A first-generation entrepreneur is the one who is the first one in his family to start his or her own business. It means he is the first one to try his hands in the field of business and has no one else in his family who also belongs to the business field or background. There is no backing from the family to this first-gen entrepreneur to support or guide his business venture.
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For such first-gen entrepreneurs, the majority of the time they don’t get any support or backing from their families. They are the first ones to plant the seed of business in their family. They invent and innovate each process and plan of setting up their business. For the second or third-generation entrepreneurs, everything is already set and they have to just run the business processes as they functioned earlier and innovate on the same to improve to get better results.
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One of the most popular Indian businessmen who was a first-generation successful entrepreneur was Ghanshyam Das Birla. He was the first one in his family to start a company in the early 1900s of operating a cotton and textile mill. By 1919, Birla also included paper and sugar production in his factory. By the time he passed away in 1983, Birla Group had become a multi-sector global company.
There are many challenges that come in the way of success for the first-generation entrepreneurs and it is because of these problems that many quit their business and join the service class to pay their bills. The first major problem is such businessmen don’t have any hands-on experience of doing business within their family or even outside if they are fresh college graduates. The second thing is the financial and legal complexities that come with running a business. The third problem with such businessmen is to raise capital funds and manage their cash flows. More time goes to waste by dealing with people and convincing them about their idea.
