In India, family-owned companies have been the backbone of the economy for decades. Family businesses face complex challenges, involving not only business and investment decisions, but also ownership issues and family relationships. Most family-owned companies struggle to survive beyond 2-3 generations. Family businesses are vulnerable at times of transition in leadership, when there is often a conflict between the desire to maintain and respect tradition and the need to adapt and progress the business in response to its changing environment.
Family firms need to maintain a balance between business goals (such as growth, innovation and recruiting talented staff) and family goals, such as maintaining family values and protecting the family wealth. They also need to arrange a smooth transition in leadership eventually, from one generation to the next. These goals may sometimes conflict and may be difficult to reconcile with each other.
On one hand while the independence, decisiveness and single-minded focus that often seem to serve entrepreneurs so well in building a successful family business may work against them when it comes to preparing next-generation family members for future leadership responsibilities. On the other, next generation leaders today are more informed and are becoming much more selective about the role they take on in the family business. A growing number are doing a short spell in the family business, usually immediately after university, followed by a longer stint elsewhere, before finally returning to the firm.
Due to the changing business reality, its imperative that families adopt a very focused approach in grooming their Nex-Gen leaders professionally, emotionally and spiritually.
Priwexus and its affiliate members, with their combined experience of working with several family firms across the world and more specifically in India have learned a lot about what makes some of them successful while what creates problems for others. That’s why we’re bringing together the next generation of family business leaders in India. The Priwexus Gen-Nex initiative is designed to offer advice and support from others who’ve been through it, and are going through it. The Gen-Nex is a program of exclusive and exciting events including one-to-one conversations, personal and leadership development, networking events, knowledge workshops, experiential learning modules, insights and bespoke projects.