Individuals who wish to join the corporate world are running after various kinds of formal degrees to pursue their careers. One of the most popular degrees that provide employment to a lot of students after completion is an MBA.
MBA stands for Master of Business Administration and this degree focuses on various specialisations like Marketing, Finance and Human Resource Management that form an integral part of a corporation.
There are many people who have the goal to join and grow their family businesses after completing their studies. Many of these individuals think that they can directly join a family business and become successful in running and growing the business.
Even though many businesses are run through experience, you can always get a formal education in the field of the family business and grow a business with a combination of the right techniques and practices.
A lot of institutes across the globe offer MBAs in family businesses. These MBAs focus on educating individuals from business backgrounds to learn the best practices to run a family business. The MBA degree offered in a family business is different from a traditional MBA degree in many ways. The traditional MBA degrees do not focus on family businesses as a primary subject and thus these two degrees ought to be different from each other. Let us look at some of the differences between the traditional MBA and MBA degree in the family business. ways. The traditional MBAs do not focus on family businesses and thus there are many differences between the two types of MBAs. Let us look at some of the differences between a traditional MBA and an MBA in the family business.
1. Employer V/S employee:
The traditional MBA focuses on various specialisations that make an individual ready for joining the corporate world as an employee. It polishes the skills required in becoming a trained professional in various corporate fields like finance and marketing. The individuals who hold an MBA degree in any of these specialisations tend to acquire the position of an employee in an organisation.
The MBA in the family business, on the other hand, trains an individual to become an employer. This degree helps an individual to become ready to fill the place of founders and CEOs of their family businesses.
2. Specialisation:
As already mentioned, an MBA degree generally focuses on certain specialisations like finance, marketing, operations or human resource management. These specialisations provide an understanding of a certain department of a business or an organisation.
An MBA degree in family business does not focus on one specialisation. It provides a complete understanding of the functioning of corporations and businesses. Such degrees focus on developing the complete knowledge of all the departments of a business. The MBA degrees in family business aim at providing a complete understanding of the workings of a business to an individual looking forward to joining his/her family business.
3. Decision-making roles:
A traditional MBA degree imparts limited knowledge to an individual that would only help him/her in filling the position of an employee in the corporation. These employees do not have any decision-making role in the companies they work for. They are only employed hired by the company to work for them.
In contrast to this, an MBA in family business helps an individual to train and become an important part of the decision-making team of his/her family-owned business. These individuals learn the skills to become important decision-makers in their family business.
4. Purpose:
A traditional degree in business administration is aimed at sustaining the needs of a corporation. These degrees focus on training individuals who would help these companies in building their business and operations while an MBA in a family business is designed for the purpose of the succession of a family business.
A traditional MBA is different from an MBA degree in the family business in different ways. These two types of MBAs are different in their purpose, curriculum and training. A family business must be succeeded by an heir or successor with the right skills which can only be achieved with the right formal training.
Kin and KIth focuses on imparting knowledge related to family business and succession in the family business to individuals who are looking forward to joining their family businesses. The courses offered by Kin and Kith help individuals in gaining the right skills and knowledge before joining their family business.
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