Multiple Intergenerational Conflicts Make Private Textile Enterprises Relay A Particularly Difficult Road.

I just took the seat of the chairman from my father.

Stepping into China

However, the two generation of private enterprises that are likely to dominate the Chinese economy are most puzzled by the fact that multiple "intergenerational conflicts" are making the pition process extremely difficult.

Research by several agencies shows that China

The situation of Zhejiang province with the earliest development of private economy is most representative in China.

According to the Zhejiang businessmen's Research Association, more than 80% of the family businesses in the province are facing the problem of succession.

Mao Lixiang, chairman of FOTILE group, nearly 70 years old, said: "most of the first generation entrepreneurs are in the age of 55 to 65, and their physical and mental status, knowledge structure, ideology and market grasp ability are obviously challenged by more and more challenges."

In Ningbo, where FOTILE group is located, private enterprises account for 90% of the total number of enterprises.

Many business owners are approaching or entering the old age.

But the two generation's performance does not make their parents feel as optimistic as they want.

The chairman of a 66 year old private enterprise in Ningbo is still working in the front line.

"My son has worked very well in a foreign trade company in the field, and his daughter has settled in the United States. Two people are unwilling to take over."

A survey of two generations of private enterprises in a research institute in Beijing showed that less than 20% of respondents were willing to take over and work in family businesses.

Shi Ping, the Federation of industry and Commerce in Shengzhou, Zhejiang, said that the two generation of private enterprises, because their interests were not in their parents' careers and did not want to take over, was the main reason for some private enterprises' "poor succession".

Some two generations want to take over, but because of education, professional and other reasons can not.

The two generation has not yet set a clear position for themselves, and is not ready to take over.

The researchers noted that in the succession process, "father is still chairman of the board, children from the general manager" this mode is more common.

However, the two generation thought that their parents were unwilling to give up their power, and still manipulated the decision power of major matters.

"Under such circumstances, parents tend to decentralization, but often interfere with their daily management decisions, and over time, there will even be the phenomenon of" overhead "general manager.

Chen Ling, director of the Institute of family business at Zhejiang University, said.

It can not be overlooked that many "generation" entrepreneurial teams in Chinese family businesses are made up of relatives, so there are still a lot of family conflicts and conflicts coming together with the "succession" era.

"There are a lot of complicated relationships between them. Many young people will find it very difficult to dispatch relatives, especially elders, after they take over."

Chen Ling said.

"Eccentric" parents, brothers competing for successors, different family members who are jealous or competing.

Analysts believe that the tragedies and comedies of Chinese family businesses may be staged in the next 5 to 10 years.

This is reminiscent of the fact that the Broolyn family business school once pointed out that about 70% of the family businesses could not be passed on to the next generation, and 88% failed to reach the third generation, and only 3% were still operating in the fourth generation and beyond.

In China, the "rich three generation" that people often talk about indirectly reflects the universal reality that family wealth has lost in the intergenerational pmission.

To China's private enterprises, it is gratifying that more and more government departments, research institutes, large enterprises and chambers of commerce are taking the lead in setting up various organizations to help them get through the waiting period.

Mao Lixiang, the former chairman of FOTILE group, founded the "Evergreen School" specifically for private enterprises four years ago. It provides a systematic shift solution for enterprises through teaching, salon and clubs.

Some scholars even suggested that the relevant departments of the state should attach importance to training a team of professional managers so as to solve the problem of continuous development of enterprises unable to complete the shift.

Chen Ling believes that compared with the "Jianghu spirit" of the founding fathers, the two generation of private entrepreneurs showed more modern knowledge color, higher cultural level, broader vision and more receptivity to new things.

"From this point of view, in the face of life and death exams, if China's private enterprises survive the difficult period of handover, they will usher in new opportunities and more opportunities."

Chen Ling said.