Family Business in India: Survival for Three generations or Beyond

Abstract

Historically, family as a social institution has been one of the oldest surviving business units in India, as anywhere else, constituting above 75% in terms of ownership. Most of the researches in family business are limited to western economies. However, the research interest in family business is recent and stray outputs have started appearing in developing countries or Asia in general. Whatsoever research has so far been conducted in family business in India is scattered and our knowledge about the subject has been far from satisfactory. No comprehensive picture is still clear on most aspects of family business. As such, currency is generally given to assumptions and general predilections family business in the country. One of the general assumptions held is the most of the family businesses in India survive for three generations and only a few go beyond thus, supporting the age-old saying, "shirt sleeve to shirt sleeve in three generations." It is in this context that the present paper makes a modest attempt to examine the survival issue of family business in India. The main foci of paper will be to examine the reality or myth about survival of family business in India up to three generations or beyond. Accordingly, the paper has been presented in two parts. Part I gives the theoretical perspective of family business in India and part II presents the empirical evidences based on some case studies on family business in India.