To inherit a fortune and a family business from a rich father is a dream for many. But when it comes to reality it can be a headache, if not a nightmare.

Zou Lihan is a 28-year-old who recently took over her father's textile factory. Now, she often argues with him about business decisions.

"We have different ideas about how the business should be run. He wants to buy more equipment and build more factories while I think we should be cautious about expansion," she said.

"What bothers me most is that my father is still acting as the company boss, even though he is supposed to have retired," Zou added.

Zou's troubles with her father are not uncommon in east China's Zhejiang Province, the home of many companies that pioneered the development of China's private sector.

Before reform and opening up, China had a planned economy and private businesses were illegal.

The Chinese government adopted a set of policies in the 1980s that eased restrictions and instituted conditions favorable to the development of private businesses.

Over three decades of development, private businesses in China have created massive wealth and employment opportunities for much of the nation's workforce.

According to the China Private Economy Development Report released by the All-China Federation of Industry and Commerce in 2006, China's private economy accounted for around 65 percent of gross domestic product (GDP) in 2005 and generated 84.1 percent of job opportunities in the secondary and tertiary industries.

Now, as the first generation of Chinese entrepreneurs near retirement age, the issue of succession has risen to the fore.

According to Zhejiang Chamber of Commerce research, about 80 percent of private enterprises face succession problems.