A STUDY ON FAMILY BUSINESSES IN INDIA AND FINANCES- A QUALITATIVE APPROACH

Sethia, Rishabh (2008) A STUDY ON FAMILY BUSINESSES IN INDIA AND FINANCES- A QUALITATIVE APPROACH. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Family businesses are a very important organizational type as family's control majority of businesses around the world. In India, family controlled businesses account for 70 percent of total sales and net profits of the biggest 250 private sector companies. Family businesses are different from other businesses because of its unique setup and they play an important role in Indian economy.

This dissertation attempts to find the various available sources of finance for family businesses in India and the difficulties that they face in raising or getting funds. The decision making process related to financial issues in the family businesses also falls under the research preview of the dissertation.

The dissertation tries to build an understanding of family business and financial issues with the help of case studies and available literature on the topic.

Qualitative research method is used to achieve the desired objective. Questionnaires are used to build the case studies and collect relevant data. Viewpoints of an independent analyst are also compared with the finding of the research so as to arrive at a valid conclusion.

The single most important source of fund for Indian Family businesses is own finance and they go for external financing only when required. The second most significant source of fund is bank loans. The informal credit market is also an important source of short term fund requirement but it is mainly confined to small scale businesses. Some of the sources of funds are unique to a particular sector which may also play a significant role in growth and development of businesses in that sector like trade credit and interest free instalments from machinery suppliers in jems and jewellery industry.

The selection of financial source depends upon the scale of operation. The financial sources used by medium scale businesses are different from those used by small scale industries. The dissertation also finds that financial decision making process differ from organisation to organisation depending upon the type of management system. The decision making process in family firms following centralised management system is different from that in decentralised organisation.

Item Type: Dissertation (University of Nottingham only)
Keywords: Financial Intermediation system, other sources of finance, financial decision making process, Family Businesses in India, Qualitative Research.
Depositing User: EP, Services
Date Deposited: 02 Feb 2009
Last Modified: 19 Oct 2016 02:16
URI: http://eprints.nottingham.ac.uk/id/eprint/21959

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