Family businesses play a key role in Nepal’s economic and socio-cultural structure. They are the backbone of the economy, especially in vital sectors such as agriculture, which accounts for a significant share of GDP and employment.1, as well as in the handicrafts and dynamic tourism sector. These businesses not only create jobs, but also often act as guardians of unique cultural traditions and craft skills passed down from generation to generation.5Their sustainability and development directly impact the economic well-being and preservation of the country's cultural identity.

However, Nepali family businesses today face a complex set of interrelated challenges that require a measured and strategic approach. First, transfer of control– an effective and harmonious transition of leadership from the older to the younger generation, a process often complicated by cultural norms and family dynamics. Secondly, it is modernization - an urgent need to adapt to modern market conditions by introducing new technologies, management practices and business models to improve competitiveness. Thirdly, it is preservation of heritage – a task no less important than the previous ones, consisting of preserving the unique identity, traditions, values ​​and reputation of the company, which are often its main competitive advantage.