Hyderabad: Indian family businesses, which have higher levels of emotional attachment from business leaders to their company, appear to be more resilient than their global counterparts and better positioned to sustain entrepreneurship, a global study of family businesses has found.
However, Indian family businesses are lagging behind their global peers when it comes to establishing structured family governance and involving women at senior management levels, according to the study, titled The Regenerative Power of Family Businesses – Transgenerational Entrepreneurship, which involved 2,439 family businesses 70 countries including 53 Indian companies.
According to the study, factors such as entrepreneurial orientation, socio-emotional richness and motivational leadership are key to family business resilience and regeneration.
The study was conducted by KPMG private company and the STEP Project Global Consortium, with the Thomas Schmidheiny Center for Family Businesses at the Indian School of Business.
“The good news is that Indian firms appear to be better able to defy the adage shirtsleeves to shirtsleeves in three generations, which may reflect India’s cultural fabric, which includes close-knit families and extended family members contributing to it.” contribute to the business,” said Dr Nupur Pavan BangDeputy Director, Thomas Schmidheiny Center for Family Enterprise, IS B.
“A larger proportion of Indian businesses are third- and fourth-generation-led at 25% and 8%, respectively, compared to the global averages of 14% and 4%, respectively. This is also an indication of the longevity of family businesses in India,” he added dr bang. Regarding the key aspects where Indian family businesses lag behind, the study found that while only 9% of Indian firms in the sample had a woman CEO, compared to the global average of 19%, only 11% of Indian did Respondents reported having a family compared to the global average of 24%.