Challenges of Family-Owned Business in India: A Survey Based Analysis of Family Business Owners

The foundation of the Indian economy is family-owned companies, which contribute significantly to the GDP of the nation. These companies do, however, confront several difficulties that can prevent them from expanding and remaining viable. The most important difficulty is succession planning. Families in India generally run their enterprises from generation to generation. Finding the ideal successor, however, can be challenging because it calls for juggling family relationships and commercial savvy. Professionalism is an additional difficulty. Changing from a conventional, hierarchical management structure to a more professional, merit-based strategy is a challenge for many family-owned firms in India.As a result, there can be inefficiencies, a lack of creativity, and challenges in attracting and keeping talent. Another issue faced by family-owned enterprises in India is access to funding. Most of these enterprises rely on internal capital or bank loans, which might be scarce and limit expansion possibilities. Overall, family-owned firms in India have difficulties that call for meticulous preparation, strategic thought, and a readiness to adjust to shifting market conditions over the long term to remain competitive and viable.