Less than a third of family owned businesses in the country have succession plans in place. This is according to a study by global HR consultancy Hay Group. Global research by the group found that only 19 per cent of family owned businesses have a plan in place when one generation retires and similar trends also play out in India. Citing its research, Hay Group said more than 72 per cent of family owned businesses do not survive beyond the third generation. Moreover, research found that only 55 per cent of family businesses survive after ten years of existence while the same comes down to 27 per cent after 20 years.
Source: The Financial Express