Family businesses go on for generations together. This gives them an easy advantage over non-family businesses as they have deep industry knowledge of what’s happening currently and the past trends too. That’s not all, they have the commitment and passion towards the success of the business and the industry knowledge helps them to take informed market-focused decisions.
Let’s go through each of these advantages in detail:
- Dedication and passion towards the business goal: In a family business, often non-family members too are treated as a family. This strong relationship built with the employees and other stakeholders result in fruitful daily operations as everyone works towards achieving one goal. While the owners tend to take better care as they have their stakes involved in the company, it makes a huge difference when the employer is appreciative of the employee’s talent.
- Decision making: Not having responsibilities towards any shareholders gives the Indian family businesses greater flexibility in terms of making decisions faster, improving the speed with which they launch new initiatives, change operations, evaluate new business opportunities, etc.
- Industry insights: Family businesses work in one industry for longer durations. This gives them significant experience and expertise. They understand the pulse of the market and their consumers well over non-family businesses. This makes them ready for any challenges.
- Mutual trust: Family businesses thrive on mutual trust and believe in maintaining long-term relationships by providing a conducive, supportive and trusting work environment.
- Reinventing entrepreneurs: The Family Business Survey conducted by PWC suggests that:
- 74% of respondents think that family businesses being more entrepreneurial in nature
- 62% think that family businesses generate more employment in the market
- Nearly 60% of the respondents felt that they reinvent themselves with each generation
Family businesses take pride in their contribution towards providing a greater balance and stability to the economy and are more likely to take greater risks than the non-family businesses. While there are downsides of the family business, it’s their industry knowledge that keeps them going generations ahead!