The Next Generation: Taking the Reins of Family Businesses

In the city of Ningbo, a new generation of entrepreneurs is making significant contributions by embracing and modernising the traditions of their family businesses. They are not only assuming leadership roles but also incorporating technological advancements and venturing into e-commerce to propel the businesses established by their predecessors into the modern era.

One such entrepreneur is Ye Kaifeng, who initially hesitated to join his family’s papermaking business after completing his studies abroad. Instead, he pursued a career in hog-raising, aiming to forge his own path. However, after careful consideration spanning over a decade, he assumed control of the family business in 2018, infusing innovative ideas into the eco-breeding industry.

The transition from one generation to the next is a paramount concern for numerous private enterprises in Cixi, a city in Zhejiang province. As the founding entrepreneurs approach retirement age, ensuring a seamless succession becomes imperative for the sustained progress and development of these businesses. This issue not only impacts the local community but also carries broader implications for the regional economy.

In Cixi, 95 percent of family businesses primarily opt for transitioning to the next generation. This process is meticulously planned and executed, often spanning several years. According to local authorities, approximately 35 percent of the 418 private enterprises with an output value exceeding 100 million yuan have already undergone succession to the second generation, while nearly 50 percent are in the midst of the transition.

The dedication of these second-generation entrepreneurs extends beyond the mere preservation of their family businesses. Many of them are at the forefront of introducing technological innovations, embracing e-commerce, and integrating innovative strategies to adapt to the evolving business landscape. Their endeavors not only preserve the legacy of their family businesses but also drive them towards modernisation and sustainable growth.

The transition from one generation to the next marks a pivotal phase for any family business. It demands meticulous planning, resilience, and a deep comprehension of the changing market dynamics. As the second-generation entrepreneurs in Ningbo and beyond continue to demonstrate their capabilities, they are not only upholding their family legacies but are also reshaping the future of traditional businesses with their pioneering vision.