The business of being rich and idle

They are young, drive Ferraris, sip Chateau Lafite, and carry Hermes bags while their peers squeeze onto the metro or save to buy an average car. They are called "Fu Er Dai," the children of wealthy families, the second generation of wealth, the Rich 2G. In China they are the target of envy and often hatred. They are famous for being famous and now they are famous for not wanting to run their family businesses.

As the first generation entrepreneurs, who started their businesses when China reformed and opened up over 30 years ago, approach retirement, their children are under pressure to take over the family businesses and carry on, continuing China's economic growth.

"There may be a major crisis for China's economy, if we don't see these wealthy young people taking over their parents' businesses," warned Yu Mingyang, a professor from the Antai College of Economics and Management at Shanghai Jiao Tong University. His concerns are not without foundation.

Yu surveyed 182 family businesses, all leading concerns in a variety of fields, and said 82 percent of the owners were finding it difficult to talk their sons or daughters into taking over. This was a lot more that Yu had expected.

"Family businesses account for 60 percent of China's GDP and if the majority of the wealthy second generation do not want to take over the businesses, there will be a problem maintaining the growth of China's GDP," Yu said.

And there is no much time left to solve this problem. "The first generation in our survey were aged an average 52. If successors are not found in the next decade, the families may have to sell or close down their businesses," Yu said.

Not all bad eggs

For many, China's wealthy second generation are notorious for driving luxury cars at high speeds and avoiding responsibility by using their parents' connections. But experts say that most of the Rich 2G are good people and deserve encouragement.

"The government, schools and the general public should encourage the Rich 2G because if they do not become useful, it is too easy for them to go to extremes. With all that money and nothing serious to do, they can cause trouble and disturb everyone they are involved with," Mao Lixiang, the founder of Fortile Group, a kitchenware manufacturer, told the Global Times.

The retired billionaire has opened a school in Zhejiang Province for Rich 2G students and tries to help family businesses smooth the handing over of inheritances.

"Many Rich 2G wear luxury brand suits and drive expensive cars. But only a fraction speed or gamble. I have to say though that those who do behave badly leave a big impression on the public and they can become a problem for society," Mao said.

Professor Yu Mingyang agreed. "I should say that 95 percent of the Rich 2G that I know are disciplined and have a decent education. They could become good company executives," he said.

But their notorious reputations (founded or unfounded) are keeping some of the young people from ever seeing themselves as new entrepreneurs.

"Some young people tell me that they really hate the reputation. They want to be set free from the responsibilities and allowed to live ordinary lives," Mao said.

Professor Yu said that some of the wealthy young ask to be called "second-generation entrepreneurs" and not Rich 2G.

"They are unfairly judged by the public who immediately assume they are spoiled and arrogant. The Rich 2G need understanding, which is very important if they are going to inherit businesses successfully," he said.