Navigating Succession Challenges Within Indian Family Businesses

FAMILY BUSINESSES NEED TO BE CLUED INTO THE EMPHASIS ON CORPORATE GOVERNANCE AND SUSTAINABILITY IN TODAY’S BUSINESS WORLD.

- TULSI JAYAKUMAR

In a recent survey we conducted, we found that the biggest challenge facing Indian family businesses, many of whom have transitioned to the second generation, is the question of succession. Succession - whether in small and medium family firms or large and reputed family businesses - is fraught with challenges. Our survey indicated the business scenario is optimistic, and family businesses expect to grow along multiple parameters.

Yet, paradoxically, family businesses face the greatest headwinds from succession issues.

Here are seven principles for successful generational transition within family businesses:

1. UNDERSTAND THE ASPIRATIONS OF THE NEXT-GEN AND REASONS THEY WANT TO BE IN THE FAMILY BUSINESS.