Keeping it in the family

How a Family Business Management programme can help transform a business into a modern sustainable enterprise

Family businesses account for 85% of India’s businesses and contribute to a significant portion of the nation’s employment and domestic output. However, the survival rate of these businesses to the third generation is around 13% and dips further to 4% beyond that. Interestingly, this is not unique to India. A Cornell University study shows almost the exact rates for family businesses in the US. Family Business Management programmes came from the realisation that, while they urgently needed succession planning and modernisation, any potential solution had to work out within their unique structure and requirements. As a training ground for future proprietors, this programme is distinct from a traditional MBA. Instead of focusing on developing professionals, they are run from a business stakeholder’s perspective. The objective is to impart a holistic transformation so that they can help transition their family businesses into modern, sustainable, enterprises.