Succession in Family Business

Abstract

Abstract

In the development of the world’s enterprises, family enterprises always have a very important role. And the succession problem is also related with the development of the family business deeply. So the succession problem is always the hot topic among the management scholars. How to deal with succession in family business issues will be directly related to the continuing operations of enterprises. Nowadays, Chinese family businesses enter the peak time of succession. Analysis of the current economic environment and companies’ situation, and making a suitable model for Chinese family business is very useful.

This thesis consists of five parts. The first part will introduce the main objectives of the thesis. The second part tries to introduce and define the family business. The third part will compare between Foreign family business and Chinese family business. The last part will define succession and discuss the succession situation and problem in China, then will give a suitable succession model and my own suggestions.

Own suggestions: Make a succession plan as early as senior can. Build up a team to help developing and training the successor. When senior hands over the business to successor, he or she should let successor go. And sometimes break up the blood succession is also a new way for company’s continuity.