The Resilient Spirit: Indian Family Businesses Eye Growth While Tackling Internal Growing Pains

It's quite something, isn't it? Indian family businesses, those bedrock institutions of our economy, seem to be marching forward with a rather remarkable sense of optimism, almost shrugging off the global turbulence that has so many others on edge. A fresh report from PwC really paints this picture vividly, showing that while they're feeling fewer bumps from worldwide shocks, there's some serious internal housekeeping that absolutely needs doing.

Globally speaking, family businesses are bracing for impact; 86% of them are sensing some form of global disruption on the horizon. But here in India? Only 77% feel that same pressure, which, you know, is a significant dip. It suggests a certain robustness, perhaps a localised resilience, that allows them to gaze into the future with a brighter outlook. And when we talk about growth, oh, the confidence is palpable! A whopping 68% of Indian family businesses are expecting growth this year, a figure that comfortably outpaces the global average of 60%. It’s a testament, really, to their entrepreneurial spirit and perhaps, the underlying strength of the Indian economy itself.

But let’s not get ahead of ourselves. While the external forecast looks relatively sunny, the internal landscape tells a slightly different story. It’s like having a beautiful, strong house, but discovering a few cracks in the foundation if you look closely enough. The report, titled 'India highlights from the PwC Global NextGen Survey 2023', gently, but firmly, points out these widening gaps. We're talking about crucial areas like professionalisation – bringing in more structured, non-family expertise – digital transformation, talent management, and perhaps the most sensitive of all, succession planning.

Think about it: only 40% of these businesses have a clear, documented succession plan for their senior leadership roles. That’s a startlingly low number, leaving so much to chance and potentially, family friction down the line. It's an issue that could easily derail even the most promising growth trajectory. Similarly, the pace of digital transformation and the adoption of cutting-edge technologies like AI and GenAI are lagging behind global peers. It's a bit like driving a powerful car, but perhaps not having the latest navigation system installed – you'll get there, but maybe not as efficiently or smoothly.

And then there's ESG – Environmental, Social, and Governance. While it’s becoming increasingly critical for businesses worldwide, Indian family enterprises are, for the most part, still playing catch-up. Only a small fraction, 16% to be precise, consider ESG integration a top priority for their next generation. Compare that to the global average of 24%, and you see a clear area where more focus is desperately needed, not just for reputation, but for long-term sustainability and attracting socially conscious talent and investors.

Interestingly, there is a silver lining in the governance aspect. There's a growing recognition of the value of independent directors. Almost 39% of these businesses now have a formal board, and a significant 75% of those boards include independent members. This is a genuinely positive step towards better oversight, transparency, and bringing diverse perspectives to the decision-making table. It shows a willingness, at least in some quarters, to evolve beyond purely familial structures.

So, what's the takeaway? Indian family businesses are undeniably resilient and fiercely growth-oriented, feeling less battered by global storms. They're tackling economic volatility and inflation with a pragmatic approach, focusing on operational efficiencies and new product development. But the journey ahead demands a more inward-looking strategy. They absolutely need to invest in professionalising their structures, formalising succession plans, accelerating digital adoption, and genuinely embedding ESG principles. If they can bridge these internal gaps with the same vigour they apply to external market opportunities, then their growth story could be even more spectacular, truly building a legacy that endures for generations to come.