In this world all business was a start up by an enterpriser once upon a time and as the progress happened, chances are that the founder naturally thought of leveraging its family set up to support business; because of two reasons:
1. It ensured a dedicated and reliable manpower
2. The hard earned wealth was retained with enterpriser and his family
Today the successful ones of those have become the Giant business houses; who are the worldwide industrial leaders and also have become engines of economic, social and political growth of the nations. They are looked up for fuelling and supporting the sustainable growth of the world.
These business empires of today have all been the start-ups evolving into successful family businesses which were built with vision and passion and all were run with commitment and courage.
It is a fact that the Family business dominates the economic landscape.
According to the latest statistics from the Family Firm Institute; family firms account for 2/3 of all businesses around the whole world. Through family businesses the world economy generates around 70–90% of annual global GDP, and creates 50–80% of jobs in the majority of countries worldwide.
In the United States alone; 1/3 of S&P 500 firms are controlled and managed by the founding family. Family firms account for 89% of total tax returns, 64% of GDP, and also employ 62% of the total workforce.
As we move eastwards on the globe the family culture and the respect for the family as an institution grows stronger and deeper and so does the data showing the importance of family firms!
Finally when we arrive in Asia, we can see in India there is a definite wealth creation opportunity in a Family Business Set up with the family culture is still reigning supreme.
An ever expanding Family Business beyond borders not only creates employment to leverage on our ever expanding labour force in the country (our much touted demographic dividend); it also provides for the growing members of family over generations to get a fair share in its growing profits through global expansion.
Another benefit is; an entrepreneur can stay relatively inflation proof when he earns his profits in foreign currency in an ever depreciating environment for local currency.
Apart from the above internal triggers some external real-time facts to lead family firms towards international diversification and global strategic growth are; aggressive worldwide competition, technological developments, and new growth prospects beyond national borders.
Internationalization allows these firms to take advantage of economies of scale, lower commodity prices, cheaper human resources, know-how in foreign industry clusters and also local opportunities for innovation.
Internationalization is today widely accepted as a crucial determinant of the sustained performance for family firms with these firms having recently seen significant international growth through exports (such as FDI, contractual agreements, joint ventures and a mix of these entry modes in overseas markets).
We prepare our youth to meet future business challenges by empowering and handholding them and prepare your business for global expansion by highly experienced interventions in a friendly, personalised environment to grow and realise this vision.
Last but not the least; an entrepreneur who designs his life around building and growing international business travels a lot, learning from different cultures and enjoying natural beauty which feels like being on a holiday forever.
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