Mumbai, July 11, 2024: Bharatiya Vidya Bhavan’s S.P. Jain Institute of Management and Research (SPJIMR) Centre for Family Business & Entrepreneurship (CFBE) is delighted to announce its contribution to the report ‘Unlocking Legacy — The Path to Superior Growth in Family Businesses’, in collaboration with the STEP Project Global Consortium and KPMG Private Enterprise. This study delves into the intricate balance between tradition and innovation in family businesses, highlighting how legacy can drive long-term success and sustainability.
The STEP Project Global Consortium (SPGC) is a global research initiative that explores the entrepreneurial dynamics and performance of family businesses across diverse cultural and economic contexts. It aims to provide insights and guidance for family businesses to thrive across generations.
The report, enriched by detailed data analysis, academic insights, and firsthand experiences from family business CEOs, provides an understanding of how legacy shapes business performance and guides strategic choices. It explores whether family businesses should expand into new markets, invest in cutting-edge technology, or diversify while staying true to their traditional operations.
“Legacy connects generations and ensures the continuity and heritage of entrepreneurial success. It shapes the long-term vision of the family business and guides strategic choices, helping to determine when to lean on tradition and when to embrace the unknown,” said Prof. Tulsi Jayakumar, Executive Director, CFBE, and Chairperson, Post Graduate Programme in Family Managed Business (PGPFMB) at SPJIMR.
Forty-three percent of the 2,683 respondents in the survey reported high business, environmental, and social performance, reinforced by strong legacies. This underscores the significant link between the strength of family business legacies and their overall performance.
The research identified five key legacy components: material, biological, social, identity, and entrepreneurial legacies. These components significantly impact family business results, with those reporting strong legacy scores also exhibiting high business performance and sustainability results.
“Our findings revealed that the highest-performing family businesses often have the strongest legacy scores,” added Prof. Jayakumar. “This compelling link between legacy depth, financial performance, and sustainability practices highlights the essential role of legacy in future-oriented, sustainable growth.”
Conducted in the latter part of 2023, the survey gathered insights from 2,683 family business CEOs across 80 countries, territories, and regions. The report includes findings from regional roundtable discussions with 21 family leaders and next-generation members, shedding light on the “legacy paradox”—where legacy can serve as both an asset and a liability.
“Thanks to SPJIMR’s involvement, we were able to capture a substantial number of responses from Indian family businesses. Their dedication and expertise significantly contributed to the richness and diversity of the data collected. SPJIMR’s efforts have been vital in highlighting how Indian family businesses balance legacy and innovation to drive enduring success,” said Andrea Calabrò, Global Academic Director, SPGC.
“SPJIMR is proud to have contributed to the report, which provides valuable insights into the intricate dynamics of family businesses. By understanding how legacy influences both business performance and sustainability, we can better guide these enterprises towards enduring success. These new findings will help family businesses build a legacy that ensures sustained performance and growth for generations to come,” said Prof. Varun Nagaraj, Dean, SPJIMR.