After the family business has developed to a certain scale, if it wants to further develop, occupy the market or even open up overseas markets, it will certainly encounter two insurmountable obstacles: First, the lack of funds, the enterprise has developed to a certain scale, and if it does not absorb foreign capital and open its shareholding structure, its development momentum will certainly fail. Even if new funds can be injected by borrowing from banks, the scale is still limited, because corporate loans must be mortgaged by corporate assets. The second is the non-familyization of enterprise management. Because excellent enterprise management talents are very scarce resources, they cannot be confined to a family forever.

Photo: Professor Ding Xueliang.