On a quiet afternoon, over cups of chai and candid reflections, I conversed with an entrepreneurial couple who have been steering their industrial automation company for over 25 years. As they spoke about their journey, the conversation gently veered towards their two daughters—their pride, hope, and perhaps, the future of their legacy. The elder daughter is pursuing an MS in Robotics at a prestigious Ivy League university in the US, while the younger one, inspired by her mother, is charting her path as a Chartered Accountant. “Family business,” said the husband, who serves as the company’s Managing Director, “is not just a career—it’s a lifelong commitment. We have ensured they get the best education and exposure, but entering this space isn’t about entitlement. It’s about earning your place, proving your worth.” At that moment, the complexities of succession, merit, and legacy quietly revealed themselves, setting the stage for a deeper exploration of the evolving role of daughters in family-run enterprises.
Succession planning is one of the most critical transitions in a family business for its business continuity. It reflects not just the survival of the business, but also the legacy and values passed down through generations. However, this process is often influenced by traditional gender norms that position sons as the default heirs, while daughters are seen as secondary or excluded altogether. As per the PwC India Family Business Survey 2019, there are 15% (Average) women in family business at a board level, which is much lower than 21% of the global average. Research shows in many emerging economies where cultural expectations around gender roles can strongly shape succession decisions. This article explores some of the key issues relating to the traditional gender bias in choosing the successor in the family business, opportunities, and challenges daughters face in family business succession.
Intention
Family businesses are not only economic entities, but they are also cultural institutions. These businesses are often tightly built with family identity and associated social status. Generally, patriarchal norms often dictate familial responsibilities. Daughters are traditionally expected to prioritize their marriage and become a part of a different family, while sons are groomed to take up ownership responsibilities of the family business. Traditionally, these expectations have always influenced how daughters are perceived in succession conversations, often undervaluing their potential.
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Traditional Gender Biases in Succession Planning
The process of succession planning in the family business has long been influenced by deep-rooted gender biases that will often sideline daughters in favour of sons. Even in the current times, where gender diversity and inclusion are gaining much-needed governmental as well as corporate support, the actual transfer of power within family firms continues to reflect a traditional preference for male heirs, barring a few exceptions due to cultural and familial stereotypes that influence such norms and decision-making. Gender stereotypes, not evidence of leadership abilities, have continued to shape leadership transitions.
Challenges and Barriers
Daughters continue to face significant obstacles in their succession journey in the family business as societal norms still prioritize sons as business heirs most of the time. Another assumption that plays out is the post – marriage shift of the daughter’s allegiance to another household and family wealth management in such a scenario. This assumption prevents daughters from getting groomed or substantially involved in business. As the grooming process and expectations from the early days are different which are available to sons, it results in a lack of confidence and familiarity with business operations when succession time arrives. Despite their capabilities, daughters still face a host of systemic and cultural challenges when it comes to family succession.
Emerging Opportunities for Daughters
In recent years, daughters from the family business have gained significant access to higher education including international exposure as well as professional training. It has shaped their business orientation along with aspirations to get involved in the family business and take it to the next level. This transition is helping them to challenge the traditional perception that succession is a male prerogative. In some families, especially those where capability is valued without any biases, daughters are seen as equally or even more suitable successors than their male siblings based on demonstrated merits. The rise of successful female entrepreneurs is also establishing much-needed role models that will inspire younger women to aspire for leadership positions. Peer network groups and external mentors are also enabling the readiness of daughters to make a difference.
To conclude, parental attitudes, especially those of the family business owner will play a decisive role in shaping daughters’ succession outcomes. When fathers express trust, actively involve daughters in the business process, and value talent over tradition, family businesses can create a future that reflects the strengths of all their members, regardless of gender.
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