Family Run Business in India: Balancing Old Wisdom with Global Realities

India has a long tradition of family run business houses. They have achieved success over the decades and today dominate the Indian business scene. This success was achieved through management practices and wisdom that were handed down from generation to generation. Some of the traditional wisdom of managing family run business has paid high dividends to the owners and had been responsible for their growth till the early part of the 1980s. However, these very practices seem to have become the greatest bottlenecks for future growth. The emergence of the global market scenario and the liberalisation of the Indian economy have begun to put new demands for change in the practices and the methods of managing the family organisation in India. This paper focuses on identifying the major factors that contributed to the growth and success of family run business. It also looks at the new challenges facing these organisations, which are critical for their very survival in the new economic environment. Finally, the paper provides a new perspective on re-orienting the family-run businesses, which will ensure their survival and growth into the new millennium.