Family Business in India

A recent report by the Credit Suisse Family 1000, India ranks third in terms of number of family-owned businesses. A greater than 50% of their top 30 results in Asia, except Japan, are from India, the survey revealed. Financial results such as profits, sales growth, tax depreciation and other factors, were much higher in family-owned businesses compared to non-family owned businesses. 

A variety of family-led business practices started after independence and gained traction afterward. Because families are concerned with establishing and maintaining their personal property, marking their family names, family prestige and goodwill, the elements of self-discipline and self-governance are strong.

In India the family business is historical. The phenomenon goes on. There are also several business houses where the professional teams take over to manage the empires. Often, these cases multiply as the wealth increases at different rates.

Recent care of this is the Tata group. The company began its search for a successor t Mr. Ratan Tata, and Mr. Mistry was appointed as the president of the Tata group. The renowned IT firm, Infosys saw the transition at the top level when Mr. Narayan Murthy successfully named Mr. Vishal Sikka to lead the business. 

For a large section of society in India, family business remains to rule, and does not fade away. There will be clear variations depending on the size and complexity of the company. If the family business is well managed and the family works for their investment and business operating companies professionally, the same will remain a good business model. Changes are taking place in a growing economy and in view of the global scope of family businesses, and the dimension of professional management and professional involvement is increasing which is the key to a successful business model. 

The family companies are changing the way they are handled and governed. However, decision-making skill in a family-run company is small, competent management of the company and having the right talent to run the business is often a challenge in even large business and corporate houses.

There are several business houses where the trend is changing, especially where the young generation is educated and well informed in India and abroad, and the new generation realizes the value that the right governance system, the right talent and the right delegation can bring success to the business. 

Institute of Management, Nirma University believes in providing a well-designed academic curriculum to the budding family business owners and entrepreneurs who dream of starting a new venture. The curriculum of the Programme is developed on the basis of in-depth interactions with family businessmen,entrepreneurs and subject experts, and consists of Compulsory & Elective courses. Get just the right exposure through domestic and international industrial visits, experience practical learning through internship programmes at IMNU. 

So, hurry up and Apply for MBA FB&E programme here! 

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Created on May 4th 2020 07:35. Viewed 388 times.

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