challenges, best practices & future outlook of entrepreneurship in china
TRANSCRIPT
CHALLENGES OF ENTREPRENEURSHIP IN CHINAKshitij Kumar Parashar (KP)MBA Candidate, Class of 2017Guanghua School of ManagementPeking University+86 1570 157 [email protected]
WORLD BANK INDEX: EASE OF DOING BUSINESS
CHALLENGES > BEST PRACTICES > FUTURE
▪ Challenges faced in each step
▪ Biggest Challenges
▪ Best Management Practices
▪ Reforms & Future
Hiring Talent
Step 3
Registering a Business
Step 2
Raising Capital
Step 1
RAISING CAPITAL
RAISING CAPITAL▪ Knowledge Asymmetry
▪ Guanxi plays key role
▪ Lot of funding for star players
REGISTERING A BUSINESS
REGISTERING A BUSINESS▪ Requires 13 steps and stamps
▪ Takes approximately 25-30 days
▪ Requires expertise in government bureaucracy
HIRING TALENT
HIRING TALENT: TIGHT TALENT MARKET
45% of employers
believe there is a skill shortage* 2015 Hays Asia Salary Guide
HIRING TALENT: HIGH TURNOVER
19.1%in IT sector in 2015
WHY DO EMPLOYEES LEAVE?
▪ Higher Salary
▪ More learning
*Salary & Employment Outlook for China 2015: Michael Page Consulting
HIRING TALENT: AGAINST THE GIANTS
HIRING TALENT▪ Shortage of mid-senior level executives
▪ High Employee Turnover Ratio
▪ Up against the big industry giants
GOVERNMENT RELATIONS
GOVERNMENT RELATIONS
▪ Government Rules differ across provinces
▪ New sectors have uncertain regulatory environment
▪ Corruption avoidance policies
JACK MA
“Be in love with government,but never marry them”
BIGGEST CHALLENGES
BIGGEST CHALLENGES
▪ Knowledge Asymmetry in Raising Capital
▪ High Employee Turnover Ratio
▪ Uncertainty of government regulation
BEST MANAGEMENT PRACTICES
BEST MANAGEMENT PRACTICES▪ Price Leadership wins the battle
▪ Guanxi is ever more important as new sectors undergo regulation
▪ Promote people more often
▪ Inculcate a harmonious and inclusive company culture
REFORMS
REFORMS▪ Anti-corruption Campaign
▪ Cut down procedures for registration to one day
▪ Financial markets : slow reform
▪ Made in China 2025: 13th Five Year Plan
▪ Promoting entrepreneurs in Tier 2 & 3 cities
FUTURE OUTLOOK
SUN, CEO OF SOFTBANK
"I have strong feeling, 10-15 years from now, despite shaking situation in China, they will surpass US. And, after 20-25 years, India will become No. 1".
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