The Research Of Chinese Family Enterprise Succession And Relative Strategies

Since China’s reform and opening up for30years, family enterprises have beenexisted as a kind of long-term social organization form, which promote thedevelopment of China’s economy and ease the overall employment situation. In thenext ten years, a peak of new old alternant will appear in the area of Chinese familybusiness, the enterprise seek the new successor mainly in the next generation, whocan lead the enterprise development stable and sustainable. According to the statistics,the average life expectancy of family enterprises is only24years. In many familyenterprises after the founders retired, can the second generation of success in thefamily enterprise only30%, the third generation of family enterprise only10%, thefourth generation of only4%. For family enterprise, whether the new enterprisesuccessor can successfully takeover the enterprise and make the enterprise sustainabledevelopment is very important. The problems of how to smooth inheritance, handdown from generation to generation and break down proverb that from clogs to clogsis only three generations are extremely important for our family enterprises toconcentrate on.This paper firstly analyze the problem existed in the process of family enterpriseinheritance through several famous family enterprise inheritance model and somerelated theories; then deeply analyze the present situation and problems of Chinesefamily enterprise inheritance and offer some corresponding solutions; finally, basedon the family business success case, provide some references for the familyenterprises in the successor and corporate governance.The paper mainly believes that family enterprises in the power of the successionof the old new problems is a difficulty, also is the key consideration to ponder. Familyenterprises have three ways to choose their successor: family members, the enterpriseinternal and external professional managers. Most of the family enterprises inconsidering successor, all are first consider family members who related by bloodwith the family enterprises. At the same time, the business owners have the finaldecision because of the deeply rooted Chinese traditional culture. No matter whetherthe final successors are family members or professional managers, the loyalty that successor to enterprise is every enterprise’s first consideration factors.