Blog Introduction: If there’s one thing that the Chinese know how to do, it’s run a successful family business. In China, family-owned businesses account for more than 80% of all businesses, and those businesses generate around 60% of the country’s GDP. So, what is it that makes Chinese family businesses so successful?
There are a few key factors that contribute to the success of Chinese family businesses. First and foremost is the emphasis on values. In China, filial piety—respect for one’s elders and ancestors—is highly valued. This respect is evident in the way that decision-making is structured in Chinese family businesses. elder family members are typically given deference in decisions, with younger members deferring to their elders’ wisdom and experience. This hierarchy ensures that everyone has a voice in decision-making, but that final decisions are made by those with the most experience.
Another key factor in the success of Chinese family businesses is the focus on long-term planning. While Western businesses often focus on quarterly results, Chinese businesses take a much longer view. They’re more likely to invest in projects with a longer timeline, as they know that these investments will pay off down the road. This focus on long-term planning has served Chinese businesses well during times of economic upheaval, as they’ve been able to weather storms that have derailed their Western counterparts.
Finally, Chinese family businesses tend to be very adept at spotting opportunities and seizing them. In China’s rapidly changing economy, opportunities can appear and disappear quickly. Those who are able to spot these opportunities and take advantage of them are usually the ones who come out ahead. Chinese family businesses have an edge in this area thanks to their strong networks. Because families are often large and spread out across the country, they have their fingers on the pulse of what’s happening in different parts of the country and can quickly move to take advantage of new opportunities as they arise.
Conclusion:
Chinese family businesses are some of the most successful in the world, thanks to their strong values, focus on long-term planning, and ability to spot new opportunities quickly. If you’re looking to start or grow a family business, there’s a lot you can learn from your Chinese counterparts.
