The Role of Family Businesses in China's Economy

Family businesses are integral to China's private economy, contributing approximately 60% of the country's GDP. As China has undergone over 40 years of reform and opening up, many first-generation entrepreneurs have successfully built substantial empires. However, the next generation often lacks the same entrepreneurial spirit and hands-on experience that their predecessors had, which poses a challenge for continued success. Moreover, studies reveal that nearly 60% of heirs to these family businesses express uncertainty or disinterest in taking over roles, raising questions about the sustainability of these enterprises.