'Only 7 per cent of Indian heirs feel obligated to join family businesses'

DESPITE most Indian business owners expressing strong trust in their children's ability to manage family wealth, only 7 per cent of Indian heirs feel obligated to take over the family business, a new report said on Tuesday.

- 

According to HSBC Global Private Banking's new report, 88 per cent of Indian entrepreneurs have confidence in the next generation's ability to handle family wealth.

However, 45 per cent of them do not expect their children to take over the family business showing a growing openness to alternative career paths.

Sandeep Batra, Head of International Wealth and Premier Banking at HSBC India, said that family businesses in India are managing to balance tradition with change.

“There is trust in the next generation to uphold the values of the family business, but at the same time, open communication and structured succession planning are crucial,” he noted.