Abstract:The transition of Zhejiang Merchants is a call from the modern time, since the old generation will gradually be retiring because of old age within the coming 10 to 20 years. Thus the group transition of Zhejiang Merchants is closely related to their generation subrogation. This thesis holds that the successors of the merchant group are mostly not the so called “affluent 2nd generation successors”, but the grass rooted potential entrepreneurs. Therefore, how to appropriately direct the generation subrogation of minor entrepreneurs as well as the transitional conception of the group of potential grass rooted entrepreneurs, based on thorough knowledge of the generation characteristic of the new successors, will place much weight on the successful transition of the Zhejiang Merchants as a group. Compared with the old generation, the potential new generation of Zhejiang Merchants undergoes enormous changes in their growth environment: the old are mostly from poor mountainous area with little cultivated land, while the new all have a high living standard but with obviously different levels; the old are mostly farmers or craftsmen, while the new are familiar with college education or knowledge-based economy; the old struggle to survive in margins of trades and to follow others examples while the new are producers of the network times and attempting to incorporated into the main stream of business. Thus, to cultivate a new generation of Zhejiang Merchants involves a flexible policy in directing a successful transition under a changing environment.