Business Management in China - Developing a Nursing Care Home

Business Management – Nursing Care Home  
1. Introduction
If I would establish a company in China, I would found a nursing care home for elderly people. For me it is one of the biggest investment and business sectors in the future of China.   Some titles of newspaper article also show the importance of nursing care homes in the future of China like:
  * “China needs 10 million elderly care nurses” (2008 Wang Zhenyao, leader of the social security and welfare bureau)
  * “Beijing Encourages Private Nursing Homes - Beijing has adopted new measures encouraging non-governmental institutions and individuals to invest in care centers for aged citizens in the national capital.” (2005, china.org.cn)

The reasons for this development are as followed:
  * Because of the one child policy the future generations will have problems in caring for their parents and grandparents. One child cannot care for 2 or more people, especially if they are heavily caring intensive. It will be difficult to combine a job and caring for someone.
  * With the technology improvements in medicine and the better health status in the higher age people will get older. It means, that in future the amount of old people is growing. With reaching older ages, the number of care intensive people will also increase.
  * Only 1.5 % of all people over 65 are living in nursing care homes at the moment. So the market will offers much growth in the future.
  * All this reasons combined will result in a strong demographic change (see Figure 2), which means that China will need more infrastructure to handle this problems. Right now Chinese government pay high subsidies to nursing care homes because they already recognized the lack of places in future and try to get investors to build new homes.
  * The annual income of people in China is growing, so it will be easier for them to pay a place in a nursing care home. If a pair works it is more effective in comparison if only one part is working and...