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Economic Times
a day ago
- Business
- Economic Times
Only 7% Indian heirs want to join family businesses: HSBC report
Most want to pass the baton to kin Inter-generational wealth transfer in India Financial advice, risk mitigation, wealth management are being integrated into this process. Many businesses, established in the 1990s following economic liberalisation, have second-generation entrepreneurs educated abroad and raised in cosmopolitan settings. Multi-generational family businesses accord a high value to extended family and kinship, with some thriving for over a century. Entrepreneurs who are hesitant to seek support from older generations Live Events Among Indian entrepreneurs... This is despite the optimism displayed by their predecessors, most of whom plan to pass on their businesses to family members, claims a recent report by the HSBC Global Private Banking . The study also explores the succession preparedness of family-owned businesses across India and Asia. Business owners all over the world have different succession plans. While some prefer to sell their businesses, most entrepreneurs intend to pass it on to a family businesses in the country are taking a proactive approach towards transition of wealth and succession heirs feel obligated to join the family business Next-gen Indians who felt confident about pursuing other interests when they first took over the family wealth transfer expected within Asia Pacific from 2023 to 2030, according to McKinsey, with ultra-high networth individuals (UNHIs) accounting for 60%.is the contribution of familyowned businesses to India's GDP, one of the highest ratios (US $) in India in 2024, up 29% year-on-year, as per Hurun data, of to receive $1.5 trillion intergenerational wealth, which is more than one-third of India's Global Private Banking 'Family-owned businesses in Asia: Harmony through succession planning 2025' report. The research was conducted by Ipsos UK on behalf of HSBC among 1,798 high net-worth business owners with at least $2 million investible assets. It was conducted online in mainland China, France, Hong Kong, India, Singapore, Switzerland, Taiwan, UAE, UK and the US.
Time of India
a day ago
- Business
- Time of India
Only 7% Indian heirs want to join family businesses: HSBC report
This is despite the optimism displayed by their predecessors, most of whom plan to pass on their businesses to family members, claims a recent report by the HSBC Global Private Banking . The study also explores the succession preparedness of family-owned businesses across India and Asia. Most want to pass the baton to kin Business owners all over the world have different succession plans. While some prefer to sell their businesses, most entrepreneurs intend to pass it on to a family member. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Semua yang Perlu Anda Ketahui Tentang Limfoma Limfoma Pelajari Undo Inter-generational wealth transfer in India Family-owned businesses in the country are taking a proactive approach towards transition of wealth and succession planning. Financial advice, risk mitigation, wealth management are being integrated into this process. Many businesses, established in the 1990s following economic liberalisation, have second-generation entrepreneurs educated abroad and raised in cosmopolitan settings. Multi-generational family businesses accord a high value to extended family and kinship, with some thriving for over a century. Entrepreneurs who are hesitant to seek support from older generations 7% Indian heirs feel obligated to join the family business . Live Events 83% Next-gen Indians who felt confident about pursuing other interests when they first took over the family business. $5.8tn Inter-generational wealth transfer expected within Asia Pacific from 2023 to 2030, according to McKinsey, with ultra-high networth individuals (UNHIs) accounting for 60%. Among Indian entrepreneurs... ~79% is the contribution of familyowned businesses to India's GDP, one of the highest ratios globally. 334 Billionaires (US $) in India in 2024, up 29% year-on-year, as per Hurun data, of whom... ~70% set to receive $1.5 trillion intergenerational wealth, which is more than one-third of India's GDP. Source: HSBC Global Private Banking 'Family-owned businesses in Asia: Harmony through succession planning 2025' report. The research was conducted by Ipsos UK on behalf of HSBC among 1,798 high net-worth business owners with at least $2 million investible assets. It was conducted online in mainland China, France, Hong Kong, India, Singapore, Switzerland, Taiwan, UAE, UK and the US.
