Archive · 31 Jul 2026
Indian Family Businesses Delay Succession, Facing Costly Consequences
Founders of family businesses in India often keep running the company for many years, so they never plan to hand it over.
This is because handing over means they have to let go of control, which feels uncomfortable.
Many families think giving a child the company is the same as giving them the job, but the child still needs to learn how to run it.
The article says that giving a child only a seat at meetings or only letting them work when things are good makes them unprepared for tough times.
The expert, Dr. Yogish Arora, says the best way is to start early, test the child’s skills honestly, and slowly share the company’s knowledge.
He also says it’s important to look at all the key jobs, not just the top one.
If a family waits until a crisis happens, the company can lose important people and memories.
By planning early, the business can keep running smoothly after the founder leaves.
The article shows that planning is about keeping the company alive, not just about the founder’s exit.
Founders delay succession because it forces them to relinquish control, not due to lack of readiness.
In India, founders stay active into their 70s, so no crisis triggers planning, leading to late, costly handovers.
Many families confuse inheritance (ownership transfer) with succession (transfer of capability), leaving heirs unprepared to run the business.
Common mistakes include giving successors exposure without decision‑making authority, testing them only in good times, and focusing solely on the top role while neglecting the leadership pipeline.
Dr. Yogish Arora recommends early, objective competency assessments, mapping critical roles, and gradually transferring knowledge to build a resilient succession plan.
- Who
- Dr. Yogish Arora, Director & CEO of HR Anexi
- What
- Explains why succession planning fails in Indian family businesses and offers solutions
- Where
- India
- Why
- Founders resist relinquishing control and lack crisis triggers, causing costly late handovers
- Key Insight
- Succession is the first major decision that asks a founder to make himself less important.
- Common Mistake
- Confusing inheritance (ownership transfer) with succession (transfer of capability).
- Recommended Action
- Early competency assessments, role mapping, and gradual knowledge transfer.
- Cost of Delay
- Loss of institutional memory and talent, leading to long-term instability.
- Expert
- Dr. Yogish Arora, Director & CEO of HR Anexi.