Research On The Inter-generational Transmission Model Of Family Enterprises In Our Country

The report in Seventeenth People's Congress places non-state-operated economy in a very important position. In China, family enterprises as the main form of SMEs in economy play a pivotal role in the social development. There are about 3 million family enterprises, which occupy a total number of China's private enterprises over 80% in our country. As our country is in a history synchronization of the private sector, family businesses are expected in the next five to ten years to enter the transmission period. How to find a way suitable to their own characteristics, to achieve a smooth transition of power, and guide the sustained and healthy development of family enterprises, become a whole China's social broad topic of interest.This article takes inter-generational family business transmission as research object, under the theoretical framework of institutional economics, combine of theory and practical application of the method to our country family enterprise institutional characteristics and the factors in each stage of inter-generational transmission as the main content, establish the family business heritage comprehensive model for family business heritage, and put forward the smooth implementation of the rationalization proposals.First, the article defines family business on the enterprise system: our country family business is a kind of business that one or more family members own main domination right of the enterprise, taking the property right interior inheritance as the characteristic, with continuous distribution of Family degree. Next, comment on the existing research that literature on the inter-generational transmission family business issues related to, which concluded that base on our country family enterprise development status now, the current phase of the study should proceed from reality and focus on research how to guide our family enterprise better solution on the problems in the transmission process is or will soon be encountered.Then, the article analyzes our family enterprises characteristics in the existing formal and informal constraints. Specific features include the following: historical synchronous characteristics are that our family enterprises were founded in the 1980s, the early stage of reform, so they are facing a common problem of power transmission. Entrepreneurs generally have low education level; family planning policy leads family enterprises to face a shortage of successor's situation. Interpersonal networks which directly affect the succession of further corporate can't inherit easily. Cultural characteristics are that for "family culture" of the eldest son of inheritance and property-sharing system lead to a problem of how to harmonize system of property rights and inheritance rights.'Lun'for the role of constraint relations formed a'differential pattern'of trust model,'father-system', the patriarchal rule, form a'paternalistic leadership'tradition. Institutional characteristics are that the enterprise management system is on a low level;'man control'is on high degree. The family members have the right to operate the main businesses, rarely hire outsiders, which propose long-term development challenges; Geographical characteristics are that the environment for the north-south differences in the level of economic development leading to different transmission concepts, economic globalization footsteps the acceleration of the development of a challenge. Next, the article analyzes and summarizes the following several successful foreign enterprises family heritage experiences: First, pay attention to harmony. Family pride will be combined with the corporate culture, through advocacy maintaining family harmony and the common aspiration of wealth, and the enterprises family of mutual-beneficial; second, a weakening identity. Progeny members of the family gradually withdraw from day-to-day management, only has the right to equity gains and major decisions on the ultimate control of the way, dilute entrepreneurs family status; Third, the emphasis on capacity. Focus on the family business, rather than simply the continuation of ancestral values. Pay less attention to pure lineage tenacious insistence, but more attention to election-election.Based on the above analysis, this article use the enterprise system theory to give a general analysis of influencing factors in each step of family business transmission from the aspects of property right inherit, control right inherit, company management structure and contract theory, ect. This part is core of the article. From the research of former literature, we can conclude that the inter-generational transmission process of family business can be divided into three stages, that is, former process - the succession plan for the development; in the process - the process of the implementation of heritage stage; after process– how satisfaction members of the family and business feel about the outcome and the follow-up content. Seriously dealing with factors in each stage affecting the transmission process, is the key that enterprises can achieve the smooth transition from the old generation to the new. Finally, the article establishes a comprehensive model of family business heritage. In accordance with the proposed model entrepreneurs should focus on the following aspects:Firstly, most of family business are in the process of preparing the implementation of the pre - and post, the first model a stage and the second half of the first half of the second phase, so what the entrepreneurs should be concerned with the current primary focus is to determine whether family members have the ability and willingness to complete the transfer of property rights. If the answer is negative, then entrepreneurs should focus on professional managers to find external market successors, and draw on the experience of Japan and Europe. The inter-generational transmission will be divided into shares in the proceeds of property rights and management decision-making power. On the one hand desalinate entrepreneurs and their descendants'identities in the enterprise, equity earning power transmission to future generations to change for the simple rentier class. On the other hand decision-making power will be transmitted to the management ability to access external management of the successors to ensure that enterprises in the transition process smoothly operated.Secondly, if the internal successors have willingness and ability to enter and take over the business, entrepreneurs should choose successors to complete the internal inter-generational transmission. They should focus on the process as well as a good memory in the latter part of the adjustment process related to many factors, absorption and the United States The family concept of enterprise culture, family pride and culture into a single, through advocacy maintaining family harmony and the common aspiration of wealth, and the enterprises family of mutual-benefit.Thirdly, after the transmission has been completed, enterprises should also continue to focus on the next stage of their overall operating stability adjustments, namely, the third phase of the model, such as the satisfaction feedback, the resettlement of entrepreneurial veterans, further staff adjustments, as well as team-building and business plans for the future design work, to enable enterprises to the end of the transition period as soon as possible and to successfully enter a new period of development.