Family Businesses Must Innovate to Secure Future Growth: ISB Report
ARISE framework outlines roadmap for long-term value creation India: Family-owned businesses contribute more than three-fourths of India’s GDP and are expected to play an even larger role in the country’s growth by 2047. However, new research from the Indian School of Business (ISB) highlights that many mid-sized family enterprises are yet to fully leverage India’s rising tide of economic growth, owing to their singular focus on short-term profits i.e., EBITDA, resulting in them holding back from investing in the future through technology and ecosystems, as seen in the case of global companies. A new ISB report titled- ‘Business Innovation- An imperative for Indian family-led business’ highlights that while family-run firms continue to form the backbone of local and regional economies, many still rely on incremental growth models and are not fully capitalising on opportunities in high-growth sectors. This gap is most visible among mid-sized enterprises that are often ...