SUSTAINING FAMILY BUSINESSES

Family businesses are shaped by two intertwined perspectives.

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On one hand, they focus on products, markets, strategies, and revenue. On the other hand, they carry the weight of relationships, traditions, and unspoken expectations. Their true measure of success lies not only in the growth of the balance sheet but in the legacy they preserve and pass on across generations.

A family business is any business where ownership and decision-making are influenced by members of the same family. They may begin modestly with a store, a workshop, or a fish stall and evolve into a retail chain, a multinational manufacturing company, or a seafood exporter with market dominance.

What begins as a livelihood transforms into a legacy, carried forward through generations. In India, family business forms the bedrock of the economy. Several studies indicate that family-owned businesses account for a major part of our great nation’s GDP, underlining their scale and impact.

While it is true that family businesses are engines of growth, they are also vulnerable to unique challenges. Where legacy and emotions intersect with money and management, conflict is often close by. The success of a family business depends less on markets and capital and more on how effectively the family manages its own complexities.

Another delicate issue is succession. When the question of “who will take over after the founder” is left unanswered or handled poorly, rivalries and resentment begin to surface.

Equally complex is the balance between professionalisation and control. While bringing in external managers can strengthen governance and sharpen strategy, families often hesitate to relinquish their influence, creating a push-and-pull between tradition and modern management.