Most businesses in Asia is a family-owned businesses. In fact, this kind of system is all around the world. For a family business to be successful and have a great foundation, it should be governed by these three factors such as ownership system, family system and management system. Although family owned system is all around the world, there is quite a difference from that of the west to east., north to the south. Ownership system in an Asian family business is oftentimes held by the first generation to second generation to third generation ownership. It is a seldom case to see a family business type that has gone into the fourth generation. The first generation firmly believe in the importance of keeping the share ownership united in the family thus giving them the thought not see the possibility that some of the members in the family would want to leave and get rid of their shares sell in the future.
Another characteristic of a family owned businesses in Asia is a publicly listed companies which are almost family controlled. Concerning management system in an Asian family owned business, oftentimes, it is hard to get the family out of management. Also, if the founder is still alive, usually, he continues his role as long as he is capable. A lot of times, it is hierarchical and patriarchal accordingly. Family is more important than the individual. So sometimes, they are more comfortable to employ members in the family than outsiders. In some cases, there is a communication gap between generations that is why it makes difficult for the younger generation to be able to propose about some transitions and innovations for the success of the business with the older generation.