PwC’s Global NextGen Survey 2019

Currently 29% of NextGens in China are in managerial positions (Global: 39%) and 24% are minority shareholders (Global: 28%). Only 15% are executive directors today (Global: 26%) and by 2025 this proportion will increase to 25% (Global: 41%). Another 15% are majority shareholders today (Global: 14%) and 21% expect to be in this position by 2025 (Global: 29%).

While NextGens in China expect to advance professionally over the next five years, 33% still feel they need to prove themselves before they can put forward ideas for change (Global: 21%).

According to the survey, the top three drivers of change include market competition (63%; Global: 70%), changing customer needs (50%; Global: 67%) and changing technology (48%; Global: 61%).

Against this backdrop, the key business priorities that NextGens in China believe their family businesses should be focussing on largely revolve around upskilling staff (91%; Global: 89%), professionalising and modernising management practices (90%; Global: 90%) and product and service diversification (85%; Global: 84%). Having a business strategy that is fit for the digital age also ranks high in the list of key business priorities (83%; Global: 90%).

According to our 2019 survey findings, the barriers that prevent NextGens from having the impact they would like to have on the business today, include their level of experience within the family business and their level of expertise as highlighted by 73% (Global: 59%) and 65% (Global: 64%) of NextGens in China respectively. The complex organisational structure within the family business was also a barrier for 63% of NextGens (Global: 44%).