As per biannual 2016 Family Business Survey conducted by Pricewaterhouse Coopers, the economic climate is hurting Chinese family businesses, with 75 per cent of Hong Kong businesses citing market conditions as their biggest challenge for the next 12 months. As a result, Chinese and Hong Kong family businesses are now more cautious, with 65 per cent of businesses aiming to grow steadily rather than aggressively this year, up on 2014’s 41 per cent who were aiming for steady growth.
Only 73 per cent of Chinese family businesses recorded sales growth in 2016, still higher than the global average of 64 per cent, but down from 84 per cent in the most recent study in 2014. The challenging economic environment has prompted Chinese businesses to explore the use of technology, which explained why 67 per cent of them recognised the importance of digital technology.
PwC interviewed 2,802 senior executives from family businesses across 50 countries between May and August. The survey is conducted every two years and is this year’s is the eighth of its kind. One hundred family business senior executives in Hong Kong and China were interviewed for the study.