Thursday, May 19, 2011

Familipreneurship for Enterprising

Creating new enterprise through Familipreneurship for effective and sustainable poverty reduction and economic development of less or under developed country.
Despite vigorous multidimensional efforts worldwide poverty is still the biggest enemy of man kind. Existence of poverty paves the way for several consequent problems which affect all sphere of life through out the world. In many countries like Bangladesh prevalence of poverty is increasingly alarming. Ensuring poverty reduction will enhance all other development process and eliminate many other problems. Our experience of overall poverty reduction is very depressing. Dream of sending poverty to museum begin to shrink; especially after starting contemporary controversy of microcredit, recognized as most powerful tool to fight against poverty, is deepening this desolation.
Promotion of venture/enterprise is one of the tested and trusted ways for economic growth and development as well as wealth creation for the future generation. Economic empowerment impacts poverty directly. Many countries are doing well adopting this policy in their national economic development agenda. But most of the efforts are towards existing, promising and profitable venture/enterprise, Effort of creating new venture/enterprise is very poor even in the case of sick venture/enterprise same condition. As a result there is no institutionalized system of creating new venture/enterprise. Seemingly finance capital is the key element of creating venture/enterprise but this view does not agree with financial statistics of investment portfolios. Our experience shows that finance capital alone can’t create enterprise, even it is not the most important element for enterprising. Inadequacy of land, labor, capital, technology, knowledge and entrepreneurship are the obstructs for enterprising.
Considering this in mind family (organization of one or more individuals) is more capable rather than an individual to create a new venture/enterprise. Just as individuals have brains and beliefs, families (organizations) have “cognitive systems and memories . . . world views and ideologies” (Hedberg 1981). Family business is not a new practice rather it is our indigenous heritage. Globally family business occupies substantial share of economic and other sector, some are dominating through couple of years. Family business at the international level maintains a dominant role within the most advanced economies. The percentage of enterprises owned or controlled by families around the world is more or less between 65 and 80%. On average the family enterprises around the world, considering the first eight European countries, are equal to 60% of the total of the largest quoted enterprises (Devecchi, Fraquelli 2008).
Family is the oldest, largest in number, longest in existence organization of human history built on Familiness. Families are unique among social systems in the way that they are permanent, based more on obligation than contractual agreement, and membership is often determined by biology. Future generation carry on their ancestors knowledge genetically. Familiness is so powerful, effective and long lasting that family as an organization through out history without any oral or written constitution or standard norms. Richest element of Familiness is its matrix relation among the family members which combines financial, human, physical, social, knowledge, cultural, natural and intangible capital and blended and optimized by interaction of each individual with other and within own family. Because in family enterprise family members are active simultaneously in the family issues and the business affairs, so they significantly influence knowledge generation, integration and transferring processes. In family firms they are the result of the family specific factors generated by idiosyncratic practices that recombine and manipulate knowledge and their peculiar configuration (Le Breton-Miller 2004). Core rigidity of a family makes up physical systems, knowledge and skills, managerial systems and values for organizational survival and growth.
Familipreneurship is the power and capabilities of an individual to combine, transform and utilize personal and family wealth and scattered resources into capitals. Knowledge and skills of Familipreneurship is transferable through generation to generation. Family edutainment may be best choice as an approach of Familipreneurship education. The complexity regarding knowledge management in a family environment may be easier in the generational transfers, where knowledge migration from senior to junior is oriented to the minimization of know-how loss. The promotion and restoration of traditional collective family practices and values through Familipreneurship will create a natural environment of transferring indigenous knowledge, skill and important lesson from their past experience. This courageous collective effort will enable them to be blended together to reach their goal which will accelerate the whole enterprising process as well as economic development.
Family business research draws attention to better understand continuity and succession as well as expansion of existing business, particularly investigates resource shedding and reconfiguration. Entrepreneurship literature has focused on the creation of new venture/enterprises, especially through new endeavor, innovation and renewal within and outside the present organizations. But perspectives, features and forms of entrepreneurship in context of creating new venture/enterprise/venture by family in a growing and less or under or least developed economy where inadequacy of resources is strongly prevalent are not well studied or missed or ignored. Especially in the case of using family enterprise as a tool of poverty reduction is remained untested.
Now its the high time to explore the traits of entrepreneurship in context of poverty, family and creating family enterprise through a single lens, and shaping a framework for further study & research on Familipreneurship to better understand its potentialities and effectiveness as well as gaps and loopholes.

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