Indian industry is largely dominated by family businesses, which contribute substantially both in terms of economic output and the employment they create, President Pranab Mukherjee said at the release of a book ‘India Family Business Mantras’. Family businesses have always been a matter of great curiosity as they are distinctively different from non-family businesses, and the authors Tatwamasi Dixit and Peter Leach had explicitly detailed the nuances in the life cycle of a family business, Mr. Mukherjee said. The real life examples given in the book, offer meaningful insights into business families on managing themselves effectively, dealing with conflicts and challenges as a family and the strategic value of staying together as a member of the business family. It weaves the Indian philosophy with the western context to bring out a whole new dimension to managing the family business, the President observed.Historically in India, the business community primarily consisted of traders. Indian businessmen had gradually transitioned from traders’ activities and traders’ identity to manufacturers and various other value added business houses. The trade had evolved over centuries, but the concept of ‘family business’ had remained intact.
Interestingly, even today family businesses contribute to 60-70 per cent of the GDP and 40-50 per cent of the employment, Mr. Mukherjee said. The book takes a pragmatic approach and is interspersed with analogies and concepts from the Indian literature on values and culture. It highlights several challenges such as coping with the overlaps between the family and business systems, organising responsible family ownership, working productively with non-family members and developing next generation leaders.
