Challenges Faced by Family Businesses in India
Family businesses have always been an integral part of the Indian economy and society. Largely founded on the joint family principle of ownership and management, their contribution has always remained very high. However, family business as a system has inherited an identity associated with features such as, non-professionalism, conservatism and poor governance. The fast-paced changes in business environment in the past two decades have altered this to an extent. Today family owned businesses are perceived as much more respected, entrepreneurial, growth driven and much better governed, contributing immensely to the country’s growth story.
Though family businesses account for more than 85% of businesses in India, yet there is paucity of knowledge about their ways of organizing and managing business in these rapidly changing times. The Thomas Schmidheiny Chair of Family Business and Wealth Management at the Indian School of Business conducted a comprehensive research study aimed to capture some of the key practices of Indian family business firms. This paper presents notable managerial and academic insights about Indian family businesses as revealed by the research study.