Small And Medium-sized Family Businesses In Transition

With 30 years of reform and opening up, China's private enterprises, especially small and medium sized family business has been developed rapidly. Those family businesses have a strong vitality and explosive power, and become one of the main driving forces of China's rapid economic development. Family business in the Pearl River Delta, Yangtze River Delta, established business with miracle, and in some extent, created and led the "Made in China" tide. It is highly expected, that small and medium sized family business, will be the star of the next stage of China's economy growth. With the WTO, and accelerating of global integration, they will involve more in market competition. Facing an increasingly complex situation, how to meet new challenges, new opportunities, will become a major issue for every Chinese family business.In the past 18 years Minglian construction has been continuously grown rapidly with scale of business expends year after year. Into the twenty-first century, Minglian construction has enter a critical period of power transfer from old generation to the new generation, and adjustment of business model. Company urgently needs to transfer corporate power smoothly, maintain a reasonable growth, and establish sustainable management.based on the analysis of the typical cases of domestic and international family business transformation, This article uses the basic theory and tools of modern family business reform, with the premise to keep Minglian construction as a family business, keep strong compatibility in residential construction, fast response to market change, strong management and low cost advantage, processes five aspects from the core concept, ownership structure, competitive strategy, governance structure and human resources strategic transformation. With good planning, step by step transfers family business to enterprise family trust. and to develop appropriate short-term and long-term plans.This article also targets for reduce risk and ensure successful transformation of the company, approach from the system and organization, scheduling, entry points, cultural carriers, incentives and other aspects of the possible safeguard method.This paper consists of six parts:Part I is an introduction, a brief description of the topics, the purpose, significance, research ideas and methods, and possible new ideas and inadequate; second part of the family business literature review on the family business definition, generation and development, the cultural foundation as well as an overview of trends and describes several typical cases of family business transition, summed up their success and failure and the inspiration and thinking it brings, to provide a reference later in; third part analysis the situation and outstanding problems of Minglian Construction of, from its creation to current status. Find and eliminate bottleneck of future development; fourth part mentioned the ideas of transforming Minglian construction. Through the SWOT analysis, summarized the principle of the short-term transforming and long-term road map, explained the idea to transfer family business to modernization managements and the idea of legalization;Fifth section explained in detail about the transition operation, proposed the specific implementation from a different perspective and systemic point of view; 6th provide a safe and sound transaction technical method to ensure its success and provide security to achieve the strategic goals. Meanwhile, it also enhanced the feasibility of its practice and guidance; the last section is summarizes the conclusions.The novelty of this article is that, as a business owner, the author established a systematic idea of transform a traditional construction family business to a company with modernization. Plus, also provide secure implementation for successful transform. These ideas, plans and implementations have their great significance for Minglian Construction stable and long term development.The author also believes that the model of Minglian construction's modernization also paved the road for its peers and a beneficial reference.There is also some shortage of the analysis due to the complexity and non-transparent character of family business, therefore, accurate quantitative analysis may not be achieved, and this may bring some negative effects on further scientific valuable study of the modernization strategy development.