hisham Kabir business consultant in dubai

What Really Builds a Lasting Family Business (Hint: It’s Not Just Money)

   29 May 2025  Posted in Brands & Advertising

Most people think that family businesses struggle because of lack of profits, competition, or market changes.

But the real reason many of them break down?
It’s what happens inside the family.

Not at the market.
Not in the economy.
Inside the house.
Inside the boardroom.

Some Hard Truths:

📉 70% of family businesses don’t make it to the second generation
📉 Only 13% make it to the third
📉 Just 3% survive till the fourth generation

These aren’t just statistics. These are stories. Stories of trust lost. Of decisions delayed. Of roles confused. Of egos clashing.

As someone who comes from a 4th-generation business family that started in 1894, I’ve seen these stories unfold up close. Some made it through. Many didn’t.

And I’ve realised something important:

Family is your strength — but only when business is managed with structure, clarity, and trust.

What Actually Breaks Family Businesses?

It’s usually not money. It’s not customers.

It’s things like:

  • Father and son not seeing eye to eye

  • Siblings feeling unequal

  • One family member is doing all the work, and others are watching

  • Succession is being delayed because the founder isn’t ready to let go

  • The younger generation wanting change, but being blocked

Mixing business decisions with personal emotions

Experience vs. Adaptability

Many family businesses in Kerala or the Gulf face this classic issue:

The older generation says: “We built this. We know best.”
The younger one says: “The world has changed. Let us try.”

Who’s right? Both.
Who’s wrong? Neither.

But without honest conversations, shared vision, and clear roles, the business becomes stuck — or slowly falls apart.

What Can Be Done?

Here’s the truth:
Every family business goes through these stages.

It’s not about avoiding conflict. It’s about managing it early.
It’s not about control. It’s about clarity.
It’s not about who’s right. It’s about what’s best for the business and the family.

And these things don’t happen naturally.
They need intentional planning, structure, and emotional maturity.

Final Thought

If you’re running a family business — or are part of one — pause and ask:

  • Are our roles clear?

  • Do we have a plan for transition?

  • Is everyone feeling heard?

  • Are we growing — or just surviving?

Because no family business fails overnight.
It fails slowly — through silence, stress, and assumptions.

  • And it doesn’t have to be that way.

    Case study references
    Transgenerational Succession in Business Groups in India”
    Appearing in the Asia Pacific Journal of Management, this article discusses succession patterns and challenges across generations in Indian business families.  Challenges in the Succession Process: The Case of Indian Family Businesses in the United Arab Emirates” This study from the Middle East Journal of Management focuses on succession dynamics among Indian family businesses operating in the UAE. “Indian Family Businesses: Few Clear on Succession, Why Others Need to Worry?” An opinion piece in The Financial Express highlighting the lack of formal succession planning in Indian family businesses and its implications. Succession Issues in Family-Run Companies: How to Deal with Them Published in the Bombay Chartered Accountant Journal, this article discusses cultural and structural challenges in succession planning within Indian family firms.

 

Author: Hisham Kabir
Hisham Kabir Dubai-Based Management Consultant | Specialist in Lean Marketing, Digital Transformation & Family Business Advisory Hisham Kabir is a Dubai-based entrepreneur and senior management consultant with over 20 years of experience in lean marketing, digital transformation, and global e-commerce marketplace expansion. With a proven track record of advising companies across the UAE and India, Hisham helps brands optimize marketing ROI, scale operations, and expand internationally—particularly through platforms like Amazon and Noon. A fourth-generation member of a business family established in 1894, Hisham offers deep insights into the dynamics of multi-generational enterprises. Having witnessed both the successes and setbacks of legacy business models, he now guides family-owned conglomerates through succession planning, organizational restructuring, and sustainable business growth. Previously the Director of Ideal Food and Catering Company in Kochi, he now spearheads initiatives under the Shuraa Synergy LLP umbrella—an enterprise spanning ITES, digital transformation, lean marketing, food, healthcare, and e-commerce marketplace strategy. An alumnus of Symbiosis Institute of Business Management, Pune, with a postgraduate degree in Advertising and Public Relations, and an MBA from Mumbai University, Hisham also serves as Lead Research Scholar at the Boudhik Center for Management Research (BCMR) in Kochi. BCMR is the only Indian business research academy in Kerala, focused exclusively on family business management, in academic affiliation with Symbiosis International (Deemed University). His cross-sectoral expertise and strategic vision make him a trusted advisor for both emerging startups and legacy enterprises navigating transformation in the digital age. A Experienced in recruiting, training and managing F&B teams - Most recently managed a 50+ strong cross-functional team. Proven track record of managing 400+ catering events including numerous high-volume corporate and social events with more than 5000 pax. Further to MBA, completed a Management development programme in sales management from IIM which is among the leading business management school in India. Later ventured into independent entrepreneurial business by launching and retailing a ready-to-cook food gravy paste brand using retort technology called freedom kitchen. With significant insights into front-end retailing and a strong background in the Retail Industry, I shifted to Corporate Path by joining a food-based FMCG company as part of their rural market expansion.  My expertise is in operational excellence, channel sales development, team management, client relationship development, and Event Operations Management. large ticket banquet Management, Menu planning, costing and P&L, and people management. Driven by a passion for advertising have conducted an exhibition titled walk through the history of Volkswagen beetle. where I showcased several print ads released by Volkswagen Beetle in North America from 1958 to 1971. You can follow blogs on www.buyologist.in dealing with trends in marketing and advertising and behavioural economics.