Family Enterprises: Perspectives

Family enterprises have been part of our culture and tradition for a long time. They have contributed immensely to the evolution of business. At the root of most large and successful businesses or corporate groups, one would find a highly entrepreneurial, innovative, and resilient family enterprise. Such an enterprise continues to successfully reinvest its time, energy, and earnings over the years towards fulfilling its business and family objectives, and obligations.

In the second decade of the 21st century, the established concept of the “maximisation of shareholder value”, is morphing into a more inclusive concept of “maximisation of stakeholder value”. A business would survive and prosper over the long term only when it addresses the objectives of stakeholders – customers, suppliers, employees, the community, government, and finally, shareholders. Family enterprises are pivoting to varying degrees towards this philosophy.

The global COVID-19 pandemic has made it urgent for businesses to embrace this philosophy. Businesses, including family enterprises, have pitched in, quite substantially, to address stakeholder concerns, even as they seek to shield their business operations from the economic and commercial impact.

The article titled “Family business – time to transition” focuses on technology adaptation and innovation.

Family enterprise is the backbone of our society and there is an urgent need to focus on its sustainability, especially as the organisation grows in size and scale. This requires a healthy and open interaction between family members and the business. The wisdom shared by Harsh Mariwala and Nishant Arya; the key areas for consideration as set out by Peter Pagonis; important information on tax, policy, judicial pronouncements, and inheritance law, makes this edition a powerhouse of information. We hope you find this an enjoyable yet insightful read.