Indian Express
20-05-2025
- Business
- Indian Express
Succession: Kin of Indian family business owners not keen on taking reins, shows survey
A mere 7 per cent of the next generation of India's family business owners feel a sense of obligation to take the reins, indicating a significant lack of interest in succeeding their parents, says an HSBC report. This raises questions about the future leadership and succession planning for these family businesses. While 88 per cent of Indian entrepreneurs surveyed by HSBC trust the next generation's ability to manage family wealth, 45 per cent of surveyed entrepreneurs (55 per cent of first-generation and 35 per cent of multi-generation) do not expect their children taking over the family business, according to HSBC Global Private Banking's report titled 'Family-owned businesses in Asia: Harmony through succession planning' The HSBC report has highlighted the preparedness of family-owned businesses in India and across Asia for the future of their enterprise and their wealth, offering key insights into succession planning and intergenerational dynamics. HSBC said this trend highlights a shift in the traditional approach to succession planning, even as family-owned businesses continue to play a pivotal role in India's economy, contributing approximately 79 per cent of the country's gross domestic product (GDP) — one of the highest ratios globally. Interestingly, only 7 per cent of Indian respondents felt obligated to take on the family business when the business was passed on, reflecting a growing openness to exploring opportunities outside the family enterprise, it said. Kotak Mahindra Bank founder Uday Kotak had recently advised the next generation of business heirs to step into building real-world businesses and flagged concerns regarding the increasing inclination of young business heirs to run family offices and investments instead of starting businesses of their own. According to the HSBC report, this sentiment is supported by strong feelings of encouragement within multi-generational families, with 83 per cent of respondents stating they felt empowered to pursue other interests when they first took over the business. Despite this shift, the report said that 79 per cent of Indian entrepreneurs still plan to pass their businesses to family members, aligning closely with global trends (77 per cent in the UK and 76 per cent in Switzerland). Notably, Indian second- and third-generation entrepreneurs feel a strong sense of trust from their predecessors, with 95 per cent reporting they felt trusted when taking over the business — significantly higher than the global average of 81 per cent. India is on the brink of a significant intergenerational wealth transfer, it said. According to Hurun data, in 2024 India had 334 billionaires in US dollar terms 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 one-third of India's GDP. This underscores the importance of robust succession planning to ensure the seamless transition of wealth and business leadership. Sandeep Batra, head, international wealth and premier banking, HSBC India, said: 'India's family-owned businesses are balancing legacy preservation with modernity. While there is trust in the next generation to uphold the values and culture of the family business, there is also need for open communication and robust succession planning.' Longevity of Indian businesses India's family-owned businesses are unique in their longevity, with some thriving for over a century. However, many of these businesses were established in the 1990s, following the government's economic liberalisation, ushering in a generational shift. Second-generation entrepreneurs, often educated abroad and raised in cosmopolitan settings, bring new perspectives to the table. Unlike the humble beginnings of many first-generation entrepreneurs in India, the second generation has grown up in cosmopolitan urban environments. However, family-business owners do trust the ability of the next generation to maintain the values and culture of the family business, the HSBC report said. Multi-generational family businesses accord a high value to extended family and kinship. Second- and third-generation entrepreneurs in the Indian subcontinent almost unanimously acknowledge the faith that their predecessors placed in them when they took over the business. Like India, second- and third-generation entrepreneurs across the rest of Asia trust the next generation to maintain the values and culture of the family business. Of those who have succession planning in place, India has the highest percentage of entrepreneurs who intend to pass their business on to a family member, with 79 per cent intending to do so, which puts Indian business owners on a level with their counterparts in the UK (77 per cent) and Switzerland (76 per cent). However, fewer than half of the respondents in Hong Kong share this intention (44 per cent), along with just 56 per cent in mainland China and 61 per cent in Taiwan. Entrepreneurs in Asia, with the exception of India, are not planning ahead to the same degree as their counterparts elsewhere. Entrepreneurs in mainland China (25 per cent), Hong Kong (29 per cent) and Taiwan (27 per cent), plus to a slightly lesser extent Singapore (22 per cent), show the most interest in selling their business as the exit route of the 10 surveyed markets. The sector most favoured for sale globally is electronics (21 per cent), a sector in which Asia accounts for almost two-thirds of world exports.
