Research On Control Transferring In Growing Process Of Family Business In China

Firstly, this paper analyzes the specific issues in growing process of family business, proposes the topics we discuss, and relates to the theoretical research about the topics. We define the concepts of the definition and sources of control rights, the definition and classification of family business.Secondly, we analyze the life cycle of the growth of family firms, and discuss the different stages of the life cycle. Lacking of capital and entrepreneurial skills is the prominent problem in the growing process of family business. Family enterprises in the growing process should be fused with the social capitals, such as human capital and financial capital.Thirdly, we discuss some basic types of control transferring, such as the inter-generational transfer, abstracting the financial and human capital. Control rights transfer through intergeneration which is the law that is not strictly a typical way of control transferring.The most important of family business growth is to attract the financial and human capital, by control transferring. There are some main obstacles in control transferring to the transfer of the family business, such as the fear of losing control, poor quality of manager, the imperfect of the external environment. And then we discuss the control transfer in the cases of the attraction of social financial and management capital. Finally, we focus on the relationship between sustainable growth and transfer of power of family enterprises control and analyze the factors affecting control transferring of the family business and the ways for control transferring.