Fewer than one in 10 members of Indian business families feel obligated to take over their family enterprises, according to a survey conducted by HSBC, highlighting a generational shift in attitudes toward legacy businesses.
In contrast, the business owners still want to rely on the next generation to carry on the mantle, with four out of five respondents to the survey in India planning to pass on the business to a family member.
According to Hurun data, India had 334 billionaires in US dollar terms in 2024, with the number rising 29 per cent year-on-year. Nearly 70 per cent of the list are on the cusp of a $1.5 trillion intergenerational wealth transfer that equates to more than a third of India’s GDP.
While the HSBC study was conducted across many geographies, it finds that nowhere the sense of filial duty is more pronounced than in mainland China where almost 60 per cent say they felt a sense of obligation to take on the family business compared with only 7 per cent in India.
The findings are based on research conducted among 1,798 high networth business owners from mainland China, France, Hong Kong, India, Singapore, Switzerland, Taiwan, UAE, the UK and the US with at least $2 million of investable assets.
While 79 per cent of Indian entrepreneurs still plan to pass on their business to family members, many recognise that their children may have different aspirations, and a significant proportion are open to them exploring those avenues.
In India, 45 per cent of surveyed entrepreneurs (55 per cent of first generation and 35 per cent of multi-generation) say they do not expect their children to take over the family business.
The report appeared within months of veteran banker Uday Kotak commenting that the next generation at family businesses is lacking animal spirits and pointing out that fewer kids are keen on building and operating businesses.
Commerce minister Piyush Goyal recently noted that kids of some of the billionaires he knew are into making fancy ice creams and cookies, lamenting that they do not take the family business forward.