Overview
Parampara Family Business Institute (The institute) serves as an Education and Research platform to enable family businesses sustain, grow and perpetuate through generations.
PFBI will engage with family businesses in the following stages:
  • Awareness
  • Education
  • Development
The Institute will provide state-of-the-art expertise through research, global partnerships and knowledge exchange.
Why PFBI?
  • 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 only 13% of the family businesses survive till the 3rd generation, 4% go beyond the third generation and about one third of the business families disintegrate because of generational conflicts
Source: CII - FBN India
  • 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 the employment
  • As they succeed, they contribute to the economy of the country because family businesses contribute to 60-70 percent of the 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
PFBI is a Not-for-profit social initiative that seeks to contribute to national development by supporting one of the largest contributing stakeholders – the family business. The Institute will work towards inspiring emerging family businesses to focus on the development of the family and the business through dissemination of knowledge, awareness and education.

Genesis of PFBI

Parampara Family Business Institute was conceptualized as a social endeavor to make a difference to family owned business community especially the small and medium business enterprises.

The genesis of PFBI began when GM Rao (Founder of GMR Group) was the director of Vysya Bank wherein he came across multiple cases of non-performing assets (NPAs) due to breakdown/conflicts in family businesses. It made him reflect upon a significant phenomenon - in a country where more than 70% of businesses are family-run entrepreneurial ventures (which is a significant contribution to the economy), what underlying reasons lead them to thrive or perish? The answer to this was found years later when GM Rao founded the company GMR Group with a global presence in infrastructure operating assets and projects like Airports, Power Projects, Highways etc. After the exponential growth of the business, the GMR family was introduced to the notion of family governance and they pioneered in crafting a detailed family constitution with an aim to establish an institution for perpetuity.

As a social initiative, GMR family founded PFBI to spearhead awareness, education, adoption and development of family business governance in India by drawing upon the best-in-class wealth of wisdom offered in the space of family business education like FFI, BFF etc. . Smitha Raju has served on the board of Business Families Foundation. In the past few years, PFBI has played an instrumental role in delivering this wealth of knowledge to various family businesses in India through a pool of FFI certified advisors and institutional channel partners such as bankers and traders/industrial bodies. A multitude of awareness programs, highly interactive "Compass Programs for Entrepreneurial Families, modular/short-term programs were organized through channel partners like CII-FBN, Banks, EDI & other educational institutions. PFBI's research arm has contributed noteworthy Indian case studies that provide meaningful insights in the areas of entrepreneurship and family businesses in the Indian cultural ethos.

Purpose

Parampara Family Business Institute (PFBI) serves as an Education and Research platform to enable family businesses sustain, grow and perpetuate through generations.

It is our endeavour to:

  • Provide thought leadership
  • Create awareness on establishing processes, robust governance and relationship building
  • Educate family owned businesses to sustain dynamic progress across generations
  • Nurture the spirit of entrepreneurship in the next generation of family-owned enterprises

Online Symposium

  • The purpose of the online symposium series is to provide a platform to impart the latest knowledge to explore & understand aspects that leverages the best of both family and business.
  • This series offers sessions with world-class experts who will share their experiential learnings & wisdom to facilitate the process of transformation, business growth and togetherness and help family owned enterprises navigate through these disruptive times.

Mission

To foster commitment in emerging Family Owned Business for meaningfull and proper Governance that enables perpetuity and National Economic Development.

Values

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