China launches management training programs for heirs of private business owners, China Daily reported.

In the past 30 years, China's private business sector had boomed. During this time, the country saw a abundance in the rise of wealthy and powerful business leaders.

However, these rich tycoons are now nearing the age of retirement and are looking to their children and relatives to continue the business. Normal custom among Chinese prescribe that the business be passed from generation to generation as a form of legacy or inheritance.

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Fuerdai, or as it is translated as "the second generation of the rich", is rarely a term used as a compliment. The negative connotation of the term stems from the fact that society views the second generation as inheriting an abundance of wealth without working for it.

In an effort to sustain the growth of the business sector, some regions in China have implemented programs to train the second generation in preparation for the time when they would be taking over the inherited business.

In Guangdong, the second generation are encouraged to join in a program where participants will be working in State Owned Enterprises (SOE) to gain business acumen and entrepreneurial skills.

According to Liu Yuanxin, deputy head of the organization department responsible for the program, almost half of the participants in the first group were successors of family-owned corporations.

As children of wealthy parents, the second generation are educated well. Most, if not all have studied overseas. However, most of them lack the experience in practical application to actual business settings.

Liu Baiwei, a participant of the program in Guangdong was a garage owner in Canada. He loved what he was doing but gave it up after his father had requested he take over the company.

"I know some theories about business management, but lack real experience," he said.

In Foshan, a first generation chairman of a local restaurant, Hong Bo, had registered his son with the program. He said the program would help his son to take responsibility for growing the family business.

In 2012, Foshan's private economy had surpassed an added value of 400 billion yuan, roughly equivalent to $65 billion. This contributed to more than 60 percent of the city's total GDP.

According to Liu Yuanxin, close to 90 percent of business owners are projected to resign and hand over their business to their children in the next 5 years. As a result, the department had decided to create the training program as private firms are important for the economy.

However, some citizens have expressed their indignation over the program.

"I think this training program builds close relations between private tycoons and local officials, leading to more corruption and wider wealth gap," a netizen wrote in Weibo.

Liu Yuanxin was quick to respond, saying that participants in the program worked as assistants to top level management in SOEs without pay.

Meanwhile, the organization department looks to widen its scope. An official with the department said that training periods will be lengthened from the initial six months, to one year. Listed companies, private firms and village committees are also expected to join the training program, allowing participants to work among their ranks.

TagsFoshan, Fuerdai, first generation, private economy, business sector, social news, Culture, inheritance, legacy, family business