Chinese Family Business System Study

As an economic organizational form, family business has been the one having a long history both at home and abroad. With the development of domestic market economy, family business are having more and more significance in economic and social life, changing from small to big in scale, functioning from weak to strong, developing from slow to fast. It has become the most active force with great potential in boosting the economic growth, enlarging the employment, increasing people's income and building a harmonious society. It not only occupies a high position in traditional China, but also is an important organizational form in enterprise in the more advanced foreign countries that have good information channels and huge market. Of the 500 enterprises listed top in "Fortune", one third of them are controlled by family business and they are all renowned companies in the world. For the case in China, most of the private companies showed a strong family business trend since China launched the open-up policy in 1980s. They had made great contributions to the economic development in China. These family businesses had experienced fast development from small to big in number, from traditional fields to high-tech fields as information and biology, from scattered small factories to large-scale joint ventures. They are of great importance in domestic labor market, social stability and economic growth.But what is contrary to the facts is that in economics, family business was an old-fashioned concept, which had been replaced by modern enterprise rules. People tend to associate it with sluggish economy and low efficiency. If it were a low-efficient form, the pervading family business both at home and abroad would be the one that is contrary to the "rational choice" by those entrepreneurs. We surely agree that family business is an economic combination of family rules and enterprise rules. Yet it is one that seeks existence in the competitive market. Under the principle of free market competition, its goal is to make interest in the market. Without efficiency as its foundation, it's irrational for those forerunners in family business and for the enterprise rule choice they made, let alone for family interests. But family business did exist in our economic life. Existence is reasonable. Then what are the reasons for its reasonable existence?Basing on this knowledge, the dissertation is to probe the theoretical structure of family business rules from the perspective of economics. It's to analysis its originality, existence and development, and to put forward the strategic perception and practical pattern for family business from different aspects as property rights, remolding structure and existing environment.There are six approaches to this issue in this dissertation, including three parts.Part one is the general introduction, including chapter one and two. Chapter one is to analyze its background, significance, approaches and theory innovation. Chapter two is to define family business with the support of economy theory, which is to lay foundation for theoretical prove afterwards.Part two including chapter three and four is the theory part. Chapter three mainly focus on the property rights. It's to probe the evolutionary process of family business in China and to give the definition of property rights contract in modern economics. The theoretical definition and pattern of family business property rights inheritance are to be put forward in this chapter too. Chapter four is to analyze the organizational structure of family business. It is to give its character and definition, and to give modern Chinese family business innovation structure.Part three including chapter five and six is to prove the growth of family business in modern China. Chapter five analyzes the growing environment for family business, together with its developing process. Chapter six is to give the strategic analysis on the development of modern Chinese family business. The strategic definition, its character and its economic theory foundation have been given out in this chapter. The main focus is the continual developing strategy for family business in modern China.