I have always been told that Chinese run businesses cannot last longer than three generations. Is this true? I believe it is because of their enterprise set up, but nowadays most companies are private limit or public companies and that should be fine.
But that is still not the case.
A couple of weeks ago, a friend of my family had to sell off some of his company's assets and it looks like he is going to wrap up his business. Being in the travel industry, the SARS that happened a few years ago affected his business badly and since then it never really recovered.
It is a pity really. He built the business from scratch, past it to his son and after a while, the business suffers. This is not an isolated case, hence the popular belief that Chinese businesses can last for two generations, the most, only.
Why is it that Western companies can last for generations and generations? Last I read about the Hennessy, it's in the hands of the eight generation or so. Is it in the management style?
People who have worked in a Chinese family-run business would know that management skills are always lacking so I guess that if they do not change their style of running the business, they risk losing it altogether.
Perhaps in this respect, we all have to learn from the West.
But that is still not the case.
A couple of weeks ago, a friend of my family had to sell off some of his company's assets and it looks like he is going to wrap up his business. Being in the travel industry, the SARS that happened a few years ago affected his business badly and since then it never really recovered.
It is a pity really. He built the business from scratch, past it to his son and after a while, the business suffers. This is not an isolated case, hence the popular belief that Chinese businesses can last for two generations, the most, only.
Why is it that Western companies can last for generations and generations? Last I read about the Hennessy, it's in the hands of the eight generation or so. Is it in the management style?
People who have worked in a Chinese family-run business would know that management skills are always lacking so I guess that if they do not change their style of running the business, they risk losing it altogether.
Perhaps in this respect, we all have to learn from the West.
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