India’s wealthy are the most entrepreneurially minded in the world: HSBC report

The country’s wealthy entrepreneurs show more signs of serial entrepreneurship than their peers in the rest of the world, according to 2023 HSBC Global Entrepreneurial Wealth Report. A study conducted by the global financial services company shows that almost half (47 per cent) of entrepreneurs in India are planning to invest in future businesses, further fuelling their trend of serial entrepreneurship among wealth families in India.

“The India’s wealthy individuals are more likely to come from a heritage of entrepreneurship or a family business background (62 per cent), more likely to pass their business on to family (56 per cent) and more likely to transition from one business endeavour to the next (74 per cent),” HSBC said.

The study further highlighted that entrepreneurs in mainland China (61 per cent), Singapore (57 per cent), India (56 per cent) and Hong Kong (53 per cent) want to transfer their business to the next generation of their immediate family or to another family member. However, the figure is much lower at just 36 per cent in France.

The survey further showed that entrepreneurship in India willing to talk about wealth transfer have perhaps a clear plan in place, with only 5 per cent saying they don’t have wealth transfer plans in place compared with 11 per cent globally.

“It could also be linked to some apprehensions they have for the next generation taking over with over half (54 per cent) citing work ethnic as a concern, and 41 per cent lacking a trust in their ability to run the business. Investing time and energy to clear planning and structures well ahead of an exit is a good opportunity to align on purpose, plans and values,” HSBC said adding that entrepreneurs in India are truly international.

The study showed that almost three quarters (73 per cent) are operating business that trade beyond India’s border and 63 per cent have family members across borders, enjoying the opportunities to be found in other markets.

Sandeep Batra, Head of Wealth and Personal Banking, HSBC India, said, “Entrepreneurs in India are risk-takers with deep rooted traditional business acumen and high resilience. They have a global outlook with a strong pulse in the country of their business. Protecting and growing wealth for their next generation is another clear objective. We have the capability to help them in their growth journey including providing international network, full suite of banking services and expert guidance in wealth management and succession planning.”