Family Businesses:Promoters’ Skin in the Game 2001-2017

Bang, Nupur Pavan.,Ray, Sougata., Ramachandran, Kavil., Vishwanathan, Anierudh. "Family Businesses:Promoters’ Skin in the Game 2001-2017", 2018
Family businesses survived and grew through the era of the ‘Licence Raj’. However, in the postindependent India. it was widely assumed that family businesses would not be able to adapt to the paradigm shift in the strategy, operations, structure and resource allocation brought about by the liberalizationpolicies of 1991 and beyond1. While many family businesses failed to rise to the occasion, the Indian economy witnessed a new generation of highly competent family businesses that established themselves as significant players. Also, many old family business groups rejuvenated themselves to remain competitive and moved to leadership positions in their respective industries. Of course, many withered away in the competitive heat generated by the process (Bang, Ray & Ramachandran, 2017). In essence, family businesses in India prospered in the era of liberalization and contributed significantly towards employment generation, gross domestic product, social welfare activities and to the exchequer. To better understand family businesses in India and their evolution post liberalization, the Thomas Schmidheiny Centre for Family Enterprise at the Indian School of Business has undertaken a series of studies. The first study in the series was published in July 2017, “Family Businesses: The emerging landscape - 1990-2015”. The study systematically traced the collective trends exhibited by family businesses and other ownership categories like the state-owned enterprises and the multinational companies, on various parameters of performance.This publication, “Family Businesses: Promoters’ Skin in the Game- 2001-2017” is the second White Paper in this series focusing on ownership.