Sunil Kant Munjal, chairman of Hero Enterprise, emphasized the vital role family businesses play in the global economy, highlighting their growing influence and contribution. Speaking at the Indian Family Business Awards in New Delhi on December 3, Munjal remarked that family businesses are often misunderstood despite their critical economic impact.
“Family businesses have become a global phenomenon,” Munjal said. “Around the world, families are increasingly appointing the most capable individuals to manage both the business and the family office, making the family office an even more pivotal element of the overall business structure," he said at the event co-created by Moneycontrol Pro and Waterfield Advisors.
Munjal noted that family offices are now a significant source of funding for startups and early-stage companies. However, he pointed out that they are not the sole financial resource, with angel networks, venture capital funds, and private equity also playing vital roles. “Family offices bring not just capital but also valuable expertise and mentorship, which are crucial for the success of emerging enterprises,” he added.
In addition to financial management, Munjal underscored the importance of effective communication within family-run businesses to address conflicts and maintain harmony. He described these challenges as “human issues” rather than business problems.
“The importance of communication is often underestimated,” he said. “Within families, we sometimes avoid sharing information, either due to a lack of trust or fear that the other person may not handle it well. Open communication channels, particularly between generations and between those involved in the business and those who are not, can help resolve conflicts early on.”
Munjal concluded by emphasizing that transparent communication is key to fostering stronger relationships within family businesses, ultimately contributing to their long-term success.
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