MITCON to mentor family run businesses; to begin training, support programmes

Though 85% companies in India are family-run, employing about 57% of the Indian workforce, just 13% survive till the third generation

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Pune based entrepreneurship development organisation MITCON-Academy for Global Entrepreneurship (MITCON-AGE), an initiative by MITCON, is starting training cum support programs to help such family businesses sustain, grow and take themselves national and global.

Though 85 per cent companies in India are family-run, employing about 57 per cent of the Indian workforce, just 13 per cent survive till the third generation. A third of business families disintegrate because of generational conflict.

Vinod Paratkar, MITCON-AGE said, Starting a business is a family decision, with the entire family is involved. As the business grows, family members start leading responsibilities. Managing the business takes lot of attention and the members tend to ignore critical points that have potential for future conflicts and break ups. MPFB will help identify these points and plan for the future, so that the businesses not only grow, but also go global. Indian family businesses contribute 27% of the country's exports sales and 20 per cent of country's GDP. " MITCON-AGE is Management Program for Family Business (MPFB) is customized for members of existing family business, non-family managers of family business, professionals looking to take up a career in family business as a manager or mentor and those looking to start family businesses.

MITCON-AGE will not only train, but also mentor family businesses manage themselves for the future. Pradeep Bavadekar, managing director, MITCON said , "Internationally, family businesses plan for such things well in advance. In India, because of our social structure and value system, we tend to play down these things. There are many examples where family businesses broke apart because succession wasn't planned, or closed down because the next generation wanted to pursue something else, just two of the many problems faced by family businesses." The year-long Management Program for Family Business will begin in August 2013 at the campus of MITCON-AGE in Pune. According to CII Family business Network family businesses form a backbone of the Indian economy with gross output of 60 per cent of GDP or about 90 per cent of India's industrial output.