Leaderships Lessons from great family business

Isn't it quite common to hear in Indian families or culture that my son or grandson will carry forward my destiny however this is the case in the Business as well. Do you ever know that leadership from great family businesses ratio is declining. On average  30% businesses last into the second generation, 12% businesses last till third generation and only 3% businesses last to the fourth generation which is occurring due to a lot of reasons.

The first important reason that is found out by the professors is that these businesses don't last long because of the changing CEO. However, it affects the business because everyone has a different perspective for doing business which brought that Italian auto group have gone through five CEO and three chairmen in the last two before bringing the outsider to lead it. This shutdown of family businesses is that after one generation the market value of shares of the business start declining by the average of 60% which is drawn by a Professor of Hong Kong where he took the data for 214 businesses for Taiwan, Hong Kong and Singapore. 

It has been seen that family businesses have a great effect on the overall global economy where a study explained that on average if a family business hires 60% employees and on a global level this employment increases to 78%. 

The problem faced by the people is that before entering into family business many things need to be taken into consideration for instance uncertainty about levels of autonomy, hidden agendas, lack of dynamism, and the potential for nepotism and irrational decisions.

 Good governance is an obvious first hurdle for family businesses that want to hire and keep the best people and compete successfully over the long term. Committing to sound decision-making and management practices is thus essential, whether a company is publicly traded, partly owned by professional investors (such as private equity firms), or completely under family ownership.

But the family business has its own benefits and disadvantages as well. For instance, there are Flexibility in working hours, commitment, stability and decreased cost benefits as well but it lacks Nepotism, conflicts in the family and many more. However, there are key considerations that should be kept in mind. 

While making succession planning for the family no conflict of the family should be mind because it's the biggest hurdle that disturbs a lot of business. While making planning it should be noted which business will grow or not ( means will it last up to three generations or not ) and one should prepare the strategy for different period of time.

                                                         - By Pooja

                                                                       (WIB Member)

 How Blockchain empowers Women in the Middle East

Across the globe, women have been sidelined with regards to funds and innovations, and the Center East is no exemption. Fortunately, things are changing, and the web is giving new freedoms to learning and incorporation.

Blockchain offers a clean canvas in the Center East: another industry where the standards have not yet been completely characterized and where ladies can reach out and make it their own when given the right devices.

It's a well-known fact that in spaces of the Middle East, ladies have undeniably less monetary independence in the public eye than men. A 2020 McKinsey report on "ladies at work" in the Middle East observed high disparities continue, most strikingly in legitimate security and monetary incorporation with countless ladies in the area remaining unbanked.

The circulation of information is more populist these days, as anybody with admittance to the web can figure out how to code or exchange. Decentralized money (DeFi) can assist with evening the odds with regards to ladies' accounts, eliminating the requirement for delegates and dependence on unified foundations that frequently neglect to protect their cash. Advanced monetary forms have been making advances in the Center East, with Dubai's first crypto posting happening this year, just as the Bank of Israel's preliminary of a computerized shekel. In creating markets, crypto offers residents a method for controlling their cash without depending on the overall difficulty or flourishing of their public economy.

In numerous spaces, women are inconsistent in both the eyes of society and the law, which is compounded by obvious biases in daily existence. Association for Monetary Co-activity and Improvement (OECD) discoveries show ladies make up most of the laborers in medical care and social administrations areas in the Center East and frequently assume the part of homemakers and parental figures.

Coronavirus, especially in developing business sectors, has intensified a generally existing sex lopsidedness, with ladies undeniably bound to encounter financial aftermath from the emergency because of their monetary status and callings. It is irregular characteristics like this that mirror the need for elective income streams and instructive pathways for women.

  - By Diksha

WIB Member