New Delhi, Oct. 23 -- Some wealthy entrepreneurs are taking a different approach to inheritance. Instead of giving their adult children regular support or just leaving them a large nest egg, they are buying businesses and then involving their children in running them.

These parents have often sold a different business for a premium in the past few years and want a place to park spare cash. At the same time, many of them want to provide their adult children a purpose, learning experience and framework for long-term success.

For older entrepreneurs who aren't quite ready to retire-but aren't necessarily interested in running the show-buying and growing a business with their children becomes part hobby and part training ground for the next...