Family businesses form the backbone of India’s economy, contributing nearly 79% to the GDP and employing more than half the workforce. Yet, their survival rate is alarmingly low. Only 30% of family businesses transition successfully to the second generation, and just 12% make it to the third.
So, why do some family businesses evolve into global conglomerates, while others fail to adapt and disappear? The answer lies in the mindset, leadership traits, and adaptability of the next generation.
Let’s dive into the defining traits that next-gen leaders must possess to not just sustain but scale their legacy businesses.
Why most family businesses struggle
While family businesses have strong foundations, heritage, and values, they also face unique challenges that make sustainability difficult:
Resistance to change 
Older generations may hesitate to adopt new technologies, shift consumer strategies, or embrace digital tools. Remember how many retailers ignored e-commerce—and paid the price?
Leadership conflicts 
Power struggles, sibling rivalries, and unclear succession plans often lead to decision-making bottlenecks, as seen in the Ambani family dispute.
Lack of formal business education 
Many next-gen entrepreneurs rely on intuition, but without financial literacy, global market understanding, or strategic planning, scaling becomes difficult.
Emotional decision-making 
Personal biases often lead to inefficient business strategies and family favouritism in leadership roles.
While these challenges cause some businesses to stagnate, others break these patterns and achieve exponential growth.
Traits every next-gen entrepreneur needs to succeed
Vision with adaptability
The business world is constantly evolving, and companies that fail to adapt eventually lose relevance. The ability to anticipate change, embrace innovation, and pivot strategies when needed separates thriving businesses from those that struggle.
Case in point:
Reliance Industries, once a textile giant under Dhirubhai Ambani, transformed into a telecom and digital powerhouse under Mukesh Ambani. With Jio, he didn’t just follow the curve—he bent it. The vision? Digital India. The result? A revolution.
This transformation was possible because the leadership had a strong vision and the adaptability to execute it. Instead of resisting change, they embraced emerging opportunities—a trait all next-gen entrepreneurs must develop.
Watch how SPJIMR’s PGPFMB helps family business leaders develop this trait:
Financial acumen and smart risk-taking
Family businesses don’t just survive on legacy—they thrive with sound financial planning, investment foresight, and calculated risks. Strong market presence means little if finances aren’t managed well.
Case in point:
When Ratan Tata acquired Jaguar-Land Rover during a downturn, critics raised eyebrows. Today, it’s a billion-dollar turnaround story—rooted in strategic risk and financial confidence. Understanding investment, cash flow, and global financial trends is non-negotiable for scaling sustainably.
Decisive leadership in tough situations
Successful entrepreneurs don’t wait for perfect conditions—they act decisively, even under pressure. Leadership in family businesses often means making bold choices that shape the company’s future even when the odds are against them.
Case in point:
Kumar Mangalam Birla was just 28 when he took the helm after his father’s sudden death. Amid doubt and scrutiny, he made bold moves into telecom, finance, and international markets, growing the business from $2 billion to $66 billion.
His journey shows that true business leaders don’t wait for the perfect moment—they assess risks, make informed decisions, and act decisively, even in tough situations.
Hear directly from SPJIMR PGPFMB participants on how they developed their leadership skills:
The power of business education in family business leadership
Many next-generation entrepreneurs believe that experience alone is enough to lead a family business, but the reality is different. While hands-on learning is valuable, a structured business education can accelerate leadership capabilities, prevent costly mistakes, and provide a competitive edge.
Family businesses often face unique challenges—generational conflicts, resistance to change, financial mismanagement, or struggles with scaling. Without formal training in strategy, finance, and leadership, next-gen leaders may repeat past mistakes or struggle to bring fresh perspectives.
This is where SPJIMR’s Postgraduate Programme in Family Managed Business (PGPFMB) plays a transformative role. It offers a well-rounded approach that combines traditional business wisdom with modern, globally relevant strategies, ensuring that family businesses not only survive but thrive for generations.
Why SPJIMR’s Postgraduate Programme in Family Managed Business (PGPFMB)?
Bridging generational gaps
Helps next-gen leaders navigate family business dynamics while modernising strategies.
Practical learning
Case studies, simulations, and mentorship from business leaders.
Watch FMB participants share their experiences at SPJIMR
SPJIMR alumni who scaled their businesses
Shri Charran – transforming a legacy business
Born into a traditional gold jewellery family business, Shri Charran faced the challenge of evolving customer preferences and rising competition. Initially hesitant to diversify, he realised the need for expansion after joining SPJIMR’s FMB programme.
With strategic insights, he launched ‘The Amethyst’, a premium silver jewellery brand, alongside the family’s gold business. The bold move paid off, turning his new venture into a ₹30 crore success while keeping the legacy intact. His story proves that stepping beyond tradition can open new growth avenues.
Testimonial
“People exploring or already enrolled in entrepreneurship programmes understand the constant pursuit of new and better ideas. Back in my batch, there were six of us from a jewellery background, often brainstorming together during our Economics class about how to take our businesses to the next level. It was during one of these sessions that I had my most memorable—and heated—debate with our professor, Tulsi ma’am. Overhearing our discussion, she suggested something that stopped us in our tracks: “Why not go beyond gold? Perhaps consider silver!”
At the time, I was firmly against the idea. Silver felt like a step down—it was less valuable and didn’t seem to hold the same prestige as gold. I worried that venturing into silver would mean compromising our elite clientele. But ma’am was unwavering. She not only explained the growing appeal of silver jewellery but even brought her own pieces to class to demonstrate its potential, showing a level of commitment that went beyond the classroom.
Her passion for the subject—and her faith in silver—left a lasting impression, even if I couldn’t see it then. It’s a testament to her dedication as a professor and her ability to broaden our perspectives.
~ Shri Charran, PGPFMB 23 (2017-18)
Register your interest for this programme
Please fill in the following details
Ready to lead the change?
Leading a family business today takes more than inheritance. It takes vision, resilience, bold decision-making, and the right education. The difference between businesses that survive and those that scale lies in how prepared the next-gen leader is.
With the right education and strategic mindset, you can break free from traditional limitations, gain the confidence to lead, and future-proof your business. Whether you want to expand into new markets, navigate leadership challenges, or bring fresh ideas to an existing business, the journey starts with learning from the best.
Discover how SPJIMR’s PGPFMB can empower your leadership journey.
