Five challenges that could derail a succession plan
Many family businesses in China are still controlled by their original founders, and yet research shows that only 22% have succession plans in place. To ensure longevity, there are five challenges that they should master.
Image: Peshkova, Shutterstock
Family-run businesses represent the future building blocks of China’s economy. According to research, over the next few years China can expect to see six million family businesses contribute to its economic growth. Since private enterprise is relatively new in China, many family businesses are still controlled by their original founders who may soon pass their firms on to the next generation.
Notwithstanding the rapid changes taking place at the very core of Chinese family businesses, founders share five common challenges when it comes to succession.
By reflecting on the simple principles below, owner-managers can advance the su
Like this article? Sign up to our newsletter to get more articles like this delivered straight to your inbox. For thoughtful journalism, expert insights on corporate governance & an extensive library of reports, guides and tools to help boards & directors navigate the complexities of their roles. Subscribe to Board Agenda Subscribe Here
Related Stories
-
No more business as usual: Professor Colin Mayer, Saïd Business School
The British Academy fellow on how business purpose has moved from the slipstream to the mainstream—and how firms with defined values are best placed to survive the current pandemic.
-
Is human rights risk monitoring a weak link in your supply chain?
Current risk monitoring systems may not protect workers or provide an accurate assessment of risks. Here are the questions companies should ask themselves.
-
BlackRock backs global sustainability reporting standards
The fund manager says investors and corporates need common and comparable data, amid IFRS consultation on global sustainability reporting.
