International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Are Indian Family Businesses Better Long-Term Survivors Than Venture-Backed Startups? A Comparative Study of Business Survival and Growth Models in India

Author(s) Mr. Harman Ashish Miglani
Country India
Abstract India hosts two dominant business models: long-established family-owned enterprises and rapidly scaling venture-capital-backed startups. While venture-backed startups are often associated with innovation and rapid growth, family businesses are frequently linked to stability and long-term continuity. This study examines whether Indian family businesses demonstrate higher long-term survival rates than venture-backed startups, and explores the factors contributing to differences in business longevity. Using a mixed-method approach, the paper combines secondary data analysis on business survival and failure rates with comparative case studies of selected Indian family enterprises and venture-backed startups. Key variables analysed include governance structure, leadership continuity, financial risk management, growth strategy, and capital structure. The findings suggest that Indian family businesses tend to exhibit stronger long-term survival due to conservative risk-taking, patient capital, and intergenerational leadership continuity, whereas venture-backed startups experience higher failure rates despite faster early-stage growth and innovation. However, the study also highlights that family businesses may face challenges in scalability and adaptability. The paper concludes that long-term business sustainability in India is influenced not only by access to capital, but by governance, strategic decision-making, and cultural business practices. These insights contribute to a deeper understanding of business resilience within emerging economies.
Keywords Indian family businesses, venture-backed startups, long-term survival, business sustainability, corporate governance, risk management, capital structure, emerging markets, Indian business ecosystem
Field Business Administration
Published In Volume 7, Issue 6, November-December 2025
Published On 2025-12-12
DOI https://doi.org/10.36948/ijfmr.2025.v07i06.63303
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E-ISSN 2582-2160
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