The Rise Of Gen Next

Family Businesses in India have evolved over the decades and centuries, especially blooming after the economy was liberalised. But the journey to stay relevant continues

- Krishna Gopalan

A FAMILY MANUFACTURING textiles. A jewellery maker's descendant. A film distributor's grandchild. Or just a wealthy classmate with brothers, sisters and cousins living together. Regardless of where you grew up in India, there was always a friend who came from a business family. This was a phenomenon we encountered, and we still do. Family business is a tradition that; goes back several hundred years in India.

With time, these families evolved to accommodate more members, while some people left the family enterprise to chart their own path. In the process, new and stronger businesses emerged, while the less fortunate ones fell on hard times. The new India-which took off in 1991 with economic liberalization-has seen many a business take off exponentially. Competing with global counterparts, these ventures have upped the game on quality standards, hiring professionals and creating businesses driven by merit, competence and agility. India Inc., now a name to reckon with, has the big-ticket family businesses as a key component driving its future. That is not to take away the disruptive nature of today's world and the ease with which family businesses adapt to that scenario. This is critical since that will determine a good part of the future of family businesses in India.

THE PAST AND THE PRESENT

Family businesses have, perhaps, existed in India as long as families have. While this may be tough to believe and there may be no easy way to prove it, a reading of history suggests so. One has read about how moneylenders came from one particular group much as pearl merchants did, as did jewellers. With time, they too evolved, and trade, in every possible form, made way: for something more organised.