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Family-run businesses survive if they adapt to changes, allow professionals from outside

Long-term survival of family-run businesses depends on their ability to adapt to changes, inculcate right governance practices and having a succession plan in place, said HDFC chairman Deepak Parekh.

"Those that truly believe in corporate governance and its benefits are the ones that succeed over the long run," Parekh said Saturday.

"It is quite right when they say that well-run family businesses think in generations and not in quarters – or what is popularly known as “quarter se quarter tak”. Short-termism has often been the downfall of many organisations," he said at an event at Viraasat, celebrating silver jubilee of SPJIMR: Centre for Family Business & Entrepreneurship.

Parekh lauded the focus on education by family-run entrepreneurs for their younger generation, dubbing it the "biggest gamechangee" in family businesses today".

"Better education has helped bring in scale, vision, professionalism and diversification in businesses. Armed with better education, there is a deeper understanding of changing market realities which helps family businesses stay relevant," the veteran professional said.

Another significant step towards achieving success in such business houses is the ability to invite professionals in their board.

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