Family-run businesses to give way to professional management by 2035: KPMG

Kochi: The share of family businesses run directly by family members is expected to fall from 49% in 2026 to 12% by 2035, as more businesses turn to professional managers, according to KPMG.

The finding is part of the KPMG Global Family Business Report 2026 and was discussed at the Confederation of Indian Industry (CII) Family Business Conclave in Kochi, which focused on succession, governance and the next phase of growth for family businesses.

The shift towards professional management does not mean family members will lose control of their businesses, the report said. It involves clearer roles for family and non-family executives, defined decision-making powers, performance measures and accountability.


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“Professionalisation does not mean pushing the family to the margins. It means building structures that allow the family to exercise effective ownership and oversight while bringing in the best talent to manage the business,” the report said.

Succession should also be treated as more than a transfer of ownership, with the next generation taking responsibility for the business and developing its entrepreneurial capabilities, speakers at the conclave said.

KPMG identified attracting external talent as the biggest challenge for family businesses, highlighting the need to bring in managers from outside the family where required.

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The conclave also focused on the role of the next generation in driving innovation. Speakers said younger family members should be given the mandate to create and grow the business rather than only preserve the founders’ legacy.

The conclave also covered inter-generational wealth transfer, family governance, next-generation leadership and strategies for scaling family businesses.