The Boundaries Of The Family Business

The booming of family enterprises has made many economistsput their interests in this form of enterprises. For all many economists have studied their advantages and disadvantages, they neglect the cultural and institutional environment in which family enterprises exist.In fact, as a form of enterprises, our family enterprises have their own growing backgrounds. Or we can't answer why there are so many forms of enterprises. In special cultural and institutional environment, family enterprises and non-family enterprises have their own operational costs. These costs play an important role in choosing the form of enterprises between family enterprises and non- family enterprises. People will prefer the former when the operational costs of family enterprises are relatively lower; or else they will prefer the latter.We haven't enough proofs that show family enterprises will be replaced by non-family enterprises. And people will adjust the limit of family enterprises according to the operational costs.