Innovation and Creativity Defines Success for Family-owned Companies

When investigating the displayed data, China has over 750 wan private businesses, 95% of which are family-owned. On the entire earth, not even 30% of family-owned businesses have 2 generations working successfully together. On many levels, family businesses are confronted with many challenges. Most family-owned businesses are led by the business-starter of the 1st generation. When the business-starter hands over the reins to the 2nd or 3rd generation, to a large degree the smooth transfer of power determines whether the family business will continue to be successful.

Creating new ideas is a necessary skill for entrepreneurs. The successor must be full of vitality, and be a creative thinker, so fostering the successor with new ideas is very important. The business-starter must begin the fostering early on, as well as begin drafting plans for new ideas, so that this can turn into a system. Cixinggufen (a company) director Sun Pinfan is the iconic successful 2nd generation farmer businessman. He says that businesses rely on coming up with new ideas, this is the direction that society is heading in.

Sun Pinfan also says (something), even more in line with the customer’s demands.

If something new comes out in another country and customers want some device/efficiency, the company not only needs to understand that but also work hard, in order to make it a reality. For Sun Pinfan, as far as focus goes, if you don’t understand the customer’s needs, you can’t make anything new. The company currently comes out with 2 or 3 new models every year.

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As far as innovation goes, Sun Pinfan emphasizes that you can’t copy what other people have, you have to turn creativity into reality ourselves – this is what drives expansion. Entrepreneurship, creativity, innovation, Chinese business-farmer families both generations show experienced people. The only way to pass on and inherit the family business: when the two generations compete, the innovative person will win.