Family businesses have long been a cornerstone of India's economic landscape, and a recent report sheds light on the pivotal role that women are playing in these enterprises. The 'India: State of Family Business Report 2023' from the SP Jain Institute of Management & Research underscores the transformative impact of women in the country's family-run businesses.
One striking revelation from the report is the increasing prominence of women in the family business sector. Notably, 40 per cent of family-owned businesses have women as owners, a significant testament to their growing influence. However, what's even more remarkable is that a majority, 54.7 per cent, have female members actively managing the business, signifying a shift in traditional roles and a broader participation of women in decision-making.
The report delves into various aspects of women's contributions to family businesses, offering insights into their unique challenges, successes, and evolving strategies. It's worth noting that generational involvement remains a significant aspect of these businesses, with the first and second generations actively participating in 70 per cent of the enterprises surveyed. Family ownership and control remain essential, as 51 per cent of these businesses report 100 per cent family shareholding, emphasising their closely-held nature.
Prof. Varun Nagraj, the dean of SPJIMR, emphasized the report's significance, stating that it underscores the critical role women are playing in India's family business landscape. He also noted the institution's commitment to fostering the growth of family businesses with a particular focus on empowering women.
One notable trend highlighted in the report is the increasing number of women taking on leadership roles in family businesses. These women are not just passive stakeholders; they are actively shaping the strategies, operations, and future of these enterprises.
The report also touches upon the complex issue of succession in family businesses. While many intend to pass on the reins to the next generation, uncertainties such as capability, interest, and conflicts often lead to delays in this transition. Women are increasingly becoming central figures in these discussions, advocating for change and innovation in the succession process.
The digitalization journey of family businesses is another area of focus in the report. Around 25 per cent of these businesses prioritize digital and new technologies, with women entrepreneurs often leading the charge in adopting innovative solutions. Women are driving digital transformations, embracing online sales, and implementing cutting-edge marketing strategies to propel their family businesses into the digital age.
Despite the evolving challenges, the report highlights the adaptability and resilience of Indian family businesses. A majority of these enterprises reported stable or increasing sales, market share, employment numbers, profitability, and financial indicators in the fiscal year 2022-23, underlining the critical role that women are playing in their success.
The SPJIMR's Centre for Family Business & Entrepreneurship compiled this comprehensive report by analysing and surveying 357 family businesses across 17 cities in India, with a keen focus on the remarkable influence and contributions of women in this sector.