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Abstract The two greatest enterprise groups of Rong and Zhang are the representatives for Chinese household and non-household enterprises in modern age. From the rise and fall of the two groups, the household enterprises have more advantages than non-household enterprises, which can be seen in four aspects: The first, profils allotment obey the capital accumulation, the cohesion of enterprises is very strong; The second, investment tendency and the principle of management are more practical rather than idealization; The third, the loopholes of management such as corruption,waste and officialism can be easily controlled, and the innate exhaust is very small; The fourth, the enterprisers often does well in self-orientation, and infuse many energy into enterprises. The reason for being advantageous was the hold-together inside of kin. The kin is a double-faced shield, it also can produce negative influence when system is weakening. Moreover, the conversion of household enterprises to thoroughly private-owned one is also one of the reasons. A supplementary that must be pointed out is, we can't recognize the ar-gumentation of superior Confucianism culture merely according to the advantages of household enterprises.
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Received: 25 June 2003
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