An infographic published by The Economics Times, titled “The Family Affair” has reflected a paradox which states how Family owned enterprises in India contribute to the business growth but fail to attract external talent into their organizations. Is this the beginning of an era of demise in ‘The Big Fat Indian Family Enterprises.’
The team at Options Executive Search has spotted this trend and shared a some takeaways for recruiters. There has been an increase in ‘returning Indians’ and the cause for this is setting forth a new path. Findings state that more and more Indians are either planning to come back or are on their way back to India to become entrepreneurs. This time it is not about coming back to settle for a top management job, but to set up a shop in their home country. To back these findings Venture capitalists and investors those who are spinning the enterprise story acknowledge this revised trend of NRIs.
Recruitment and Now Returning Indians
Internal referral systems and recruitment of employees within the same family worked well for these traditional enterprises to withhold corporate integrity, but it did not prove to be a sustainable act. This has probably shifted the mindset of one-third of family run businesses to pass ownership to next generation non-family management employees to run the relay in the corporate world.
While there are some obvious reasons for such a shift, such as family and ownership conflicts, bureaucratic work culture and limited access to private capital the much amusing reason in inability to attract and retain smart talent to steer their business engines.
Young Indian talent who otherwise would seek for employment in the family dominant enterprises in India have started to choose a self-made path of entrepreneurship. The irony is that the Indian Private Equity markets are welcoming this trend versus a family drive business models with chunky consortium behind them.
Take away for recruiters
For those recruiters who have focused all these years in placing Indian talent back in India in high positions may now have to start recruiting talent for these aspiring entrepreneurs. Recruiters have to gear towards the big ‘One billion entrepreneur’ vision not only for those who want start something on their own but also those who want lead and spearhead MNCs established on the terrain of this subcontinent.
Share your thoughts on how would you respond or shift to accommodate this trend for the new generation.