Unit 4

Family and non-family Entrepreneur and Woman Entrepreneur

Role of Professional :
It is assuming the demands and responsibilities of professional authority by taking charge of
conditions which create and maintain client safety and trust in professional –client relationship.
Professional is acting according to norms of professional etiquettes behaviors and responsibilities
for a particular profession.
A professional should possess qualities like being reliable, competent, good communicator, follow
code of ethics, be organized, take responsibility and be accountable.
Advantages –
I. Develops appropriate boundaries in work place.
II. Encourages personal improvement.
III. Promotes and maintains account maintainability.
IV. Establish respect for authority.
V. Minimizes organizational conflicts.
Disadvantages –
VI. Limits creativity.
VII. High costs involved in maintaining professionals, their training and development.
VIII.Strict professionalism increases work place stress.
 Professional V/s Family Entrepreneurship

1. Family Management:
The family led businesses are been major contributors to the growth
of Indian economy. A bigger portion of the companies in India are
under the control of family personnel like Reliance, Tata group,
Infosys, Bharti Airtel and Bajaj, who stands as some of the well-
known examples.
Here are few major characteristics of the family managed businesses:
All the major policies of the company are determined by the
controlling family (which may or may not be in the favor of
shareholders).
They are loyal towards their own company. You’ll rarely find any case
where the CEO of a family managed business moved to take a job as
CEO of another company just because they were offering a higher
salary.
2. Professional Management:
Professionally managed companies are run by the professionals who are also
an employee of the company (not the owner). These professionals may or
may not have any significant stake in the company.
Here are few of the major characteristics of the professionally managed
businesses:
The professionals are in their position of chairman/CEO only as long as they
are able to complete their responsibilities. 
These professional managers can easily be fired by the board of the directors
if they do not meet the required company target. (One of the popular
examples is the Tata Son’s board of directors firing Cyrus Mistry as its
Chairman because of his issue with Mr. Ratan Tata.)
These professionals focus on performance and consistency.
The biggest disadvantage of professional management is that they can
readily leave the company for a better pay or perquisites offered by another
company.
Few best examples of professionally managed companies in India are ITC,
HDFC, HUL, L&T etc.
Comparison of Professional Management and Entrepreneurial
Management
 Woman Entrepreneur
The govt. of India has defined women entrepreneur as “An
enterprise owned and controlled by a woman having a minimum
financial interest of 51% capital and giving atleast 51% of
employment generation in the enterprise to women.
Women entrepreneurs are the women or group of women who
initiate, organize and operate a business enterprise.
There are two factors which influence the women entrepreneurs–
1.Pull factor – Includes desires of women to be independent, to
earn.These factors encourage women to become entrepreneurs.
2.Push factors – These factors compel women to become
entrepreneurs because of the circumstances or situations faced by
them. Ex. Poor family finances, family responsibility due to death
of husband or father, etc.
Challenges/Problems faced by women entrepreneurs –
I. No independence being a women.
II. Social attitude towards women and society.
III. Low literacy rate.
IV. Low risk bearing capacity in business.
V. Dual responsibilities of home and work.
VI. Financial constraints as they are incapable of raising
external funds.
VII. Marketing problems.
VIII.Limited mobility.
IX. Undeveloped entrepreneur mindset.
X. Difficulty in accessing resources.
XI. Lack of practical experience.
Role of women entrepreneur –
i. Dual role as homemaker and entrepreneur.
ii. Add to economic development of the country.
iii. Helps develop society.
iv. Provide large employment opportunity for women
workforce.
v. Provide motivation and promote women
empowerment.
vi. Balances regional economic development by setting
small businesses in rural areas.
vii. Improves women dignity and identity in male
dominated business environment.
 Measures to promote women entrepreneurship
In order to promote women entrepreneurship the following
measures have to be taken at different levels in the economy
1. Vocational education /special women training facility.
2. Entrepreneurship motivation at the school level
3. Access to information
4. Separate publications issued and distributed at subsidized
rates to create awareness.
5. Providing 100% finance without collateral
6. Access to technology
7. Formalities , rules regulations, procedures for women
should be made simple.
8. Setting up of women cooperatives.