Survey Shows: 74.6% of “Post-80s” New Generation in Private Enterprises in Zhejiang Have Intention to Take Over
On November 29, the Zhejiang Entrepreneurs Culture Forum was held at the Zhejiang Entrepreneurs Museum. Sun Jingmiao, Director of the Zhejiang Entrepreneurs Research Center, former Vice Governor of the Provincial Government, and former Vice Chairman of the Provincial Political Consultative Conference, pointed out in his speech that a survey conducted by the Zhejiang Entrepreneurs Research Center in the first half of the year showed that 74.6% of the new generation of private enterprise owners (all born after 1980) are willing to take over the family business, which is the highest figure recorded in several surveys conducted over the past two decades.
The Zhejiang Entrepreneurs Culture Forum is one of the special events of the 7th World Zhejiang Entrepreneurs Convention, jointly organized by Zhejiang Gongshang University and Zhejiang Academy of Chinese Culture, and hosted by the Zhejiang Entrepreneurs Museum, Zhejiang Entrepreneurs Research Institute, School of Business Administration (MBA School), and the Academic Committee of the Zhejiang Entrepreneurs Association.
At the forum, Sun Jingmiao mentioned in his keynote speech titled “Intergenerational Transmission of the Zhejiang Entrepreneurs’ Spirit” that the average age of Zhejiang entrepreneurs who founded private enterprises has exceeded 60, with many already in their 70s, and more and more enterprises are entering the phase of intergenerational transmission. In the first half of this year, the Zhejiang Entrepreneurs Research Center conducted a survey on intergenerational transmission among Zhejiang entrepreneurs, polling nearly 500 veteran entrepreneurs across the province. The survey revealed that 60% of those over 60 had not completed the transmission, and 36% of those over 70 had not handed over the reins. “To be honest, these figures are not good. We respect the entrepreneurial and hardworking spirit of the older generation of entrepreneurs, but we need the younger generation to step up,” Sun said. He emphasized that the intergenerational transmission of private enterprises is not only a private matter concerning the rise and fall of the enterprise itself but also a significant issue related to the national economy, people’s livelihood, and social stability. “The older generation of entrepreneurs had a difficult time starting their businesses, but it’s even harder for the new generation to take over successfully.”
Sun Jingmiao expressed relief that among the 559 new-generation private enterprise owners surveyed by the center (all born after 1980), 74.6% are willing to take over, which is the highest figure recorded in several surveys over the past two decades. Many of the new-generation successors said that the most valuable thing their parents left them was not equity or wealth, but qualities such as hard work, innovation, perseverance in their industries, and the courage to seize opportunities in times of crisis. The greater significance lies in inheriting the vision, culture, and spirit of the enterprise.
“Among Zhejiang’s private enterprises, a large number of successful transmission cases have emerged in practice, and they have gained first-hand insights. However, it cannot be denied that some enterprises have fallen into crisis due to improper transmission,” Sun said. He suggested that by summarizing the lessons learned from both successful and failed cases, successful intergenerational transmission should adhere to the transmission of sentiment, emphasize teaching by example, and focus on family culture building; it should be planned early, with a minimum of five years and ideally ten years of grooming for succession; it should manage risks by establishing certain “firewall” mechanisms, where the older generation should actively and boldly transfer power to ensure a healthy enterprise is passed on to the next generation, while also being adept at controlling risks, making orderly decisions, and avoiding impulsive or blind decision-making; it should adhere to team transmission, promoting the “succession of leaders and team replacement” simultaneously, introducing more outstanding talents to participate in enterprise operations and jointly supporting the growth of new-generation entrepreneurs; and it should guide enterprises to improve their modern corporate governance systems, establishing standardized management systems to “manage money, people, and the enterprise,” enabling family enterprises to transition from rule by individuals to rule by law.
