In India probably more than half of the SMEs are family-owned entities and are built on a foundation of trust, quality, and personal relationships that have spanned generations. However, with constant technological advancements and shifting consumer demands, I think these businesses more often than not face the challenge of how to preserve their rich traditions while embracing modernization.

There is no argument when I say that tradition gives our SMEs their unique identity. Many customers are drawn to family-owned SMEs because of their history, values, and personal service. It is not uncommon for people to feel a deep sense of loyalty to a small local business, often preferring them over large corporations.

However, clinging to these traditions can sometimes limit growth, especially in an era where technology is revolutionising how businesses operate. For instance, I have seen many family-owned businesses hesitant to adopt digital platforms or automation, fearing that such changes may dilute their personal touch or alienate their loyal customer base. But in reality, modernization doesn’t mean abandoning tradition. It is more about finding the right balance. 

By leveraging technology, SMEs can maintain their personal relationships with clients while also reaching new audiences. What I also find concerning is that the younger generation, often tasked with taking over the family business, is sometimes frustrated by the resistance to change. They recognize the importance of innovation and efficiency but feel trapped by the weight of tradition. This creates internal conflict, making it harder to manage the transition between generations. 

In my view, the solution lies in an approach that blends the best of both worlds. Tradition can continue to be a core value, but it should not come at the expense of progress. Family-owned SMEs must adopt modern practices to remain competitive and sustainable in today’s market. They should believe that they can thrive by embracing modernization as a complement, not a replacement, to their treasured traditions – that is the positive change I would definitely like to see in our family-owned SMEs.

I invite your opinion.