A Study On The Intergenerational Inheritance Of M Family Enterprises

Since the period of Chinese economic reform in 1978, starting the family owned business was becoming the popular wave in China. In that special period, people who followed the common rules would only leads to the ordinary, on the contrary, people who may exploit the current policy and adapt the revolution can gain their success. During the three decades of Chinese economic reform, many family business is becoming integral parts of the Chinese economic and their contribution is remarkable. However, there are many problem appearing in the development process of these family business, such as unhealthy management system and relatively low management efficiency, especially the intergenerational transmission is becoming the most imminent problems.In the history of reference today, once the intergenerational transmission of an empire has fell into chaos, the whole country may get in trouble. The principle is also useful for the family business. Recently, as the entrepreneur now is getting old, solving the intergenerational transmission is the foundation of the sustainable development. It is said by Mencius, the wealthy family only can pass three generation, It is seems like a curse of the Chinese family business. Many family business have to face the pressure of the intergenerational transmission. Because of this curse, the entrepreneur have to seriously think about to cultivate the next generation. Only choosing the right successor may promise the family business achieving constant flourish and success.This report will mainly discuss how to solve the intergenerational transmission problem. To be specific, the report will mainly analyze the problems and causes of these problem, use the successful experience and method as a reference and propose the possible solution of the intergenerational transmission. The report will adopt the following stepsFirst of all, after looking up the materials and academic articles and formulating the useful view point, this essay will definite the background, the purpose and the main concepts and theories.In addition, from reality to proceed, this report will utilize the survey to study and understand the practical condition of the intergenerational transmission. Based on this data, the arguments and the viewpoints would be presented.Finally, according to the results of the study, this essay will propose the method of the intergenerational transmission and figure out the process of cultivating and choosing the successor.