Towards a Structural Model of a Small Family Business in Taiwan

Abstract

This paper presents a structural model of a small family business in Taiwan. It argues that a typical small business in Taiwan consists of three major components: entrepreneur (laoban), boss's wife (laoban liang) and core team (bandi). Underlying small business dynamics in Taiwan is the Chinese family style of management which enhances competitiveness and flexibility in global markets. Small entrepreneurs in Taiwan are always alert to profit opportunities and surf on the waves of rising markets. With short-term planning, they act as imitators as well as original equipment manufacturers in international subcontracting. The boss's wife is a multi-functional worker. She moves between the family (private domain) and the factory (public domain) with great flexibility. Combining the roles of housewife and deputy head, the boss's wife contributes significantly to the dynamics of small businesses in Taiwan. Finally, the entrepreneur cultivates a core production team (bandi) to enable the small enterprise to compete in world markets with a high degree of organizational capability and efficiency.