Research On The Key Problem Of Family-owned Business In The Process Of Succession

Family-owned business,which play very important role in social and economical are the immanent organizational form of business all over the world.Transfer of leadership from fathers to sons is very common in family-oened business.For this kind of succession has a deep culture-foundation in our country.The transfer of leadership from fathers to sons of family-owned business will come soon. In this process of succession we will meet some problems:First, there is not an authoritical definition for family-owned business up to now. Every scholar give their own definition, every definition contain different companines. In this paper, we give our definition based on the family culture of our country. We emphasize the possibility of succession.Second, we have wrong recognition for family-owned business. Some scholars look it as an unenlightened company structure; it is the time to transfer this recognition.In this paper we analyse the advantage and disadvantage of family-owned business, combine with the relationship between private-owned company and civil-owned company, thus we solve this problem.Third, if all the family-owned business should consider succession? As one of the three key problems of family-owned business, the results of succession determine the development of family-owned business.But all family-owned business should not consider this problem. As for different companies, we solve this problem use life cycle theory in this paper, thus we solve the problem which bother scholars.As the two participators in the process of succession——sons and fathers. The join of offspring is the precondition for the success of succession. There is more qualitative study than quantitative study in our country. In this paper we begin our quantitative study use SEM method, combine with the factors which influence the join of offspring.The results of our study show the degree of influence of the four factors. Fathers, as the other side of this process, have the virtual influence in this process, because they size the initiative.We do questionnaires take the fathers of family-owned business as our targets. Thus, we analyze the problem of succession from two sides.