July 9: In a changing scenario where transnational corporations outdo domestic enterprises with their financial muscle and managerial expertise, a bit of professional exposure for family enterprises will do a lot of good. Indeed the small family enterprises and household industries have always had a niche in the domestic market but find it daunting to face up to the challenges of a changing world. To fill the vital lacunae, the Family Managed Business (FMB) management programme introduced last year by the S P Jain Institute of Management & Research, Mumbai, is now ready with its first set of trained entrepreneurs. The first batch of 16 students are mainly from small enterprises with a turnover of less than Rs 100 crore. Entrepreneurs enrolled were from the House of Vaidyanath, Lawrence & Mayo, Kolsite Machines, Hanuman Foods, among others.Says Professor Srinivas Rao, course co-ordinator, ``It has been observed the world over that the success rate of small enterprises is very low. The objective of startingthis programme was to help these businesses grow in a better way.'' This year the batch is likely to comprise 20 students with admissions being thrown open to MNCs and large corporations as well.
Adds Rao, ``In developed nations almost 75 per cent of the business is family based which is also true in India's case. This constitutes about 50 per cent of the GDP resulting in 40-50 per cent employment generation. Problems with small firms are different from those of large firms. Ownership issues in the family, management responsibility and emotions taught at the institute are an attempt to bridge this gap.''
While in a typical MBA course the students are prepared to face any eventuality and are imparted generic learning, in the FMB programme the only reality is the business/company of the student and everything taught is relevant to it. Says Umang Dinesh Kuwadia of Happy Home Developers and a student who enrolled last year, ``We try out the theory learnt on our business. The course helps in professionalisingour business which has always been guided by family issues.''
Spread over a period of 18 months, the students are made to interact with the faculty for about seven days in a month. The rest of the time they are implementing the theory taught at their place of work in the form of assignments. In fact, there are out-station students enrolled as well who come over to attend classes for those specific days of the month.
With a hefty fees of nearly Rs 3 lakh for the 18 month period, the programme is conducted in three phases of five to six months each. In the first phase, the course content is similar to the conventional first-year MBA foundation course except that participants continue to work in their respective organisations. Learning is through self-study and contact sessions. This phase is broken into three modules covering all functional areas with a common string of general management. There are 10 intensive contact sessions covering more than 250 class sessions.
In the second phase, the coursecorresponds to the second year of a conventional MBA programme but with a significantly higher emphasis on general management. It includes elective courses to meet the needs of the sectors that the participants represent. An in-depth look at family business requirements and innovative pedagogy are the highlights of this phase.
The third phase helps participants integrate knowledge and skills acquired in phases one and two and apply these to their specific business situations. Extensive field trips, detailed in-company studies and secondary research are required in this phase. These phases culminate in a thesis on the participants' family business developed through active interaction with the institute faculty. This thesis will thus be in the nature of research-cum-consulting assignment for the institute.
The FMB programme uses state-of-the-art interactive study material from reputed educational institutions including Harvard, MIT, Stanford and other leading universities. However, the emphasis throughoutis on Indian ethos of enterprise. The programme uses interactive methodology (including e-mail) for discussion and problem solving.
But then how is FMB really different from a conventional MBA? Says Rao, ``There are several aspects where it differs.'' These are: p Emphasis on general management: The programme will emphasise general management (including top management) issues to a greater extent than a conventional MBA programme.
Learning by doing and learning while doing -- participants apply theoretical concepts to their respective business situations and they do this even while they are going through the programme, not after they have received their MBAs. Accent on cultural issues: The programme addresses culture issues peculiar to family businesses and to the Indian business ethos. Self Development: Innovative techniques are used to help participants develop their personalities and their managerial potential. Sector specificity: The programme will be designed to take intoaccount sectors of interest to participants through electives, case studies etc. The concept of distance learning: To enroll, there is no admission test and eligibility conditions include a graduation degree with a mandatory business sponsorship or sufficient evidence of the participant's ownership interest in business.Thus, comprehension, application and integration form the backbone of the course content. There is a test at the end of each curriculum which is mainly objective in nature. It is mainly the assignments and projects which provide in-depth training and a diploma is awarded at the end of it. As Rao puts it, ``The course basically helps the participants in seeking solutions to their individual business needs.''
With FMB giving small entrepreneurs a platform to grow and learn, S P Jain stands committed to provide the right training and is at present enrolling students for its second term.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
