China is facing the developed world' s problems of an ageing population and low birth rate. These problems have taken on even more urgency in the business community. The founding generation is getting older but having great difficulty persuading their children to carry on their legacy and keep their business running. Putting in place a clear and effective succession plan is a headache for family-run businesses. While there are many reasons to explain such reluctance, the deterioration in the business environment has been proven to be one of the main factors.