Thinking About The Family Business

As the most popular enterprise organization, family enterprise has the most important station in the global economical world. Whatever, in Europe and North America or in developing countries, family enterprises are growing and developing, which affect counties economy significantly. Especially in China, with imbalanced economy development and high pressure of employment, it has most important current signification to develop private enterprises, family enterprises performing a lead, for resolving pressure of employment and increasing country material benefits.Family enterprise has its advantages in existence. This article analyze the advantages of family enterprise including credible relationship, cost advantages, flexible management strategy and so on, based on the theory of big stockholder and company management, equity capital structure and enterprise performance, constituent deputy, life cycle of enterprise, modern company financing. As the mean time, family enterprise has many problems in administration structure, management model, company development and so on, which become its obstacle in developing. This article analyze these disadvantages in simplex property right structure, family management model shortcoming, organization structure limitation, financing obstacle, and enterprise culture scarcity.Based on the analysis above, this article has a suggestion of developing the family enterprise management model, including three circles management model analysis. Based on which, we can design a system harmonizing proposal, each circle establishes its structure and makes plan to harmonize. If this kind of arrangement can be supported by enterprise, family and institution criterion, it will ensure the each system of family enterprise taking good advantages to accelerate adopting advanced management technologies and specialization management for continuable development. In the same time, this article points out the estimation and trend of the family enterprise management model, introducing the basic management principle of family enterprise presented by management master Drucker, discussing about how to decrease the negative influence of family management model, establishing modern enterprise management model, innovation of human recourse management of family enterprise.At last, this article gives suggestions from two aspects, family enterprise internal development including training successor and specialization management, coming into the market and going public, country policy supporting including optimize financing channels.