HIMALAYAN INSTITUTE

OF TECHNOLOGY
DEHRADUN
ASSIGNMENT 2 – FAMILY BUSINESS AND ENTERPRENEURSHIP
SUBMITTED BY – Anshika
STUDENT CODE – 23125708
COURSE- BBA 1st semester
SUBMITTED TO – Mrs. Shagun Saroj
FAMILY BUSINESS AND
ENTREPRENEURSHIP
concept

Encouraging &
change in family
business structure
system

How was family Hindu

& shareholder's undivided
relationship family
CONCEPT
''As an entrepreneur , you're talking calculated risks , you're trying to do things differently than they have ever been done before '' -
Richard Branson
In the universe of micro and small enterprises , entrepreneurship ,family business and self – employment are closely linked together . At
the very least , the entrepreneur is an independent spirit and a risk taker . At the very best , he or she is a creator and innovator . While
few owner – managers of family business could ever aspire to emulate Richard Branson's spectacular success , most could justly claim
the distinction of being considered as true entrepreneurs, irrespective of the place they occupy along the entrepreneurial spectrum .
The concept of entrepreneurship has wide-ranging implications and has been the subject of numerous discussions and as many
definitions . No single definition adequately encompasses the subject with all its ramifications . Entrepreneurship may be defined as the
process by which a unique package of processes and skills are harnesses and implemented to successfully exploit a given business
opportunity . The major characteristics most frequently used to define the nature of true entrepreneurs are ; (1) risk-taking ; (2) commercial
initiative ; (3) the ability to create new technologies , products and services ( creativity ) ; and (4) the ability to develop new ways of
handling systems , products and services ( innovation ) .
Baumal (1993:2) defines the entrepreneur as :
''At once one of the most intriguing and one of the most elusive in the cast of characters that constitutes the subject of economic analysis
….. in the writing of classical economists the appearance of this important figure was frequent , but shadowy , without clearly defined form
and function .''
This paper looks at the role that family businesses play within the local framework of an entrepreneurial and economic culture that, while
expressing a need for enhanced entrepreneurial and economic culture that , while expressing a need for enhnaced entrepreneurial activity
, often penalises entrepreneurial effort through unwarranted bureaucracy and lack of understanding of the day-to-day realities of business
management experienced by micro and small entreprises that form the backbone of business activity in both developed and developing
countries .
STRUCTURE OF KINDS
FAMILY OF
BUSINESS ENTREPRENEURSHIP
 HINDU UNDIVIDED FAMILY (HUF)

Hindu Undivided Family (HUF) is treated as a 'person' under section 2(31) of the
Income-tax Act , 1961 (herein after referred to as 'the Act' ) HUF is a separate
entity for the purpose of assessment under the Act.
Under Hindu Law , an HUF is a family which consists of all persons lineally
descended from a common ancestor and includes their wives and unmarried
daughters. An HUF cannot be created under a contract , it is created automatically
in a Hindu Family.
Jain and Sikh families even though are not governed by the Hindu Law , but they
are treated as HUF under Act .
HOW WAS FAMILY & SHAREHOLDERS
RELATIONSHIP
Family businesses are increasingly experiencing a lack of a formal , fluid channel of communication and disordered
communication within their company . They encounter decentralized information and a lot of work in completing
reports . This leads to difficulty managing meetings and completing their assigned tasks.
Based on a study from IESE , launched earlier this year , we decided to highlight some of the most relevant points
concerning family businesses that influence the way they communicate and their relation to shareholders.
Family businesses represent 85% of all Spanish businesses and create 75% of private sector employment , based
on data from the Instituto de Empresa Familiar en España (Institute of Family Business in Spain ).
Nearly 80% of respondents considered that the existence of formal communication mechanisms promote family
involvement within the business , strengthening the evolution and the growth of a company , helping them convey
family values , contributing to the continuity of the company and improving the quality of family relations .
Almost 60% of respondents said that in their companies there was no formal communication mechanism intended
for family businesses. In the majority of cases , there are no established processes, nor tools , nor channels to
communicate with stakeholders of the company .
64% of family respondents enjoy family meeting in order to convey corporate information . The majority of
respondents acknowledge that the communications with partners and shareholders is not as fluid as it should be .
 ENCOURAGING & CHANGE IN
FAMILY BUSINESS
Innovation is the key to driving business success . In today's increasingly
ceowded business environment , it's key to staying cometitive . Whether it
involves developing cutting edge products and services , creating a new process,
or simply remaining flexible to adjust to the changing needs of your client base,
businesses must continue to innovate and evolve for their own survival . One of
the biggest challenges that family businesses face with regard to innovating is
striking that healthy balance between the ffamily's business traditions and
heritage , with the need to remain nimble and open to change in order to improve
the business profitability and sustainability . Change can be uncomfortable , but
it's often necessary to meet the changing demands of the marketplace.
THANKYOU