Business owners throughout Asia share a common aspiration to preserve their legacy. However, their approaches vary significantly—whether through passing it down to family or exiting via a sale—according to a recent report by HSBC Global Private Banking.
Key takeaways
- While 78% of Asia’s entrepreneurs want to keep their businesses in the family, over half have no formal succession plan in place.
- India leads in family succession intent (79%), while Hong Kong, China, and Taiwan show greater openness to selling their businesses.
- HSBC warns that without early, structured succession planning, Asia’s family enterprises may struggle to sustain continuity across generations.
HSBC Study Finds Succession Gap in Asia’s Family Businesses
HSBC’s study, titled “Family-owned businesses in Asia: Harmony through succession planning”, surveyed 1,798 high-net-worth entrepreneurs, each with at least USD 2 million in investable assets, across ten markets in Asia.
The findings reveal a clear tension between aspiration and execution: while many entrepreneurs wish to keep their enterprises within the family, far fewer have formal plans in place to make that happen.
Globally, 78% of respondents said they would prefer to maintain family ownership of their businesses. However, more than half (52%) admitted they had not yet taken concrete steps toward succession planning.
The gap is even more pronounced in Asia, where roughly two-thirds of entrepreneurs in mainland China, Hong Kong, and Taiwan have not mapped out how their companies will continue once they step back from day-to-day operations.
The report also highlights notable differences across markets. In India, the sense of family continuity is strongest, 79% of entrepreneurs there intend to pass their business on to the next generation. By contrast, in Hong Kong, only 44% of business owners share that intention, signaling a more pragmatic approach toward succession.
Meanwhile, in mainland China, Taiwan, and to a lesser extent Singapore, selling the business outright is a more commonly considered exit route. According to the survey, 25% of entrepreneurs in China, 27% in Taiwan, 29% in Hong Kong, and 22% in Singapore expressed interest in selling their enterprises rather than transferring them within the family.
The report also explores generational attitudes: about 60 % of second, and third generation business owners in mainland China said they feel a familial obligation to continue the enterprise, far higher than in India, where only 7 % did.
The Planning Deficit: Intent Without Action
Despite high aspirations, many respondents are unprepared. In the Asian markets analyzed, a majority have not taken formal steps toward succession planning or exit strategies. The deficiency is pronounced in Hong Kong and Taiwan, where 64 % and 65 % respectively report no concrete plan in place.
HSBC executives caution of the risks: legacy intentions alone cannot preserve business continuity. Lok Yim, Regional Head, Global Private Banking, Asia Pacific, stresses the need for early, structured planning. Edith Ang, Head of Family Advisory, Asia Pacific at HSBC, advocates for open family dialogue and hybrid exit strategies combining family transfer and external participation.
Broader Implications & Trends
Family businesses are deeply embedded in Asian economies, accounting for roughly 50 % of GDP in China and 79 % in India. As wealth transitions accelerate in coming years, the choices entrepreneurs make now may reshape corporate landscapes and wealth distribution across the region.
The HSBC report is part of a larger suite of research into entrepreneurial wealth. In its Global Entrepreneurial Wealth Report, HSBC notes that after exit, just over half of entrepreneurs intend to stay active, by investing in, mentoring, or founding new ventures.
The HSBC findings spotlight a key paradox in Asia’s business families: strong cultural emphasis on legacy, yet widespread under-preparedness for transition. As markets evolve, those enterprises that proactively design exit routes, whether through well-structured family succession, partial divestitures, or external sale, may be better positioned to safeguard both value and continuity.
