The Governance Models Research Of Ningbo Small And Medium-sized Family Business

Family business is one of the important forms existing in China’s economic and social development. It promoted the growth of the national economy in our country,reduced the labor employment dilemma, and also made a great contribution to regional economic development. Ningbo, as the pioneer of modern economic development, the private economy has been the main safeguard of economic development. And small and medium-sized family enterprise is the main force of economic development of Ningbo. They are accounted for the active force sustained and rapid economic development, and they make a significant contribution to the social stability in Ningbo area.There are a lot of academic researches on family businesses governance model,but specific to the small and medium-sized family business, especially for ningbo,a area with distinct groups characteristics,the research is not much. Due to historical and limited resources, Most of Ningbo’s small and medium-sized family businesses choose relatively conservative family-based governance pattern,, but this mode severely limits the family enterprise’s long-term development.Therefore, through case studies, this research,is going to discusse the main factors influencing the family enterprises which choose governance model. It will analyse these factors on the impact of the family business choosing governance process, and then talk about the different effects on the development of ningbo small and medium-sized family governance mode, and finally judge the future trend of Ningbo family business governance mode and its rules of development. Hope through the analysis of these factors, it will help family enterprises to change the current development model based on the changes of internal and external factors,and select the modern enterprise management model suitable for enterprise development.Firstly, the paper is planned to define the governance model of the small and medium-sized family firms and the family business, and with the principal- agent theory, enterprise life cycle theory, contingency management theory as the theoretical support.Secondly, it will analyze the present development situation and existing problems of small and medium-sized family business in Ningbo. In order to reflect thecharacteristics of MBA thesis, the paper is going to selected three representatives from Ningbo Family SMEs, through the multiple case studies method demonstrated the following three conclusions: Firstly, as the change of two rights separation degree, the modern small and medium-sized family enterprises gradually transition from family management to professional management. Secondly, due to the uniqueness of Chinese family enterprises, the traditional family governance model is the only way for the development of the family business. Thirdly, hybrid governance model will be an important selection object of Ningbo’s small and medium-sized family businesses.Lastly, based on the existing problems in the course of Ningbo’s small and medium-sized family businesses and many case studies, this paper will put forward four corresponding countermeasures and suggestions. In addition, this thesis hopes that through this research, it can explore the practical path of continuing operations and continuous development for Ningbo’s small and medium-sized family enterprises in the current economic environment. We also hope that this research would provide Zhejiang province and the country’s small and medium-sized family business with some useful reference selections.