A Study On Father-son Model Of Chinese Family Business Succession

During thirty years reform and opening up, Chinese family business has experienced an development process, from appear to small scale then to large scale. Thirty years later, most of those founders are now approaching old age, the curtain of Chinese family business succession drama has been kicked off. To set up an enterprise is not easy, but what more hard is to maintain it. As is kown to all, the long-term survival probability of family businesses is very low, there's only 30% of them can continue to the second generation, and only 10% can successfully reached the third generation. The succesion of family business is a process, involving the choice of successor, successor training, arrange for predecessors, coordinate interests among family members, and the most important is to choose a suitable successor. In the west, Many family businesses hand over management rights to professional managers, while others realize Co-governance between their children and professional managers. Different from their perfect legal system, social trust system and consummate professional manager market, the vast majority of family businesses in China choose father-son succession model.Since father-son succession model could become our dominant mode of succession, then definitely have their reasons. This thesis first give a detailed and objective description of father-son succession model, including current situation, characteristics, conflict and obstacles, and then analyse influencing factors from the four major aspects, they are traditional culture, institutional background, social background, and the shared vision of family business evergreen respectively. Have a deep study of the most important sub-factor of each factor, it is these factors that influence most of Chinese family business choose father—son succesion model.Hegel put, exist is justifiability. Since we cannot change father-son succession model at present, then how can we maximize its superiority and minimize possible disadvantages? Based on the analysis of the necessity chioce of father-son succession model, this paper discusses the implementation mechanisms and principles of father-son succession model: Interest coordination mechanism, internal governance mechanism,founder exit mechanism, successor training mechanism, assist mechanism of management team to the successor. In accordance with father-son life-cycle model was further, proposed strategy at every stage. In the stage of owner management, succession plans should be drawn up, inherited father's business under the guidance of the project. Regardless the number of children, training should be put on shedule after succession planning had been drawn up. In the stage of partnership, children have officially entered the enterprise's management, full participation in the management of enterprises, as his father's right-hand man. Finish the stage of power transfer really means father—son succession have been completed. Chirdern become the head of the business and the enterprise would make greater achievements.