Family-Owned Businesses in India
ARGUMENT
With globalization and modernization though there are lot of opportunities for the Indian business firms to grow but at the same time these firms are facing a set of challenges because of the changing market conditions. The argument here is weather these family firms would be able to survive beyond their third generation or not.
HISTORY
The history of Indian family business takes us back to the time of independence in India. The reason Indian family business started in 1890’s was to promote import substitution and attain economic freedom from the British. The idea of Indian family-run business has always been revered, respected, and protected in India but the argument here is to understand how the family’s involvement in business is and also how the family together with the outside professionals manages the business for generations.
INTRODUCTION
Family owned business is a business in which the control lies within the family members. It’s kind of a complex setup where the family members has to be involved in business as well as family and these two systems may overlap which might create further complexities. The Indian family business is the backbone of the Indian economy. With globalization it has become very difficult to understand the challenges, and complexities for continuous growth and prosperity of the Indian family business. There are certain existing differences between family and business and they are found to split up as they grow, and very few of them survive beyond three generations.
INDIAN FAMILY BUSINESS
Most Indian businesses are family based. Families control over 80% of the family business. They employ around 50% of the world workforce. They contribute around 40 to 50% in the world GNP. But the sad picture is that only 15-20% of the family business survives till the third generation. Family is a social institution and they are interesting because of the combination of two entities Family and Business. With
With globalization and modernization though there are lot of opportunities for the Indian business firms to grow but at the same time these firms are facing a set of challenges because of the changing market conditions. The argument here is weather these family firms would be able to survive beyond their third generation or not.
HISTORY
The history of Indian family business takes us back to the time of independence in India. The reason Indian family business started in 1890’s was to promote import substitution and attain economic freedom from the British. The idea of Indian family-run business has always been revered, respected, and protected in India but the argument here is to understand how the family’s involvement in business is and also how the family together with the outside professionals manages the business for generations.
INTRODUCTION
Family owned business is a business in which the control lies within the family members. It’s kind of a complex setup where the family members has to be involved in business as well as family and these two systems may overlap which might create further complexities. The Indian family business is the backbone of the Indian economy. With globalization it has become very difficult to understand the challenges, and complexities for continuous growth and prosperity of the Indian family business. There are certain existing differences between family and business and they are found to split up as they grow, and very few of them survive beyond three generations.
INDIAN FAMILY BUSINESS
Most Indian businesses are family based. Families control over 80% of the family business. They employ around 50% of the world workforce. They contribute around 40 to 50% in the world GNP. But the sad picture is that only 15-20% of the family business survives till the third generation. Family is a social institution and they are interesting because of the combination of two entities Family and Business. With
References: http://www.thehindubusinessline.com/todays-paper/tp-opinion/the-great-indian-family-business/article1669276.ece http://www.encubeindia.com/downloads/indian_family_businesses.pdf http://asiasociety.org/countries/traditions/indian-society-and-ways-living?page=0,0