SMEs and family businesses have created wealth around the world. Entrepreneurial thinking and leadership are main features for the growth of family businesses. Family businesses are tradition-bound and multi-generational business organizations. Family businesses have some added advantages such as having more established relationships in the market and transfer of technology and knowledge from one generation to other. Asia-Pacific region is dominated by family businesses but many of them do not survive beyond second or third generations. Family businesses which survive beyond third generations, majority of them are in traditional mode of business and operations and lack growth potential. There is a need to pass on the entrepreneurial leadership in family businesses across many generations and not limited to one or two generations. Entrepreneurship can play important role in addressing the risks family firms face in the long run.
There is also need of well thought succession planning to avoid the conflict and leadership crisis in the family businesses organizations. Family businesses also need to incorporate features and sprit of corporate entrepreneurship in their organizations. It is vital to understand how growth and performance vary across generations. Generational influences on opportunity recognition in family businesses are very crucial. These are the important issues of family businesses entrepreneurship for Asia Pacific EDI and being addressed in its programmes.
Another category under SMEs Sector is new venture and star-up entrepreneurship which focuses on individuals who detect opportunity and engage in starting new businesses. Process of globalization has contributed to an increasing number of new venture and start-up businesses world over. Asia-Pacific Region has emerged as leader in new venture and start-up entrepreneurship in the 21st century. Role of angel investors and venture capitals are equally important for new venture and start-up enterprises. An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debtor ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital, as well as to provide advice to their portfolio companies. Venture capital is financial capital provided to early-stage, high-potential, high risk, growth start-up companies. The venture capital fund grows by owning equity in the companies it invests in.
There is always a need to be equipped with innovation for new venture and start-up enterprises into competitive environment. Launching new ventures helps develop the critical skills to identify new business opportunities and transform them into profitable companies.
Asia Pacific EDI has a strong commitment towards its thematic area of SMEs entrepreneurship in which it continuously works through its programmes of training, academics, research, publications, project management and consulting.