Indian youth
A new concern has come to light about the Indian Business Family. Actually, the youth are taking less interest in family business, due to which they seem to be shy away from taking responsibility. This information was received in the HSBC survey released on Tuesday. According to the survey, very few Indian successors hold themselves responsible for advancing the family business. This situation has been exposed at a time when it has been a long time that the next generation is not taking active participation in family businesses.
The survey included around 200 business owners who have at least 20 million US $ in investment assets. According to the results, almost 4 out of every 5 Indian entrepreneurs are still planning to hand over their businesses to family members, despite the lack of interest in successors.
Only 7% interested
The findings of HSBC survey have revealed that only 7% of Indian successors consider the responsibility of handling the family business as their obligation. This indicates that most of the young successors are more interested in searching for new opportunities outside the family enterprise. Sandeep Batra, International Wealth and Premier Banking Head of HSBC India, said, “Family businesses trust the next generation to carry forward their values and culture, but for this transparent dialogue and strong succession plan is equally important.”
Uday Kotak pointed to this crisis
Earlier, veteran banker Uday Kotak also pointed to the challenge of succession in family businesses, saying that the enthusiasm of starting business and advancing it is decreasing. According to him, there are very few young people who are really curious about creating business and operating it. The HSBC report also confirmed this trend. According to the report, even though 88 percent of Indian entrepreneurs rely on the ability of the next generation family property management, 45 percent of entrepreneurs do not expect their children to take care of the family business. This makes it clear that there is a big difference between trust and reality about succession.
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