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Business Standard
20-05-2025
- Business
- Business Standard
Indian family businesses trust heirs but succession trends are shifting
A new report by HSBC Global Private Banking reveals that while Indian family business owners overwhelmingly trust their heirs to manage wealth and business operations, there's a shift in how the next generation views succession. The report, Family-owned businesses in Asia: Harmony through succession planning, highlights a growing move away from traditional expectations and toward more flexible, values-driven approaches to inheritance and business continuity. Trust is high, obligation is low 88 per cent of Indian entrepreneurs trust the next generation to manage family wealth Only 7 per cent of Indian heirs feel obligated to join the family business 45 per cent of business owners do not expect their children to take over 79 per cent still intend to pass the business on to family — comparable to the UK (77 per cent) and Switzerland (76 per cent) These numbers point to a balancing act between legacy and modern individualism. Changing mindsets, urban influences The report finds that second- and third-generation business leaders, especially those with urban and global exposure, feel more empowered to chart independent paths. 83 per cent of Indian heirs said they feel free to pursue careers outside the family enterprise 95 per cent feel supported by the older generation — much higher than the global average of 81 per cent India's $1.5 trillion wealth transfer ahead India is on the cusp of a massive wealth transition. According to Hurun, nearly 70 per cent of India's 334 billionaires are preparing to pass on approximately $1.5 trillion in wealth — more than a third of India's GDP. This makes succession planning a top priority. 'India's family-owned businesses are balancing legacy preservation with modernity… By integrating sound financial advice, families can safeguard their legacy and plan for sustainable growth,' said Sandeep Batra, Head of International Wealth and Premier Banking at HSBC India. India leads Asia in family-led succession planning The HSBC report finds wide regional contrasts in Asia: 79 per cent of Indian entrepreneurs plan to pass the business to family Only 56 per cent in China and 44 per cent in Hong Kong say the same In contrast to just 7 per cent in India, nearly 60 per cent of heirs in China feel obligated to join the family business In many East Asian markets, more owners are considering selling their businesses outright — a sign of differing cultural and market pressures. While Asia is still behind global peers in succession planning, there is a growing recognition of its importance. As Indian businesses look to the future, they are embracing both tradition and change — and placing strong trust in the next generation.
Time of India
20-05-2025
- Business
- Time of India
Indian family businesses show strongest succession intent: HSBC
BENGALURU: India's family-run businesses are taking a more structured and optimistic approach to succession compared to their Asian peers, with stronger planning, deeper intergenerational trust, and a clearer intent to keep businesses within the family, according to HSBC Global Private Banking's new report on family-owned enterprises in Asia. Tired of too many ads? go ad free now Across the region, a large gap exists between intent and action. While 78% of entrepreneurs surveyed said they want to pass their business on to their family, 52% have no formal succession plan in place. India, however, stands out. The report found that 79% of Indian entrepreneurs plan to transfer their business to a family member, the highest among all 10 markets surveyed, including the UK and Switzerland. Indian business families also reported the highest levels of trust in intergenerational leadership. About 95% of Indian entrepreneurs who inherited their family business said they felt trusted by the previous generation when taking charge, compared to a global average of 81%. Similarly, 92% say they trust the next generation to uphold the values and culture of the family enterprise. Many Indian family businesses are still undergoing first-to-second generation transitions, a stage considered especially vulnerable. The report noted that a significant portion of such businesses were founded after India liberalised its economy in the early 1990s, mirroring a similar trajectory in Mainland China. India's ongoing intergenerational wealth transfer is also expected to be one of the largest in Asia. Citing Hurun data, the report noted that India had 334 billionaires as of 2024, nearly 70% of whom are expected to be part of a 1.5 trillion dollar wealth transfer, which is equivalent to more than a third of India's GDP. Tired of too many ads? go ad free now Despite strong legacy sentiments, 45% of Indian entrepreneurs surveyed said they do not expect their children to take over the business. This reflects a growing acceptance of alternate aspirations and a willingness to let the next generation chart their own paths. The report also pointed to rising interest in professional wealth structures such as Single Family Offices. Wealthy Indian families are increasingly exploring these vehicles to diversify holdings, formalise governance, and support future generations in managing wealth, following trends already visible in Singapore and Hong Kong.
