Though 85 per cent companies in India are family-run, employing about 57 per cent of the Indian workforce, just 13 per cent survive till the third generation. A third of business families disintegrate because of generational conflict.

This has prompted Pune-based entrepreneurship development organisation Mitcon to start a training programme to help such businesses sustain and grow.

Under the Mitcon-AGE (Academy for Global Entrepreneurship) initiative, the organisation has introduced a year-long management programme for family business. Beginning August, it will not only train, but also mentor family businesses manage themselves.

Vinod Paratkar, Director, points that family-run businesses face challenges unique to their very nature, preventing their growth and prospective global reach. With the global slowdown, India as the market of choice for MNCs adds to the challenges for most small and medium family businesses.

Adds Pradeep Bavadekar, Managing Director, Mitcon, “The rapid change in business environment requires young business leaders to understand the developing economy and present global perspectives. Mitcon-AGE will engage in a variety of interventions to address capacity building, educational and training requirements of entrepreneurs & executives.”

According to CII Family Business Network (India chapter), the gross output of family-run businesses accounts for 60 per cent of GDP or approximately 90 per cent of India’s industrial output. They contribute 79 per cent of organised private sector employment and 27 per cent of overall employment, after only government and PSUs.

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