Things are looking good for family-owned businesses in China, according to a recent survey.
PricewaterhouseCoopers issued a report recently that examined the performances of family companies around the globe. The results were generated from interviews with the top executives of 2,848 family-owned businesses in over 40 countries, each with annual sales between $5 million and $1 billion. The study found that China’s family businesses are some of the most successful in the world, and are expected to experience considerable growth over the next five years.
“In general, family businesses in China are in reasonably good shape in terms of growth,” Jean Sun, an affiliate of PwC, said in an interview with China Daily.
Eighty-four percent of the more than 80 family companies from China studied in the survey reported that their businesses had grown in the past financial year; the global figure, by contrast, sits at 65 percent. Only 15 percent of family businesses across the globe are “aiming for quick and aggressive growth” over the next five years; in China, that figure is 53 percent.
Sun noted that business growth will be “driven by the factors of being more innovative, running business more professionally and attracting talent.”
Chinese family businesses are also relying more heavily on international customers: 15 percent of their sales are accounted for internationally, a figure expected to rise to 21 percent over the next five years.
If the survey found anything lacking in Chinese family businesses’ performance, it was organization. Though more than 80 percent of companies have board members who are not relatives, only 22 percent have succession plans, and 6 percent “have a robust and documented succession plan in place.”
image credit: flickr/fullbridge program