Family Business : The Oldest And Most Universal Type Of Business

1255 Words Sep 19th, 2015 6 Pages
Introduction
1.1 Background and Research Objectives
Family business, the oldest and most universal type of business, has the important position in the development of economy. In the all companies in the world, more than 65 percentages of them are family business companies. Furthermore, in top 500 companies of the world, 40% are owned or operated by a family. (1998) At the same time, family enterprises has made significant contributions in their national economy.(Dawson,2012) According to the statistics data which is given by Mandl (2008), the family business which occupies 70%-80% of all enterprises provided about half of the employment in Europe.

Not only developed countries such as Europe and the US, but also developing country such as China, family enterprises played an increasingly important role in national economy. In the late of 1970s, China established the policy of reform and open. After that, Chinese economy model has changed from single public economy to various economics including public economy and non-public economies (individual economy, private economy and foreign investment economy). In the composition of GDP in China, non-public economies have changed from 2% in 1978(Wang, 2002) to over 60% in 2013(Zhou, 2014). Currently in Chinese non-public economy, at least more than 90% enterprises are family business. Chinese family business also experienced the process from small scale to large scale.

With the improvement of production scale, the management of these…

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