The first wave of Chinese entrepreneurs are now in their 70s and 80s and it’s time to hand over the family business to their children. But in many cases it may not happen. With greater opportunities and a more international worldview, the younger generation has their own plans. Will this lead China to a business succession crisis?
Many family businesses don’t last beyond the third generation. As someone wisely put it: “Of shirt sleeves to shirt sleeves in three generations”, or wealth gained in one generation will be lost by the third. Yet the Pitcairn family business stands out in sharp contrast to this morose trend. The business has been going strong for more than 100 years and spans five generations and 650 family members. How has the Pitcairn family managed to keep business and ownership separate? How do they keep the family happy and the business well run? Pitcairn Company Chairman Dirk Junge shares some valuable lessons from the Pitcairn experience.
Family business succession planning is always tricky. In China it is also fraught with cultural complexities.
Succession planning in family business is often the cause of much stress. Are there ways of making the transition smooth while mitigating the risks involved?