Research on Practical Dilemmas and Paths of Intergenerational Succession in Family Enterprises

Abstract

Family enterprises serve as a vital pillar of China’s private economy. As a great number of first-generation entrepreneurs nationwide step into retirement, countless family firms have arrived at a critical stage for intergenerational transfer of power and assets. Intergenerational succession is not merely the handover of equity and management rights, but a comprehensive transmission of tangible assets, social connections and core corporate culture. Currently, these enterprises are trapped in prominent obstacles including inadequate advance planning, ambiguous property rights, trust deficits between families and professional managers, as well as inflexible succession modes. This paper sorts out such universal dilemmas and proposes operable countermeasures from enterprises, families, government and society to facilitate stable handover and long-term sustainable development of family businesses.