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New generation modernizes family businesses

By Li Lei | China Daily | Updated: 2018-07-13 08:03
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A worker makes soles on a production line at a shoe factory in Jinjiang. Photo Provided To China Daily

As part of the program, the young entrepreneurs replay major business decisions they have made and allow their peers to assess their performance using the management skills they have learned during the class.

"The experience has helped broaden my horizons," Hong said.

Through a different program she met Yang Shaoming, a materials specialist who studies spiral carbon fiber, a material that is highly durable and corrosion resistant.

"I am discussing with Yang how to apply his technology to upgrade our products," she said.

Conflicts

Hong Xiaoqing, also a Jinjiang native, is general manager of Shanghai Jiuzhou Chemicals Co, which her parents started in 2002. The 36-year-old is in charge of the company's overall strategy, while her parents are mainly involved in the production process.

She said that compared with their parents' generation, younger entrepreneurs are more willing to invest in talent and new technologies, which inevitably leads to conflict.

"My parents were initially opposed when I decided to provide paid training for the employees or purchase more advanced equipment. They believe only government agencies have the money available to do that," she added.

"I believe that capable employees mean my companies will run just as efficiently when I am away as when I am there. I hope the company will live on, even though my children are unlikely to become involved."

She said that when an investment pays off, her parents praise her approach, but she always takes the blame in the event an attempt to innovate fails.

"In the case of urgent decisions I stick to my own methods and tell them (her parents) to follow my rules now that I am in charge," she said.

Li Zixing, 29, is managing director of Fujian Dry-Port Group, the brainchild of his father Li Jinyi.

The older Li started work at age 15 driving tractors and transporting goods before founding Fujian Dry-Port, which is now worth billions. He is gradually handing control to his son and daughter. Li Zixing said the younger generation of entrepreneurs has the edge on their parents because they are closer to the market and consumers. In addition, the superior education they have received helps them to make decisions for the long-term good.

"The older generation received little education, and therefore they invested heavily in their children's studies. Many younger entrepreneurs have experience of studying overseas and good command of foreign languages. They see how their foreign counterparts dress and live, and so they often design their products with the global market in mind," he said.

On the downside, he noted that younger entrepreneurs are inexperienced and not as adept as their parents in taking advantage of government policies.

"Besides, first-generation entrepreneurs like my father are really hardworking and always persevere - these are the characteristics the younger generation lacks," he said.

Hong Yihan, from Jinjiang Fengxing Garment, said she has inherited her parents' business acumen, and she hopes to pass that shrewdness and her own business methods down to her children.

"A family's heritage should rise like a spiral, and every generation should outperform its predecessor," she said.

 

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