Authors: Garv Singh, Nikhil Saini
You must be wondering what this fancy term goes for? Well, it could be as simple as running your father’s ‘well established business’ or as complex as staking the whole generation’s wealth, goodwill, trust and much more.
Boon or Bane
Being a second-generation entrepreneur is a boon and a bane both at the same time. As you become the prince of your family business empire at the same time, all the vulnerability and competition with tight budgets would hit you hard on the face. First let’s turn our heads towards the bright side, since a second-generation entrepreneur gets an opportunity to lead a flourishing business, his\her abilities and actions are always under the scanner. Gone are the days of idolizing the next generation by loyalists, moreover running a well-established business which has already gained enormous amount of goodwill and huge customer base is bound to succeed, they might always be provided with the cushion to fall but on the flip side the first generation have to toil hard as they need to set up a business especially when the stakes are against them. 'Opportunity brings the responsibility' a start-up might be allowed to fail but for someone who receives the business in the legacy is not bound to fail at any cost, added to that they must lead their companies through a transformation that keeps the business relevant despite all the disruptive emerging technology and practices. Hence, if at all there is any extra that second generation have compared to the first-generation rookies then it is the ‘extra’ pressure to deliver superior results unfailingly!
The War (First Vs. Second Generation)
‘What is harder to begin a business or to grow a business, the conspicuous response is to set a business. For instance, Dilip Shanghvi, the organizer behind Sun Drugs, he began producing drugs 1982, with a venture of Rs 10,000. Today, Dilip is simply second to Mukesh Ambani on the Forbes India Rich list. In 2016, Forbes India valued his at $16.9 billion. Simultaneously, does it mean being a second-age entrepreneur is simple? All things considered, one is brought into the world with a silver spoon. In any case, the response would be a resonating 'hell, no!' from second era business people. Indeed, they may be brought into the world with a silver spoon, yet they need to make a point not to lose it. One of the most high-profile business families that have seen its fortune disappear is the Sungrace-Mafatlal family. The fall started in the second era when 'a progression of wrong decisions, strategic errors and the powerlessness to brave a material downturn prompted the defeat of a once-prosperous grasp of companies. Only a few family businesses survive beyond the third generation. The Forbes magazine offers a surprising expression. 'Short of what 33% of privately-run companies ensure the progress from first to second era possession.
Do Second Generation Fail In Continuing Legacy?
It might not be easy to keep up with the current goodwill and market USP's, the second era business visionary likewise needs to enhance and lay out his team. The team is made with the goal that he will actually want to appoint errands which would help in performing and controlling the cycle effectively. There is a constant need to stay updated with the technological developments and the latest trends in one’s respective domain. It is no longer possible to simply maintain the status quo and keep enjoying the riches of inheritance.
Success Stories
The emotional bond an entrepreneur shares with his/her family business can't be measured with data. The bond can take precedence and inspire an entrepreneur to brave all sorts of challenges and scale up the family business. So, let’s celebrate the second-generation entrepreneurship with few success stories.
“Before I joined, for years, we used to sell 50-60 bikes per month. When I took over, we started registering a 20-percent growth per month, and within four years, we were selling 250 bikes a month, higher than any other dealer in the country,” he adds. Today, Kanav claims that Jaycee is one of the top dealers of Royal Enfield motorcycles in India.
“Earlier, people used to buy jewellery as assets, but now people consider it fashionable to wear designer diamond and gold jewellery. Hence, my sister and I stepped into the business to cater to that niche audience and make products with international aesthetics,” Rohan Sharma says
“My father modified it and became the first in India to use such a machine to print textbooks, and that too in multicolour," he says, adding, “Since we used the modified printer, our costs were low. I realised I could print books which were affordable. I was inspired to start my own company by using such a model,” he says.
The Advice
The second generation of business owners of today must guide their organisations through a transformation that maintains the company relevant despite all the disruptive new technology and business models. The need to consistently produce greater outcomes is hence the "extra" that second generation entrepreneurs have over first-generation novices, assuming there is such a thing. Dynamic second-generation entrepreneurs are often the unsung heroes in the family business, building on the legacy of the first generation to develop a great family, not just a great business. With proper support, coaching and recognition, the second generation no longer needs to be considered ‘second best’.
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