Research On The Succession Of Managers Of Private Enterprises In Wuxi

Over the past 30 years of reform and opening up,China's private enterprise has become the most dynamic part in its domestic economic system.At present,in China there are more than 3 million private entrepreneurs.Most founders of these enterprises who start their business since the reform and opening up period are over 50 years old.Appointing a successor is an urgent thing to these founders.It becomes an unavoidable question for them to consider how to carry on their business and wealth to their next generation.Liu Chang,daughter of Liu Yonghao,took her father's position as co-chairman of“New Hope” enterprise in 2013.This event has drawn a great attention and won the praise of media.However,it has also triggered the media's discussion,and the front pages are full of concerns about private business' s succession.One of the reasons for the media's concerns is that there have been such cases that some well-managed private enterprises go downwards or even break down after taking over by the successors.This situation is quite disappointing.Nowadays,one distinctive character of China's private sector is that the successor is always the founder's son or daughter.Transferring their leadership from father to son is quite common for the main leaders in private enterprises.“What exists is reasonable”.It is hard for us to judge whether this conservative mode is good or not.But it exists everywhere and becomes more and more common.It must have its deep reason.How to find an effective way to settle conflicts among different powers,and successfully transferring leadership to the successor is a great topic in enterprise's and academic circle to both China and developed countries in America and Europe.Wuxi,as a well-developed city in private economy,now has 46400 private enterprises.According to the census population,there is one entrepreneur in 100 people.Few cities have such density of private enterprises in China.Since private enterprises start early in Wuxi,the founders has aged now and the leadership transferring to the next generation has already started.In some private enterprises,sons have already taken theirfathers' position,becoming the helmsmen in the family business.This article focuses on the succession of Wuxi's private enterprises,trying to find the successful experience of succession.In the course of the study,this paper will use various research methods,such as literature research,questionnaire survey and case interview.By referring to the relevant literatures,this article combs the studies on private enterprises' succession,which offers a theoretical basis for later demonstration.In the questionnaire,there are three types of samples: Wuxi private family entrepreneurs,the successors and successor candidates.In the case of Wuxi,large private family enterprises mostly have transferred the leadership to the second or third generation,while to the small and medium-sized enterprises the founders are still in place.So the samples basically meet the research needs.The questionnaire is based on the analysis of the factors that affect sons or daughters join the family business,which is now the most prominent problem in the process of the current private family business.This study uses measurement software SPSS22.0 to analysis the collected data,so as to find the main elements influencing sons or daughters to join the family business.This study intends to interview six to eight successors to their family business.The deep interview in individual case will help to enrich and supply the questionnaire.This study has reached a conclusion that according to the coefficients of the variables normalized absolute value,the influential degree of variables on joining the family business is different,from high to low are family factors,personal factors,market factors,business factors.And this has been further confirmed in the later case interview.At the end,based on the interview and analysis,this study gives advices and suggestions to private enterprises on how to successfully transfer the leadership from father to son by considering the above factors.Firstly,considering the “family factors” and ”business factors”,entrepreneurs should do whatever they can to prepare in advance,selecting and raising the qualified successor early.They should also be prepared to delegate powers to the lower level by designing a guiding route for the successor.They should also boldly use professional manager.Secondly,the successor should keep working on“personal factor” by carrying on duty down-to-earth,to be specifically,paying moreattention to communication with the seniority in the family business.They should also keep learning to standardize the internal management of enterprises.What's more,they also need to blend in the business in order to strengthen team cohesion.