Study On Evolvement Of Governance Mode And Its Related Factors Of Family Business

Family business is a common style for the enterprise organization. About 80% of the enterprises in the world operate as a family business, especially in our country. After the reform and open-up, family business is the main style for our non-public ownership economy. Going through the literature about enterprise management, most of them are about modern company and there was few special for family business. In fact, family business is really tough when they are growing up, especially in an imperfect economic system. So family business in our country is marked with"failure within three genetations". While, family business contributes about 50% to 60% to our GDP. The stability of family business depends on its internal governance mode. So it makes sense to find the factors of the evolvement of governance mode for family business.This essay is aimed at the factors which impact the evolvement of governance mode for family business per the evolvement path. And this essay also proved the actual impact played by each factor through an empirical way. At last, this essay will draw an conclusion that the main factor which impacts the evolvement of governance mode for family business is the trust on the manager by enterpreneurs. In order to improve their governance mode, entrepreneurs must expand their trust.