Research On Internal Control System Of Family Enterprises In China

Since the end of last century, China’s private economy has got strong support from thestate and develops rapidly. At the same time, as a main force of the private economy,family businesses account for half of the national economy in our country, which play animportant role in the aspects of improving the level of residents’ life and solving theproblem of employment. Unique internal management relations in family businessenterprises is different from other enterprise’s characteristic, consequently, it is the rootcause of making many appear loopholes in management. Many hidden dangers are decidedby the congenital defects of family businesses. While a set of comprehensive internalcontrol system can effectively eliminate the hidden troubles. But existing researchesmainly focus on the problem of how to manage the enterprise and improve the efficiencyof management, which is short of a scientific and complete internal control system toregulate the internal control of family enterprises. Due to the unique management modelduring family businesses, in my opinion, focusing on how to improve the managementefficiency of enterprises couldn’t fundamentally improve the enterprise’s businessperformance, only taking research on the specific application in practice into account onthe basis of studying enterprise management efficiency can radically improve the corecompetencies of the family businesses.In this paper, by analyzing the case of Huiyuan juice from Huiyuan’s developmentcourse and existing problems, combined with the internal control of family enterprises inChina, it explores the construction of the new road to consummate the internal controlsystem of China’s family enterprise.