Only 7 % of the Indian heirs feel joined to family business: HSBC report on companies and the Caliphate style

With India benefiting by transferring wealth between generations of $ 1.5 trillion, a new HSBC report revealed that only 7 % of the Indian heirs felt that they were obligated to take over their family business, which represents a clear departure from the traditional expectations of inheritance and caliphate.

The report, which is titled the Family -owned companies in Asia, was released by planning the caliphate, on May 20, which highlighted the changing mentality of the institutions run by the family throughout the region. While 88 % of Indian entrepreneurs expressed their confidence in the ability of the next generation to manage the family’s wealth, 45 % said they do not expect their children to actually take over. This reflects a medium gap between confidence and intention in the succession of leadership.

Nevertheless, 79 % of Indian family business owners are still planning to pass their project to a family member, among the highest global level, equally with the United Kingdom (77 %) and Switzerland (76 %).

“The companies owned by the family in India are a balance between maintaining modernity with modernity. While there is confidence in the next generation to support the values ​​and culture of family business, there is also a need for open communication and strong planning for caliphate,” said Sandep Patra, Head of the International Wealth and First Banking Department, HSBC India.

He added that a pre -emptive approach to the caliphate not only enhances family bonds, but also guarantees long -term business sustainability.

The companies run by the family contribute approximately 79 % of GDP in India-one of the highest percentages in the world. Many of them were established after the economic liberalization of the nineties and are now moving in the transformation of generations.

Entrepreneurs brought from the second and third generation, and they are often raised in international environments and education abroad, new views of their inherited companies. Nearly 95 % of these caliphs in India said they feel reliable when taking over, compared to the global average of 81 %.

The report also highlighted how the caliphate dynamics differ across Asia. For example, while 60 % of the second and third generation entrepreneurs, China felt that they are obligated to continue family business, this number decreases dramatically to 7 % in India. Meanwhile, Hong Kong business owners (44 %), China (56 %), and Taiwan (61 %) are much less likely than their Indian counterparts to maintain business within the family.

The results confirm the urgency to plan the official caliphate, especially since India is about to be one of the largest transfers in its history – estimated at 1.5 trillion dollars, equivalent to a third of GDP, according to Horon’s data.