The Power Transition Of Small And Medium-sized Family Business

After over 20 years development, the family businesses are increasingly important in our country's economic development. Massive facts indicate that the power transition has become a "crucial point" in the development of small and medium-sized family businesses. How to realize the steady power transition and the sustainable and healthy development is the urgent unsolved question for the small and medium-sized family businesses.According to the domestic and foreign scholars' viewpoint, the author believes the family business refers to the enterprise that the family not only has complete or partial property rights, but also takes charge of the management rights, as well as can legally transmit the property rights and management rights to the descendant. Our country family businesses are most small and medium-sized enterprises according to present Small and medium-sized enterprise Standard Temporary provisions. The power transition refers to the incumbent leader transmits the property rights and management rights to the successor. Its essence is enterprise innovation.At present, the features of the power transition in small and medium -sized family business are internal, effective and indefinite. It is mainly conducted among family member, including equal division of property rights among all children and transition of management rights from former generation to their descendant. The major barriers against power transition include the deficiency of power transition plan, the conflict between the family candidates, the conflict between successor and the whole staff, and the conflict between different enterprise cultures etc.Based on the case analysis to the Wang An Computer and the Yellow River Group, the author summarizes the lessons from the defeat of power transition in family businesses: parochial concept of the leaders, unshaped professional manager market, and unperfected criteria of talent choosing.According to the research on Japanese, American and German family businesses, the author concludes the typical experience of the power transition in the overseas family businesses. In Japan, the system of succession by the eldest son accumulates the property and reduces the cost and the conflict. In Germany, by transiting management rights to...