth.as mentioned earlier, the need to borrow from various disciplines needs to be revealed as it is overlapping and intersecting.eg. Business run by family overlapping and intersecting entrepreneurship, family businesses clashing with succession issues, and most of all entrepreneurship and succession. The analysis in which the research will be conducted is an important part to be considered.

As stated above, clearly there is evidence of problems, issues, difficulties, conflicts, etc. in businesses run by families from the literature and also suggested through the tradition that is being analysed, rather than investigations into what is performing well. This in return has resulted into the inquiry which is appreciative in nature. This is a good type of inquiry to choose because it evaluates the firm in a future minded way. According to Whitney & Stavros, It is assumed that each firm has its strengths and sections that function well, and that through this type of research, positivity can be created in the firm. Further on, discussions shall be held regarding the strategies that are utilized in the inquiry.

Interviews are considered as a crucial source to abstract information of such sort. There are two types of tasks that are a must to carry out in the process of an interview according to Yin.The first type would be to chase a band of inquiry, which would be an inquiry that is appreciative. The second type would be to ask real questions in an impartial manner which is necessary for the research. The interview questions be open and encourage debate unsolicited.one of the advantages of collection of data through the utilization of interviews is that it concentrates mainly on the topic concerned and is insightful. However, the disadvantage of using interviews as a mode of data collection is that if the questions concerned are not well framed, there is a possibility of it being inaccurate due to inadequate specification or artlessly the interviewer apprehends exactly what the interviewee says. Alongside, Historical data shall additionally be collected by the process, especially to award out the business and its founder history. Potential successors or founders are the main people the interviews are proposed towards. It serves as the studies main contribution.

The contributions that tend to be practical include comprehending the system of a family business that is entrepreneurial in nature. Detailed research and recommendations performed explaining the succession overlap, entrepreneurship and family businesses. Also it provides a body of framework for the family business.

Ethical issues

Interviews are very useful for the process of collecting data despite there being a disadvantage when it comes to the inaccuracy and researchers prejudice due to poor retrieval. Interviews have a similar way of consent just like the focus groups, but there is an altered dynamic when the process if facilitated.it will be a formal consent which shall be performed through an agreement that is written in form. This written consent agreement shall identify the extent and limitations to interview these people. Audio as well as video recording shall be performed of the participants, which consent shall be taken. The family business analysis shall be divided into four categories. The first would be the consent that is informative. This type of consent involves the voluntary participants agreeing to have the information completely open and in full. The second consent would be the way information is extracted from the participants; under no circumstance should it be gathered by means of deception or any sort of misrepresentation. The third category would be the respect for confidential matters and the uphold of privacy. Although there is a slight hitch to this; Privacy protection would be pointless if there is no accordance on what is private and what is accessible. The last category would be the necessity to have a certain assurance that the information being provided is accurate and has not been omitted, fabricated, or any of the materials are fraud. These four categories are applicable to data collection and observation techniques as well. A good example would be observation performed on the site with no script, it results in information being interpretive and it solely relies on information being gathered through regular note taking. In such a situation, accuracy can be a drawback as there is no immediate note of real time circumstances.

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