Many of India’s largest and most celebrated companies today are nurtured by a group of promoters and family members who have drive, determination and a never-say-die entrepreneurial spirit backed by a sound culture and value system. Family businesses are recognised for their commitment, passion and dedication to the business. They are more likely to retain talent in tough economic times and take a long term perspective to the business. Stable leadership patterns and flexibility allows them to make faster decisions and also enables them to grow and reinvent from one generation to the next.
At PwC, we recognise the valuable contribution that family businesses have made, and will continue to make, towards the growth of the Indian economy, whether it is through increased employment, investment outlays, community initiatives or through contributions to the exchequer.
The significance of family-run businesses has grown and today, many family businesses have stepped outside their footprint to acquire companies in new industries and new geographies. As family businesses expand, they are faced with their unique set of challenges that revolve around succession planning, business continuity, conflict management and dealing with differing opinions across generations. The ability to attract and retain talent, who may perceive that career advancement, freedom and decision-making are the purview of family members, coupled with the need to professionalise informal management structures, pose significant challenges in the growth path of family businesses. It is imperative for family businesses to continuously upgrade skills, innovate and use digital and technology in their journey to grow, expand, and remain competitive. Read more about these in our Family Business Survey 2016 and PwC India Next Gen Study 2018.