Accompanied by these innate advanta

Accompanied by these innate advantages, the particularity of family business also leads to many internal defects. These internal defects are determined by the particularity of the family business. When the family business needs to be bigger and stronger, these defects will become a barrier to the development of the enterprise and hinder the sustainable development of the enterprise. Below we analyze the fundamental internal defects of family business. Enterprise development has a process from small to large. In the early stage of starting up a family enterprise, the scale of the enterprise is small, and its core members are basically family members connected by blood or kinship. As the core, the entrepreneur has natural parental authority, which can ensure the smooth operation of the family enterprise by relying on the family management of parental authority, or even "having a board meeting while having dinner".
On the one hand, the rapid expansion of enterprise scale leads to a substantial increase in the demand for human capital, while the supply speed of family members is generally much lower than the speed of human capital demand under the influence of the natural growth rate of population. On the other hand, due to the expansion of enterprise scale, management of complications, leads to increased demand for senior human capital, and for the members of the family groups, advanced elements of human capital owners should be talented person growth probability, the influence of such factors as the members of the family within this small group, this kind of talent to produce probability is extremely low, so from the qualitative point of view, the family members of the group is difficult to guarantee the supply of human capital. From the above analysis, it can be seen that the development of family enterprises will inevitably encounter a talent bottleneck