What’s on the Mind of the Emerging Generation? Insights from Indian & Southeast Asian Executives

Family underpins the cultural and social fabric of India and Southeast Asia — including their businesses, where family enterprises generate over 75% of India’s GDP, one of the highest percentages globally. Many family-owned businesses have demonstrated remarkable success, thriving across market cycles and growing over multiple generations.

Across multiple Asian markets, family enterprises, large and small, are witnessing a significant generational change in leadership.

Over the past few years, extensive research on family-owned businesses has focused on the generation leading the enterprises. However, with the emerging generational shift, it is increasingly important to understand the vision, aspirations and challenges of the next generation. With that goal in mind, Russell Reynolds Associates interviewed many future leaders of successful family enterprises based in India and Southeast Asia, from second-generation entrants to established members of the fourth-generation. These are well-established, family-owned conglomerates with annual revenues ranging from $300 million to over $10 billion.

Over six months, we spoke with individuals spanning from early-career entrants to Chief Executive Officers. While these enterprises differ in industry, location and scale, what’s on the minds of the emerging generation is remarkably similar.

They see themselves as the stewards of a multi-generational legacy

The next generation views themselves as guardians of a successful multi-generational legacy and are fiercely protective of that position. They are acutely aware of their responsibility and recognize that family name and legacy are associated with business success, making it imperative for them to succeed. Many believe that preserving their family’s legacy is the greatest weight on their shoulders. “[I’m] here because of what my father and grandfather have done — [I] never forget that. They give [me] the platform,” one respondent said.

Yet while they are committed to maintaining previous generations’ success, they don’t rely solely on tradition. They contemplate their own leadership styles and how to blend core values and modern ideas. “We want to grow as responsible owners of the business, while not losing the original family values, which have influenced the success of the business,” one interviewee said. Recognizing this balancing act and the pressures involved is crucial for supporting and effectively engaging with these leaders.

They face career anxiety

Despite their privileged position, these young leaders grapple with significant career anxiety. Although there is less pressure, than in past generations, to stay in the family business, the option to forge new paths introduces a different set of challenges. Leaders or potential successors who leave the family business often worry about their own career trajectories. “If I break away to do something different, will I be able to find market credibility for who I am?” one participant asked.

Conversely, those who stay often wrestle with fears of failing to add further value or being labeled as entitled. One interviewee was “anxious about leaving a mark.” With personal and business success so intertwined, these leaders face immense pressure to prove themselves professionally. That pressure often results in working doubly hard, with many concerned about their ability to generate growth in an already well-established business and not slipping into wealth-preservation mode.

They value family unity

A critical concern for the emerging generation is maintaining family harmony, while making business decisions. One respondent said succinctly, “I do not want to risk losing my siblings over business conflicts.”

Perhaps learning from past familial disputes, the emerging generation demonstrates more awareness and understanding of the complexities in balancing family unity and business interests. Many identify potential pitfalls and come up with possible solutions before issues arise. For example, some have created “efficient and structured family forums” with one family member acting as a moderator, while other leaders hold monthly family meetings to work through issues.

Others see financial success as a potential pitfall and try to “structure the business and wealth early so that we can avoid future conflicts [over money].” This approach marks a significant shift from previous generations, which may have focused more on immediate business needs than on long-term family cohesion. For these emerging leaders, preserving family unity remains a top priority and significantly influences their strategic decisions and business practices.

The emerging generation is likely to drive significant changes to their businesses. The following characteristics differentiate the emerging generation from traditional leadership and will influence change and transformation in family-owned businesses in the coming years.

Openness to new ideas

As family businesses mature and progress beyond the current generation, this new wave of leaders brings a fresh perspective and increased self-awareness of their strengths and weaknesses.

This generation acknowledges that they may not always be the smartest person in the room. They understand that humility and external support are vital to their success and are not afraid to seek help and advice from coaches, mentors and industry experts. By acknowledging their limitations, they demonstrate a proactive approach to leadership, ensuring they take advantage of outside resources to complement their strengths and drive business success. A cultivated network of trusted advisors ensures that their leadership style is informed, reflective and innovative.

Furthermore, these young leaders aspire to make their mark and differentiate themselves from their predecessors. Many see their role as changemakers, driven by a desire to innovate while maintaining tradition. “I have realized that with each generation, we have to transform and unlearn,” one interviewee said. This mindset reflects a profound understanding of their job and their role.

Their openness to transformation extends to an enthusiastic interest in trending themes such as ESG, technology and artificial intelligence. By integrating these into their businesses, they not only build their credibility but position their companies as modern and leadership as game-changing. Their curiosity and willingness to embrace new ideas are among the most notable distinctions from previous generations, enabling them to navigate complex challenges with agility and foresight.

Deliberate leadership

As they gradually rise in their businesses, these emerging leaders strive to be thoughtful and considerate about their leadership style. They grapple with questions like, “What kind of leader do I want to be?” and “What is the right path for me?” They understand that the business landscape today is vastly different than it was when their companies were founded, and they recognize the importance of forging their own path and leaving behind a legacy of their own.

A common pathway for these leaders involves starting at the bottom and working their way up. Typically they begin their careers in smaller, operational roles in which they gain hands-on experience and a deep understanding of the business. As they demonstrate their capabilities and commitment, they take on larger responsibilities, managing more aspects of the business and contributing to strategic decision-making. This transition is deliberate and often takes years to play out, allowing them to build experience and confidence, while establishing their own circle of trusted colleagues and mentors across the business.

As their businesses mature, many also take charge of diversifying the family’s wealth, while recognizing the importance of safeguarding and expanding their financial legacy. They seek new personal revenue-generating opportunities and family brand growth – either formally, through the creation of a family office, or informally, through individual ventures. This proactive approach not only helps secure their personal financial legacy, but also positions these leaders to capitalize on innovative trends and sunrise sectors. By exploring different investment vehicles, they ensure that the family’s wealth is both resilient and adaptable to changing market dynamics.

Looking ahead

The next generation is on the way up: They are becoming leaders of multibillion-dollar companies and influential board members. Their thoughts and actions will shape industries and create significant economic impact. Unlike their predecessors – who often lacked the freedom to take risks—this new generation brings fresh energy and ambition. They are educated, motivated and deliberate in how they approach leadership, the businesses they want to build and the legacy they intend to leave behind.

Understanding their mindset provides insight into the future of family business leadership, the ongoing transformation due to generational shifts, and these leaders’ potential impact on some of the most significant businesses in the region. The emerging generation stands on the cusp of significant leadership transformation, ready to navigate the complexities of modern business, while honoring their familial heritage.

Authors

Sanjay Kapoor leads Russell Reynolds Associates’ Family Enterprise Advisory practice in the Asia Pacific region. He is based in New Delhi.
Rahul Thapar is a member of Russell Reynolds Associates’ Family Enterprise Advisory practice. He is based in Mumbai.
Rohit Tanwar is a member of Russell Reynolds Associates’ Family Enterprise Advisory practice. He is based in New Delhi.