Family-run businesses could account for just 12 per cent of enterprises by 2035, down sharply from the current 49 per cent, as they increasingly turn to professional management to cope with growing scale, complexity and global operations, according to the KPMG Global Family Business Report 2026.
The findings were highlighted at the CII Family Business Conclave — Preserving Legacy, Powering Purpose, Accelerating Growth — which brought together family-business promoters, next-generation entrepreneurs, professional managers, investors and advisers to discuss succession, governance and the future of family enterprises.
The report points to a growing shift towards professionalisation, with family businesses increasingly looking beyond the family for leadership talent and management capabilities.
Transferring responsibility
Speakers at the conclave, however, stressed that professionalisation does not necessarily mean diluting family ownership or identity. Instead, it involves establishing clear decision-making structures, performance standards and accountability for both family and non-family executives.
Succession, speakers said, should also be viewed as more than a transfer of ownership. It involves transferring responsibility, purpose and entrepreneurial capability to the next generation.
The next generation should be given the mandate to create rather than just handed over the responsibility to preserve, speakers said. While the founders’ values and purpose provide the foundation, subsequent generations need to understand and adapt them to contemporary business realities.
The discussions also underlined the increasing role of external talent in family enterprises. KPMG identifies attracting external talent as the biggest challenge for family businesses, highlighting the need to expand leadership capabilities beyond family members where necessary.
K Ellangovan, Managing Director, INKEL, and Kerala Infrastructure Fund Management (KIFML), in his inaugural address, stressed the need for a well-calibrated succession plan. Family-owned businesses need to balance legacy and purpose with growth while preparing for intergenerational transition.