ABSTRACT

75% of Indian family businesses have grown in the last 12 months; 84% expect to grow either steadily or quickly and aggressively over the next 5 years.56% of Indian family businesses feel the need to innovate will be a key challenge in the next 5 years.

A family-owned business may be defined as any business in which two or more family members are involved and the majority of ownership or control lies within a family. Family-owned businesses may be the oldest form of business organization. Farms were an early form of family business in which what we think of today as the private life and work life were intertwined. In urban settings it was once normal for a shopkeeper or doctor to live in the same building in which he or she worked and family members often helped with the business as needed.

In India there is a huge emotional connect in addition to the business aspirations. Families have established and running large businesses which are growing further. The commitment levels and the passion have been astounding. What makes it special is the relentless participation of the next generation in the existing businesses for further growth with a modern and a much matured professional outlook. Today the young leaders are on the block from the families of Ambanis, Jindals, Mittals, Adanis, Godrej, and so many other illustrious families. All this makes the Indian Family firms special. This pattern holds good for the SMEs and small partnership firms in the country. 

Key words: Inheritance Management, Unique management challenges, dominant institution, knowledge transfer processes.