Family-owned businesses have been the backbone of the Indian economy, significantly contributing to GDP, employment, and economic development. Spanning sectors like agriculture, retail, manufacturing, and services, they have traditionally been male-dominated. Men were typically the decision-makers and financial providers, while women were relegated to supporting roles within the household.
In this traditional framework, women’s contributions often went unnoticed and uncredited. Their roles were generally confined to maintaining accounts, nurturing client relationships, or supervising household-related activities connected to the business. Cultural norms dictated that women were primarily responsible for the family’s emotional needs. This mindset created an invisible barrier, limiting women’s opportunities to engage actively in business leadership roles.
India’s educational shift empowers women leaders
The last two decades have seen significant changes in India’s educational landscape, with more women accessing higher education than ever before. This shift has empowered women to take on more visible roles in family businesses as leaders, CEOs, managing directors, and board members.
Examples of successful women entrepreneurs
An entrepreneur and musician, Ananya Birla has launched successful ventures like Svatantra Microfinance and Mpower. Her involvement in the Aditya Birla Group illustrates the seamless integration of legacy and modernity.
Ananya Birla
The Executive Chairperson of Godrej Consumer Products, Nisaba Godrej has redefined the company’s strategies, focusing on consumer-centric approaches and global expansion. Under her leadership, the company has seen a significant increase in profitability.
Nisaba Godrej
Women’s increasing access to higher education has been a game-changer, equipping them with the skills and knowledge for leadership roles and informed business decisions. Programmes like the Ladies in Family Enterprise (LiFE) by S.P. Jain Institute of Management and Research (SPJIMR) are specifically designed to build a basic understanding of business and family dynamics, helping women explore their roles in family businesses and start new entrepreneurial ventures.
Challenges for women in family businesses?
Despite progress, women in family-owned businesses still face significant challenges, including gender bias, balancing work and family life, lack of female role models, and limited access to financial resources and business networks.
Gender bias and stereotypes
Traditional biases question women’s capabilities in leadership roles. Women often must prove their legitimacy as leaders.
Work-life integration strategies
Balancing work and family life, often called the ‘double burden’, is a common challenge. Women are expected to manage household responsibilities while contributing to the family business. Flexible programmes like LiFE by SPJIMR offer a solution, allowing women to pursue their education and business ambitions alongside their daily routines.
Limited support systems
Building a solid support network is crucial for entrepreneurial success, but women often struggle in this area. Professional networks are often male-dominated, leaving women feeling isolated. Enrolling in women’s leadership programmes like LiFE by SPJIMR helps women network, interact, and become part of the SPJIMR Family Business & Entrepreneurship alumni community. The LiFE programme also provides three unique mentorship opportunities to women — LiFE Confidante, LiFE Coach, and LiFE Marshal.
How can women in family businesses overcome challenges?
To support women in family businesses, governments and organisations should consider implementing the following measures:
Skill development programmes
Specific training programmes targeting women entrepreneurs can empower them with necessary skills and knowledge. For example, the LiFE programme by SPJIMR equips women to explore their roles in family businesses and entrepreneurial ventures.
Programme modules
Understanding self
Understanding a business
Understanding your product/service and target customer
Understanding target customers
Basics of finance
Technology & its use in business
Family dynamics
Leadership and developing an entrepreneurial mindset
Flexible working conditions
Facilitating part-time roles and offering remote working options can help women balance home and work life. Programmes like LiFE provide flexibility, allowing women to pursue education and business simultaneously.
Networking platforms
Creating women-only business networks can offer much-needed mentorship and support. The SPJIMR alumni community provides a platform to network, interact, and share experiences.
Financial incentives
Offering tax breaks or subsidised loans can make it financially feasible for women to join or start a business. Such incentives encourage more women to participate in the family business landscape.
How will family businesses flourish with women leaders?
Research by KPMG indicates that women in family businesses often defy traditional stereotypes, bringing unique leadership abilities. The impact of female leaders is often magnified in business cultures that embrace feminine values.
Women’s natural tendencies as nurturers and caregivers position them as “chief emotional officers,” contributing significantly to the success and longevity of family enterprises. Their presence adds valuable resources that family businesses can leverage. With distinctive and transformative leadership styles, women offer exceptional judgement and perspectives, making them comprehensive managers and leaders.
Programmes like the Ladies in Family Enterprise by S.P. Jain Institute of Management and Research (SPJIMR) are pivotal in this transformation, providing women with the knowledge, skills, and confidence to take on leadership roles. The future of family businesses in India looks brighter, more balanced, and more successful with women at the helm. Embracing this change, allows family businesses to harness the full potential of their diverse talents, leading to a more prosperous and equitable business landscape.
