Research On The Development Predicament And Countermeasure Of Small And Medium Family Business

Family business is a world-wide kind of enterprise organization form. Since China’s reform and opening-up, many family enterprises not only play a decisive role in the development of the economy and society, but also become important strength of prompting our national economy.At present, most small and medium family companies are in transition to larger enterprises. Prompt development of family business brings greater opportunities and spaces, meanwhile, produces and accumulates many problems too. On one hand, with the great challenge of generation inheritance during transition from familial management to modern business management, whether if the family business can avoid family disputes for peaceful transfer of power is directly related to the survival of enterprise. On the other hand, since the separation of family business always leads to division even downfall of the enterprise, it is a burning question that how to eliminate the above negative impact.A series of problems Shanghai XA Company faced from startup to division and downfall are typical for most small and medium family enterprises during the transition. With the analysis of XA Company and comparing with the domestic and foreign separation cases, the article discusses the reason and mechanism from the perspective of familiar governance and fission creation. Based on study of China’s national conditions and traditional culture, the article explains deeply the predicament and countermeasure of small and medium family business in order to give an active support theoretically to the development, reform and innovations for more powerful competitiveness and vitality.