45% of surveyed Indian entrepreneurs didn’t expect their children to take over family business: Report

Interestingly, only 7 per cent of Indian respondents felt obligated to take on the family business when the business was passed on

While 88 per cent of India’s family owned businesses trust their next generation to manage family wealth and enterprise, 45 per cent of the surveyed entrepreneurs did not expect their children to take over the family business, a report from HSBC Global Private Banking states.

This trend of a perceived disinterest among the children of entrepreneurs highlights a shift in the traditional approach to succession planning. This development comes even as family-owned businesses continue 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, stated the report titled ‘Family-owned businesses in Asia: Harmony through succession planning’.

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. 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, an official release stated.

Despite this shift, the report highlights 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). 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 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.

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.

Sandeep Batra, Head, International Wealth and Premier Banking, HSBC India, states, “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. This proactive approach not only strengthens family bonds but also safeguards the long-term sustainability of these businesses. By integrating sound financial advice into this process, families can optimize wealth management, mitigate risks, and strategically plan for growth, ensuring their legacy thrives across generations.”

Published on May 20, 2025