New research by political science PhD candidate Sukrit Puri sheds light on how family-owned firms differ from other businesses when it comes to politics and campaign donations. Puri’s study of thousands of family businesses in India reveals that ethnic identity plays a significant role in influencing their political behavior, which can have a major impact on economic development. Unlike publicly listed corporations, family firms in India tend to donate loyally to a single party of their choice, rather than treating donations as short-term investments for profit maximization.
Puri’s findings suggest new approaches for struggling economies in developing countries, emphasizing the importance of incentivizing family firms through appropriate industrial policies. He believes that governments need to rethink their strategies to encourage openness and entrepreneurship in family businesses, which are crucial for overall economic growth.
Fascinated by the question of why some countries are rich while others are poor, Puri’s research challenges traditional perspectives on the relationship between business and politics. His work highlights the need to understand how family firms operate in developing economies, where they are central economic actors. Puri aims to continue his academic research on business and politics, with a focus on India, in order to contribute valuable insights to the field.
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