Restriction Of Family-management On Chinese Family-owned Enterprises Development

Currently, there are a lot of private enterprises, owned and running by family members. Although, private enterprises are playing more and more important roles in social economic development, and their production value proportion is improving drastically year by year. On the other hand, in this decade, many giant private enterprises, which were prosperous in the past, are facing severe crisis in their expansion and business transition. Whereas, those who is in healthy development rarely. And, a large number of small and medium enterprises are lurching in their development. Therefore, more and more managers are realizing that family management model is restraining the expansion and development of private enterprises.According to the general development process of family-owned business abroad or domestically, this paper expatiate the definition and evolvement of family-owned business and family-management model, analyze the features of family-management model in family enterprises, and discuss the function of family-management in the various phase of family enterprises. In accordance with dealing cost theory, this paper analyzes the factors which influences the interior dealing cost changes in the family enterprises, and discuss the positive or negative influence of interior dealing cost declining by family-management in the various phase of family enterprises development.Through the above analysis, this paper try to define various factors and the methods to analyze these factors, which influence the interior dealing cost by family-management, by the way of enterprise diagnostics. Through analysis on the management index and investigation result of these factors in the family enterprise management, defining the changing tendency of interior dealing cost of the current enterprise management, in order to estimate whether promote or not to the enterprise development by family management in a specific phase.After a specific analysis on the various confines by family-management, this paper give some suggestions on the correct realization of the functions of enterprise management in the different phase of family enterprise development and how to avoid the negative functions of family management.This paper tries to be on the basis of management theory, to provide some analysis ideas and methods, in the case of management consultant to a specific family enterprise. It is also expected to be a key to define the sticking points and release crisis when private enterprises meeting with management crisis, especially for family enterprises. At the same time, it is expected to be beneficial for the enterprise managers taking precautions, releasing crisis at the phase of germination, diminishing loss to the best, and creating a continuous healthy development interior management environment for private enterprises, especially for family enterprises.