On environmental sustainability, Indian family businesses align with the global average of 78 per cent, however, there is room for improvement, especially in environmental practices, in which European firms are leading, according to a report by the Thomas Schmidheiny Centre for Family Enterprise at the Indian School of Business (ISB).
It revealed that Indian family businesses score 78 per cent on legacy importance, matching the global average.
When it comes to transgenerational entrepreneurship, Indian businesses score 76 per cent, slightly below the European and Asia-Pacific averages of 77 per cent, indicating a need for increased focus on fostering entrepreneurial initiatives across generations.
The report added that 45 per cent of family businesses with strong legacies report high business performance compared to their competitors.
About 53 per cent of surveyed family businesses with strong legacies demonstrate high sustainability performance across community, environmental, employee, and supplier aspects.
Nupur Pavan Bang, Academic Director, Thomas Schmidheiny Centre for Family Enterprise at ISB emphasised, “By understanding their legacy type and actively shaping it, family businesses can unlock significant growth potential, ensure long-term sustainability, and contribute positively to society."
He added that while Indian family businesses demonstrate a commendable commitment to legacy, at par with the global average, there's potential to further enhance transgenerational entrepreneurship and employee-centric sustainability practices.
“By learning from global best practices and adapting them to the Indian context, family businesses in India can unlock new avenues for growth and impact,” Bang added.
