entrepreneurial china

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China: 10 Insights into Chinese entrepreneurs

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China's exponential growth is propelled by its entrepreneurs. This concise overview analyses what drives them - and what holds them back. Four different types of entrepreneur are profiled.....

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Page 1: Entrepreneurial China

China:10 Insights

into Chinese entrepreneurs

Page 2: Entrepreneurial China

Asia 5Bringing you a flavour of businesstrends in Asia...in just 5 minutes

A Futures Coaching initiativewww.futurescoaching.com

Page 3: Entrepreneurial China

engine

The changes in China have been propelled

by Chinese entrepreneurs....

Aided by government's policies

towards economic reform

Page 4: Entrepreneurial China

71% Chinese business people want to be self-employed (vs 55% USA, 45% EU)

Chinese entrepreneurs want to go fast.....37% want to expand quickly vs 14% USA and 17% EU

(source: Eurobarometer, 2009)

aspiration

Page 5: Entrepreneurial China

four types

There are four types of entrepreneur in China

1. Self-employed subsistence workers

2. Tide Players – driven to escape poverty, emerging from late 1980s

3. Sea Turtles – Foreign educated Chinese returning to start businesses from late 1990s

4. Young entrepreneurs motivated by recent economic opportunity

Page 6: Entrepreneurial China

tide players

>50 year old Chinese entrepreneurs started with nothing...but at least had no incumbents nor inherited

wealth to challenge them

Grew up under Mao: worked on farms; very poor; self taught maybe had 'rightist' parents who were executed

Luckiest went to University when opened up after 1975; but few speak English

These people are true survivors: they have a pragmatic

philosophy: “When you face a

great tide, the important thing is

action”

Page 7: Entrepreneurial China

sea turtlesAware of the role foreign-educated Chinese played in

Taiwan's take-off, authorities have actively encouraged this return e.g. by setting up science parks, working with

foreign companies

Returnees from the

West are known as hai gui

Many of China's most successful entrepreneurs skillfully have adapted winning American concepts

for domestic consumption e.g. Taobao (the Chinese ebay)

Page 8: Entrepreneurial China

youngProfile of young Chinese entrepreneurs

- fewer single children(since solo child's parents are more controlling)

- more mid-region than eastern coast (more virgin territory, plus coast now affords salaried alternatives)

- more male, urban

- educated, often studying law or business (but less to PhD level)

- motivated by opportunties ordissatisfaction with standard office work

(source: 2011 study by Tsinghua University)

Page 9: Entrepreneurial China

Business people in China are politically conservative and favour slow change over radical

What counts is stability and efficiency – and the ongoing goodwill of the regime

Official policies toward private businessradically improved after 1992

political realism

Page 10: Entrepreneurial China

Politics is important. 40% of entrepreneurs are in the Communist Party; it is essential to court good

relationships with the authorities

Guanxi (connections) is much misunderstood by the West; even returning Chinese have to re-educate

themselves to the rules of the game

It is said that the US is ruled by law and China by people

Entrepreneurs must be ready for factionalism, opportunistic power realignments, gifts for officials etc.

the way things get done

Page 11: Entrepreneurial China

Things holding back entrepreneurs

- continuing political and legal uncertainty

- access to funding (capital markets are underdeveloped)

- difficulty attracting high skilled labour and management

- less nurturing talent (although colleges for entrepreneurs have opened e.g. by Alibaba businessman, Jack Ma)

- residual low status attached to private business (but this has radically improved)

still murky

Page 12: Entrepreneurial China

moreGet into the heads of some of China's successful entrepreneurs (and academics)

Page 13: Entrepreneurial China

About Futures CoachingCelebrating 5 years!

Working for great clients Doing great thingsAnticipating

* the future of retail* the future of offices* the future of banking* the future of mobility

Innovating* new fund-raising offers* consumer healthcare NPD

Coaching* trends training for insight teams* personal rejuvenation

Speaking* engagements from Taipei to Toronto

Researching* management interviews* expert in-depths* consumer focus groups

Page 14: Entrepreneurial China

Working with Future Coaching Analysis on the future of regions, countries, sectors or

industries – jumping ahead of the curve; de-risking the future, achieving thought leadership; enabling longevity

Innovation sessions – brainstorming to harness growth Workshopping trends – evaluating impacts on

businesses or brands; future-proofing existing offers Conference speeches on major trends - accelerating

management awareness Training for consumer insight teams – boosting internal

futuring capabilities

Page 15: Entrepreneurial China

Website: www.futurescoaching.comBlog: http://futurescoaching.typepad.com

Email: [email protected]

LONDON • PARIS