On The Development And Perfecting Governing Structure Of Nongovernmental Business

Since reform and opening梪p, nongovernmental economy has emerged and flourished. Thanks to the flexible operation mode, nongovernmental business can meet the needs of users and changeable markets, which shows strong adaptability: meanwhile it can cooperate with large enterprises preferably, which shows strong complimentarily. With the outstanding achievements, nongovernmental business constitutes half national economy, thus the exploration on nongovernmental economy is of great importance. Currently family business is the major form of China s nongovernmental businesses. From a world scope point of view, nongovernmental business seems to exist mainly in the form of family. There are advantages and disadvantages for nongovernmental business to implement family operation. The advantages such as strong cohesion, unification of rights and liability, independent management, flexible, high efficient and low cost operation, which are apt to show in the primary stage of operation, have made great contribution to the foundation and initial development of nongovernmental business. However, when developing to a certain level, the nongovernmental business usually lacks rigorous supervision and restriction mechanism, and nonstandard management and being short of excellent talents will lead to unresponsiveness, conservation and hesitation in development. Subjectivity and experientialism in the patriarch?s decision梞aking, the difficulty of selecting successor, employment on grounds of relative favoritism instead of personal ability, and close proprietorship are the four factors limiting the family business. When the family business confronts the third innovation, reform becomes a general trend. But what is the way out? For the time being the theoreticians have been conducting fierce debate on this issue, of whom the theory circles led by Li Yiling, President of Guanghua Administration School of Beijing University, strongly advocate imitating the successful mode of western family business to implement the modernized innovation of two powers?separation, thoroughly giving up the mode of family members?operating 111 / \!~SIER S THEWS business, and establishing actual modern enterprise system. On the other hand, in their opinion, the family operation not only relates to people?s concept and Chinese梠riginated historic culture, but the legal system of the society. This issue deals with the breath of vision and ability of the entrepreneur, and has something to do with China?s having no healthy or wholesome market of managers. In view of the outer environment, it is fairly difficult for China?s nongovernmental business to cast off the family operation. Zhang Weiying, a famous economist said that it was not merely a problem the business can solve by itself, but a social problem. This paper agrees with Zhang Weiying, makes some exploration from the aspects of whether to separate the proprietorship from the management power, whether to perform employment on grounds of relative favoritism or on grounds of personal ability, and how to combine the powers and power separation, and believes that the implementation of modernized management is not always on the premise of the family?s withdrawing the control on the business. This paper also proposes...