Succeeding in the family business can be a hazardous affair

Over the past two centuries, family enterprises have made great contributions to the growth of wealth and creation of job opportunities in many countries, becoming the dominant economic elements of developing and developed economies.

According to the China Private Economy Development Report released by the All-China Federation of Industry & Commerce in 2006, private economy accounted for around 65 percent of China's gross domestic product (GDP) in 2005 and provided 84.1 percent of job opportunities in second and third-tier industries. Furthermore, the tax revenue of private companies has been more than 70 percent of the fiscal revenue of many places where 70 percent of the private economy is made up of family enterprises.

However, it's estimated that only 30 percent of family enterprises will continue successfully in the hands of the second generation and only 14 percent survive into the third generation.