Twenty-two-year-old Subhashis Dutt, the fifth generation scion of the oldest business houses of Bengal, Mohendra Dutt & Sons, a pioneering umbrella maker, wanted to revive the languishing brand.

Subhashis, however, wanted some guidance to be able to draw up a strategy and infuse a fresh lease of life into the brand. Thinking a management degree would be best for that, he enrolled for a management education programme at one of the premium B-schools – XLRI in Jamshedpur.

“I am perhaps the first in the family’s history to join a management course. For me it was a means to discover my entrepreneurial ambitions and hone my management and leadership capabilities so that I can take the business towards a more successful future,” Subhashis said.

Equipped with this knowledge and applying the nuances of the business he knows , Subhashis, plans to improve marketing strategies and improve the brand image of the humble umbrella by making it more fashionable. He also plans to diversify into newer markets on a franchise model.

Subhasis is not alone. There is a rising demand for management education among third and fourth generation entrepreneurs to grow the family business.

According to K. Kumar, Apeejay Surendra Chair Professor of Family Business and Entrepreneurship, N.S. Raghavan Centre for Entrepreneurial Learning, Indian Institute of Management Bangalore, entrepreneurs look forward to understanding certain key issues, including the macro economy and its implication for their specific businesses.

They also need to bring themselves up to speed on recruiting and retaining talent and enlarging their social network and connect with a diverse set of people.

Management education programmes play a pivotal role in understanding these issues.

Need of the hour

Deepak Chandra, Deputy Dean, Indian School of Business (ISB), says unlike in the past, family hierarchy is not the only criterion for assigning business responsibilities; personal capabilities and skills are playing an increasingly important role in determining assignments. “It is therefore important for the young generation in business families to equip themselves with this understanding by undergoing a management programme and leveraging the synergies obtained by this new knowledge to evolve an even stronger long-term vision and strategy for their businesses.”

According to Ashish Arora, Founder & MD of HR Anexi, a consulting firm that focuses on family-run businesses, several studies show that entrepreneurship education makes a difference as it helps the present generation think global instead of being stuck in an operational rut. Education also gives them a better understanding of and access to resources.

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