Chennai: Family-owned businesses contribute to nearly 70 percent of India's GDP and provide over 60 percent of national employment, particularly within micro, small, and medium enterprises (MSMEs), a new report by Great Lakes Institute of Management has revealed.

Titled “Building Entrepreneurial Legacies: Understanding the Role of Family Offices”, the study was unveiled at the Family Business Conclave 2025, jointly hosted by Great Lakes and the Madras Management Association (MMA), under the theme “Creating Entrepreneurial Families - The Role of Family Offices.”

The report, authored by Dr Raj Krishnan Shankar, Professor of Strategy & Entrepreneurship at Great Lakes, highlights the growing importance of family offices in governance, legacy planning, and intergenerational entrepreneurship. With rising private wealth and generational transitions, family offices are increasingly acting as strategic hubs that balance tradition with transformation.

Key findings include: family enterprises currently contribute 70 percent of India's GDP, a figure projected to rise to 80-85 percent by 2047; they provide over 60 percent of national employment; India's top 300 business families hold a combined net worth of ₹134 lakh crore (US$1.6 trillion) and employ more than two million people; and the number of organised family offices in India is expected to exceed 1,000 within the next decade.

Dr Shankar said, “Family businesses are the invisible backbone of India's economy. They don't just create wealth, they create continuity. As business families collectively manage over a trillion dollars in private wealth, the challenge is governance. Family offices act as strategic engines, professionalising decision-making and ensuring entrepreneurship strengthens through succession.”

The conclave featured a keynote by C.K. Ranganathan, Chairman and Managing Director of CavinKare, who emphasised meritocracy over hierarchy in family-run businesses. “Money is a responsibility, not just a privilege. Business acumen is about common sense, emotional intelligence, and sound math. The real mantra is: fail fast, fail cheap, and keep learning,” he said.

Panel discussions included leaders from Mehta Hospitals, TSM Group, Sargam Metals, and Maya Appliances, sharing insights on succession planning, governance frameworks, and preparing the next generation for leadership.

Sam Mehta, Director of Mehta Hospitals, noted: “A family business is about stewardship, not just ownership. A family office isn't a luxury; it's a necessity for structure and longevity. Next-generation leaders must earn credibility through experience and performance.”

Yash Merchant, Director of Brand Marketing and Alumni Relations at Great Lakes, said the institute aims to build a community of family business owners and next-gen leaders through research, dialogue, and education, helping families professionalise, innovate, and sustain entrepreneurship across generations.

The conclave also marked the launch of the Great Lakes Insight Dossier, featuring discussions on succession planning, family constitutions, and the evolving role of next-generation leaders in business.