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Family Enterprise Research Status and Development Trend

Author: QinZiKai
Tutor: LiuLi
School: Northwestern University
Course: Marxist Theory and Ideological and Political Education
Keywords: Family enterprise The status quo Trend of development Research
CLC: F276.5
Type: Master's thesis
Year: 2009
Downloads: 885
Quote: 4
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Abstract

More than 30 years’ development of reform and opening policy, the vast majority of private enterprises in China have been developing by family management which has obtained the high efficiency and some still continue to create the higher efficiency. According to the survey, the number of private enterprises which use family management holds about 90 percent of the total in China. In these enterprises, 40 percent of managers are families or quasi-family members. They hold all important positions in business such as the decision-making, production, distribution, financial and so on.The traditional management’s feature of the family business is that the managers who are property owners still hold the position of the business managing. The combination of property and management rights is the important factor to maintain the competitiveness. Practical experience shows that this kind of management model which is helpful to create the entrepreneurship but not to promote enterprises’ developments. With the production environment’s developments, management model and the specific management methods of the family business should also be changed. Enterprise management must also comply with the trend of modern society. To expand the living space in the increasingly fierce competitive market, whether most family businesses have the ability to break through family management style , reform themselves into the modern enterprise system with property rights and clear responsibilities clear and sciertific management realizing the desire of "the rich more than three generations", is worth considering for those "parents".Refering to the substantial literature materid of family management and strategic management home and abroad as well as my own practical experience, I think family businesses have their drawbacks, but it is not synonymous for backwardness. Family-running enterprises still have very strong vitality. while, in china, most of our enterprise development strategies researches are directed at state-owned enterprises and there are very few specifically strategic researches about family business. So in this case, exploring the growth path of our family business, analyzing its development of status, making the enterprises development strategy and promoting internal reforms have the important and far-reaching significance. In this paper, through the further discussion of the development status of our family business, I not only analysis the problems in our family business operation and management, employment mechanism, the internal relations and the family business heirship, but also seriously think of the constraint factors of our family enterprise development. Through the comparative analysis of the family system about Chinese and foreign enterprises, learning from the successful experience of domestic and abroad family business management and our predecessors’ researches resulting on the family business, I prospect the development of our family businesses in the future and offer the strategic choices of available reference, drawing for our family businesses success.

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