HSBC: Indian Family Business Heirs Show Weak Intentions for Succession
According to a May 20 report by The Indian Express, an HSBC report found that Indian family business heirs show weak intentions for succession, indicating a shift in the traditional power transfer method of Indian family businesses.
India has a unique family business culture: first, India is the country with the highest proportion of global family business GDP, where family businesses contribute about 79% of India's GDP and play a key role in its economic growth. Second, Indian family businesses have extremely long lifespans, with some family enterprises even lasting over a century.
However, data from HSBC's report "Family-owned Businesses in Asia: Harmony through Succession Planning" shows that India is "on the brink of a major intergenerational wealth transfer."
On one hand, only 7% of the surveyed second-generation heirs believe they "have a responsibility to take over," indicating this group clearly lacks interest in inheriting the family business. On the other hand, 79% of Indian entrepreneurs still hope that family members will take over the business. 95% of second and third-generation Indian entrepreneurs are highly trusted when taking over the business, far exceeding the global average (81%).
Analysts say that Indian family businesses are balancing heritage inheritance with modern trends. Although Indian society believes that the next generation can uphold the values and culture of family businesses, companies are formulating more reasonable succession plans based on real circumstances.
Original article: https://www.toutiao.com/article/1832903537590472/
Disclaimer: This article solely represents the author's personal views.