Indian family-based businesses

Abstract

Family-based businesses are one of the early business forms in the country. In the 18th century, India was mostly based on agrarian economy. The primary source of livelihood was agriculture. The country's culture is predominantly based on the caste system, which defines the occupation type. The country was lagging in multiple aspects like political,economy, infrastructures, which are essentials in trade. During 1850, India supplied raw materials and became a raw material source for British manufacturers during the Industrial Revolution. Some of the prominent businessmen like Tatas, Birlas, Lahbhai, Walchand, and Kasturibhai rose during this period. Multiple product lines were developed. There was a rise in family-based businesses. The family has grown - in terms of education, knowledge, economy, and business aspects. The next generation of these business owners is educated and studied abroad in multiple disciplines. Some business groups earned expertise in complicated areas as steel (by TATAs). Still, the 19th century, the ownership and control are under family, and professionality has not yet been adopted. Many businesses emerged during the 1980s and 90s. In the 1990s, economy liberalization opened up ample opportunities and challenges. There is intense competition from MNCs, yet the businesses are quick to restructure according to the market and performing outstandingly.