OpinionAs China ages, concern grows over succession at family-run firms
On mainland, with its one-child policy, concern grows that offspring of founding business owners have little desire to take over the reins
Yesterday was the Double Ninth Festival, a traditional Chinese calendar event celebrated in Hong Kong, the mainland and elsewhere in Asia where family members accompany their elders to climb hills or visit the graves of ancestors.
As the festival is also designated as the day of seniors on the mainland, it has become an occasion in recent years to highlight the enormous challenges and difficulties ahead for the country in taking care of the swelling ranks of the elderly.
The mainland is facing the developed world problem of an ageing population and low growth rate without the developed- world prosperity to ensure people maintain a decent standard of living after they retire. In short, mainlanders are getting old before they are becoming rich.
This problem has taken on even more urgency in the mainland's business community, where the founding generation is getting older but having great difficulty persuading their children to carry on their legacy and keep their business running.
The private sector already contributes about 60 per cent of the mainland's gross domestic product and that share is expected to grow as the economy powers ahead.
While putting in place a clear and effective succession plan is a universal headache for family-run businesses, it is fraught with even bigger headaches for private businessmen on the mainland.
Thanks to the one-child policy, many businessmen have just one heir, who often is uninterested in the family businesses.