Analysis of the Management System Innovation in Small and Medium Sized Family Enterprises of China

Abstract

The family enterprise is one of the oldest forms of enterprise organization in the development of human history. In a way, the development of modern market economy equates the history of the evolution and collaborative of family enterprises. The growth of the family enterprises has now become a unique economic landscape in such a public ownership society in China. China is transitioning from a planned economy to a market economy, and the biggest change is actually the emergence of private enterprises groups. It’s by arriving less much, by arrive infirmly strength has made them one of the most dynamic components in Chinese economy. They not only active in both the urban and rural markets, meet the needs of people’s material and cultural life, ease the employment pressure, but also lay the important foundation of China’s market-oriented reform and participation in international market competition. The general development of family enterprise and its great contribution to China’s economy show that family enterprise as an ancient business system is still active and alive in the modern market economy. Nonetheless, it is not a perfect form of business organization compared with other organizational forms. Family enterprises, especially small and medium-sized family enterprises have also encountered some bottleneck and challenge in the development process, and the only way to get rid of the dilemma is the innovation of family enterprise management system. This paper at first expatiates on the concept of family enterprises, and then based on the study of its characteristics analyzes the present situation of Chinese family enterprise management system. Finally, this paper will find out the existing problems and reasons in the innovation of management system for small and medium-sized family enterprises, in order to put forward effective countermeasures.