Family businesses in China reported a higher and better business sentiment compared to their counterparts around the globe, a latest PwC study shows.
The bi-annual survey covers 2,953 family businesses from 53 countries and regions including 52 from China's mainland and 56 in Hong Kong.
As many as 75 percent of family businesses on China's mainland and 55 percent from Hong Kong have seen sales growth over the past 12 months compared to the global average of 69 percent, according to PwC’s Global Family Business Survey.
The report also shows that 21 percent of mainland family businesses have a succession plan in place, down from 35 percent in the previous survey in 2016, which is also lower than the global average of 49 percent.
"It's important for family businesses to involve the next generation in the business not only to ensure succession but also as a means to tackle digital disruption," said Rebecca Wang, PwC China Central Private Client Services Leading Partner.
As many as 48 percent of mainland family business owners intend to sell their goods or services in new markets in the next two years, compared to the global average of 38 percent.
Among China's mainland family business owners, 77 percent stated that the need to innovate is a key challenge. Economic environment and the lack of professionalization of the business are also listed as their concerns.
China’s government has been adding further support to the development of private businesses, with a series of policies to help solve current challenges that private businesses are facing, including easing companies’ tax burdens, removing obstacles to borrowing money and building a fairer environment for competition.