Dynamism of Family Business

by Zulfiqar Shivji
We are witnessing a shift in the Indian family business landscape in the light of evolving business dimensions and their impact on family wealth as an indicative of national income. Despite the fact that Indian families are getting smaller and nuclear, family-owned businesses still own more than 65 per cent of India’s GDP and contribute to 90 per cent of industrial output. It is a logical derivative, hence, to say that the largest wealth residence is in family businesses. With the advantage of long-term commitment to business, linear structures leading to quick decision making, ability to rapidly move with unconventional logic, it is easier for family businesses to bet on new opportunities and strike about 18 per cent return on equity as opposed to 14 per cent, states one of the global investment banks . Since the ‘family's name’ is at stake, promoters are willing to traverse the challenging business conditions and look beyond the way professionals do, at risks and rewards. Their business thrives on their goodwill in the market as their business ethics are defined on the bedrock of legacy values like long-term commitment and inherited relationships. A recent joint venture
To read more register below...
  • Strength indicator
  • This field is for validation purposes and should be left unchanged.
2018-05-18T13:07:39+00:00February 6th, 2015|2015, BDO Focus, INDIA INVESTMENT JOURNAL – V3/I 1, Year|

About the Author: Zulfiqar Shivji