Parampara Family Business Institute (The institute) was established as a
not for profit company under section 25 of Indian Companies Act with
objective of benefiting the Family Businesses in India through Creating
awareness, education, development and adoption, to enable them to sustain, grow
and perpetuate their family businesses through generations,
The Institute aims to bestow special emphasis to make a difference to
Small and Medium family businesses.
The Institute will engage in thought leadership and research besides education. It will extend its scope in the area of entrepreneurial development in family businesses.
PFBI serves as an EDUCATIONAL, ENGAGEMENT and RESEARCH platform to bring business families together, drawing on the universal experience to offer insights on issues such as business succession and family ownership.
Challenges faced by Family Business
- Most of the Business families face unique management challenges because of the differences in the attitude & aspirations of family members
- As new generations join the family business, it is an enormous challenge to keep the family & business together. Some sacrifice the business to keep the families together, while others sacrifice the family to keep the business
- It has been observed that just 13% of the Family business survive till 3rd generation & only 4% go beyond third generation and one third of business families disintegrate because of generational conflict
Source : CII - FBN India
The role of Family Businesses in the Indian Economy
- Out of the nearly 1000 companies with market capitalization greater than USD 50 million, 663 are family businesses
- Family businesses in India account for 70% of the total market capitalisation and 57% of employment
- As they succeed they contribute to the economy of the country because Family Business contributes 60-70 percent of GDP of most developed & developing countries. India is no exception.
- The close-knit structure of families, which fosters teamwork combined with respect to family values and family elders, has been the key to success of many family businesses
Source : CII - FBN India
The reason for our creation
- Social Endeavour to make a difference to family owned business community especially the small and medium business enterprises.
- Sensitize emerging family business in the value of good governance.
- Contribute to the awareness, education, adoption and development of family business governance.
- Create Robust Sustainable family business for perpetuity.
- Engage on thought leadership and research