2.3  The relationship of the family remembers 15

3  The Evolution and Succession of Family Business 17

3.1  The Evolution of Family Business 17

3.2  The Succession of the Family Leadership 18

4 The Development of Family Enterprises in system and life circle 21

4.1  The External System Environment Change 21

4.2  The development of enterprise  in the perspective of  life cycle 23

5  Conclusion 26

Acknowledgments 27

References 28 

1  Introduction

1.1  Purpose and significance of topic selection

Family-run company is adopted widely in current China's private enterprise organization form. It has an important influence on the development of China's private economy. In China, family enterprises will exist for a long time, and always be an important driving force of national economic development. It has a bright development prospect in the fierce market competition. China passed amendments to the constitution in 2004. The private property protection was written into the constitution. It became a milestone in the history of the development of private economy in China. As the main component of private enterprise, family business has a self-evident social effect.

Family-owned enterprises in China has rapidly developed in recent 20 years, family-owned company actually has become the main mode in new enterprises. Governance of family enterprises in China is basically the same with those in South Korea and Southeast Asia. Due to the short development time, a smaller scale, the Chinese family business is still in the early stage of the family business as a whole. Enterprise property rights is more closed, family capital ownership is very high. Compared with the general enterprise, family-run enterprises has some special efficiency in the aspect of corporate governance, guarantying competition ability of family-owned enterprise to some extent. These special efficiency is mainly manifested in the following aspects: first, the enterprise's cohesive force is strong. Family-owned enterprises has the characteristics of the unity of family and enterprise, making the members of the family enterprise assets as family property, the enterprise business as part of a family business, enterprise has formed a strong cohesion. Third, it manages a high degree of stability. Due to the members of the family control of the enterprise ownership and management right, the family-run enterprises in the management and control can maintain the stability highly like family. Fourth, the decision can be quick. Family businesses can command authoritarian direction of family enterprises, and make decisions to matters of family-owned enterprises, which to some extent, shorten the decision-making time, improving the efficiency.

Currently, our country is in the period of economic system transformation and market economy system constantly improvement. Family business is in small scale, geographical space is limited, Members of the family go into operation by themselves, small and medium enterprises have financing difficulties, legal system is imperfect, the securities market development history is short, these economic environment cause the family business growth environment difficult to a certain extent.

Socialization of family enterprises is an inevitable stage for a long time. Currently, most of the our country private enterprise are family businesses, but because of its short development history, overall small scale, relatively backward technology and its own specific conditions, its existence has a lot of confusion, its development has a lot of "trap". They all need to be discussed, answered and solved theoretically. So the study on family business, especially the ability of sustainable development, has a special practical significance.