Research On The Management Pattern For The Chinese Family Business

It goes without saying that family business is an important sustainable force in China's society and economy. The development of family business will have profound influence on China's economy. Today, the research on family business is increasing greatly.Firstly, this article gives several basic definitions, and it elaborates the family business system and its developing path briefly. Secondly, it addresses that the conflict inside the family business focuses on the profit distribution and the inheritance. And it points out that the culture background has influence on the family business development, too. Thirdly, it concludes a general developing pattern for family business through a comparative analysis among twenty famous family businesses. Finally, according to the current situation in China, the author gives some suggestions on the management pattern for Chinese family business.Family business follows a general developing rule, which changes from a small-sized business owned by a family to a large public company. Through a comparative analysis among twenty worldwide famous family businesses from many aspects, it finds out that all of the founders have vivid entrepreneurship, and the companies have stable and solid governing structure during the fast growing period. Besides, they can take effective measures to solve the conflict and contradiction between the family members. And the most important, these family businesses are able to realize a qualitative change during the decline period and find a new revenueincrease point. On the base of this analysis, the general developing pattern for family business is concluded.When China is in the shortage economy, the family business occupied half of the domestic market owing to its small size and easy-to-change. However, since the productivity has been increasing gradually these years, the market has changed from seller-direction to the buyer-direction. The living situation is tougher and tougher for the family business. China joined the WTO in the late 2001. The opening up in various industries will bring up a big shock to the family business. Many foreign companies who have large capital and advanced technology and management make a big difference with the domestic family business that have small capital and outdated technology and management.The incomplete social trusting system is one of the bottlenecks for family business' growing up. The phenomenon of cheating acquaintance is a deformity expression that reveals the great damage of Chinese traditional trusting system under the shock of the opening up. However, it means an opportunity for traditional trusting system to change from the personal-based to the non-personal-based. Besides, the vague ownership structure is a typical feature for the Chinese family business during the starting period.The clear ownership structure is the fundamental premise for Chinese family business to grow up healthily. The open human resources structure is the support for the family business to become stronger. And the perfect successor plan is the basic condition for the family business to sustain. The build-up of social trusting system and maturity of professional managers market will have positive effects to the family business development.