From the Family to the Firm
A view through the Indian Prism
Family businesses dominate the economic landscape in nations around the world. India is no exception. In India, family run businesses account for 85% of all Indian companies and account for the vast majority of national output and employment. According to Business Today, family-run businesses account for 25% of India Inc’s sales, 32% of profits after tax, almost 18% of assets and over 37% of reserves.
Not all family-owned businesses are created equal. India has seen its share of some very influential families in businesses that have influenced the economic and political situation of the country. They have existed for over hundred years and have evolved into world-class business conglomerates. At the other end of the spectrum there are also a number of family entities who have continued to be promoter driven.
This article highlights on how the traditional family business houses are transforming from their traditional business style to adopt the latest management practices to sustain in this competitive business world amidst the Multi-national Companies.