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Family-Owned Businesses

Student’s Name

Professor’s Name

Course Name

Date
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Family-Owned Businesses

Introduction

Family-owned businesses (FOBs) are central to the economy of China, providing a large

volume of job prospects within the economy of China. According to Cho et al. (2020), the

majority of the family-possessed businesses across china were created in the last years of the

economic reformation in the ‘70s and ‘80s. However, currently, as the forefathers of these

businesses approach stepping down, the process of leadership conversion is increasingly

becoming a pressuring concern. The founders of the family-owned companies try to maintain

their legacy and enable sustained family control through intergenerational successes, for

instance, handing over leadership to their children. As such, among the many factors facing

succession in family businesses, the gender-specific challenges experienced by women trying to

achieve positions of leadership come on top. As the women entrepreneurs across china and the

entire globe increase gradually, the women with the desire to be at the apex of leadership in

family-owned businesses experience significant structural and social challenges within the

Chinese male-dominated business and leadership culture. According to statistics, approximately

a third of the family-owned industries often subsist into the successive generation, with about

12% of the business remaining sustainable into the next generation and about 3% operating to

the 4th generation (Harris & Ozdemir, 2020). Therefore, the central problem facing family-owned

businesses is the incapability of ensuring competent cross-generational family leadership via

success management and ownership transfer to the next competent family generation. This has

been a significant concern both nationally and globally for public affairs and policymakers

(Magnanelli et al., 2020). This research proposal investigates the significance and the influence

of the involvement of female leaders and managers on the corporate boards and leadership of
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family-owned businesses. The proposal will add to the existing literature about the significance

of gender diversity in family-owned businesses and, therefore, the impact on the performance of

the business.
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References

Cho, Y., Li, J., Chaudhuri, S., Sun, J. Y., Wang, L., & Ke, J. (2020). Second-Generation Women

Entrepreneurs in Chinese Family-Owned Businesses: Motivations, Challenges, and

Opportunities. Advances in Developing Human Resources, 22(2), 124

Harris, P., & Ozdemir, O. (2020). Turkish delight a public affairs study on family business: The

influence of owners in the entrepreneurship orientation of family‐owned businesses.

Journal of Public Affairs (14723891), 20(1), 1–11. https://doi-

org.gbcprx01.georgebrown.ca/10.1002/pa.2082

Magnanelli, B. S., Nasta, L., & Raoli, E. (2020). Do female directors on corporate boards make a

difference in family-owned businesses? Journal of International Accounting

Research, 19(1), 85-102.