Years ago, Karim, a skilled fisherman, had a secret trick to catch fish. He would quietly tap the water three times, toss some crumbs, and wait. Like magic, the fish always came. Proud of his "foolproof" method, he passed it down to his grandson, Rafi. One day, Rafi tried the same trick at the river. Confidently, he tapped, tossed, and waited without luck. Suddenly, a loudspeaker blared: "Feeding fish is prohibited. Cameras are watching!" Startled, Rafi saw the fish swim off, unfazed. Morale of the story: Times and contexts change. What worked in the past may not work today, especially when the fish are smarter, and the rules are stricter.

In Bangladesh, family-owned businesses form the backbone of the economy. From textile and manufacturing to retail and trading, these enterprises contribute significantly to employment and GDP growth. Generational businesses such as Abul Khair, TK, PHP, Akij, Ispahani and BSRM Group showcase the potential of visionary leadership and hard work. However, as the market evolves, many family business owners struggle to move beyond the success models of the past. Relying on business practices that are now outdated, they fail to adapt to modern challenges and sustain long-term success.

There's a growing trend of new generation groups venturing into new industries -- from garments to telecom or electronics to FMCG. Oftentimes, many entrepreneurs try to clone the same success formula from the past and rely on their "old loyal brigade" -- employees who thrived in the fax machine era but now blink cluelessly at mentions of TikTok or AI. In today's fast-paced, Gen Z-driven world, handing a typewriter to a digital native won't cut it. Injecting fresh ideas; modern expertise, and addressing the generational gaps are critical for sustained success in any new venture.

Another issue with family business founders is their hesitation in delegating authority or lack of professional coaching to prepare the next generation. Despite having well-educated and competent successors, they seem to think, "You're competent but not just yet." Many wait until God's call comes, only to realise it is too late for the business and the baton.

Family businesses in Bangladesh often begin with a visionary leader who identifies market gaps, takes risks, and builds a thriving empire. In earlier times, simple structures, close-knit leadership, and stakeholder relationships worked in driving growth. But rapid economic developments in the post-independence era and through the 1980s and 1990s created immense opportunities. The ready-made garment industry, for instance, thrived on export-friendly policies and cheap labour. However, strategies like low costs, limited competition, and minimal regulations that succeeded 30 years ago are no longer effective in the present era of globalisation, technological advancements, and fierce competition.

In Bangladesh, new generation family business owners often replicate their predecessors' success models, failing to acknowledge the rapidly evolving business landscape shaped by digitisation, changing consumer behaviour, global competition, and environmental concerns. According to a 2022 International Finance Corporation report, only 30 percent of South Asian family businesses survive into the third generation, a trend mirrored in Bangladesh. What hinders progress are mainly resistance to change, emotional attachment to the founder's legacy, reliance on outdated loyal employees, and centralised decision-making. For long-term growth, businesses must embrace modern expertise, decentralise leadership, and adapt to the dynamic global market to stay afloat.

A few conglomerates demonstrate how modern practices, diversification, and sustainability initiatives are key to success. Preparing the next generation through education, coaching, and exposure ensures long-term growth and competitiveness.

The future of family businesses in Bangladesh is hopeful for those who embrace change, nurture innovation, and empower the next generation. By blending tradition with transformation, these enterprises can thrive, leaving a legacy of resilience, progress, and lasting success.

The author is president of the Institute of Cost and Management Accountants of Bangladesh and founder of BuildCon Consultancies Ltd