In the last 40 years, China has experienced rapid economic and social development. With a 9 trillion US dollar GDP economy and a hard working and dilligent population of 1.5billion people, it holds economic growth averaging about 10 percent a year, which has lifted more than 500 million people out of poverty and has easily placed itself as one of the most thriving economies in the world today.
China is also one of the most entrepreneurial countries on earth. In accordance with Global Entrepreneurship Monitor (GEM), this commentary is based upon on a range of dimensions, such as fear of failures and entrepreneurial intentions. Although, China is not yet an innovative economy, as said by GEM, it is an efficiency-driven economy that is a cut above factor-driven economies that are a norm among developing countries.
This is where rural China fits in a place where 50-60% of China's population is. It is not over spoken that the history of Entrepreneurship in China has been written by the people living in rural areas. One interesting fact to note about the economy of China is that some of its most competitive manufacturing operations are not located in the highly urbanized regions of the country but they are found in some of the historically urbanized regions of the nation such as Hunan, Sichuan and Anhui.Some of the best manufacturing firms in China, such as Wanxiang, an automobile supplier and Geely, the firm that just acquired Volvo, were all started by rural entrepreneurs.
One is that most of the analysts—outside of China and even inside the country—do not associate China’s economic success with entrepreneurship. This is because China's economy is not yet innovative with much of it's economic surge in recent times attributed towards the government, foreign direct investment and massive infrastructural construction.
In China entrepreneurship is also defined quite differently.
When the western world think of entrepreneurship, they think of people like Bill Gates, Steve Jobs, Larry Page and Sergey Brin, technical geniuses who created huge business empires based on science and technology. But in a context of a poor country, technical entrepreneurship is almost by definition less relevant as all the most dynamic entrepreneurship in China is rural in terms of geography and setting.
Moreover, there are two facets of Entrepreneurship - the catch up and frontier both which are different in nature. Catch up entrepreneurship engages in activities which are already an active force within the economy but are being copied and proposed at much lower costs. E.g. Establishment of a new mobile phone that is cheaper and has differentiated features than the product it was inspired by. With that being said, the majority of Chinese are the catch up kind and this further substantiates as to why China's economy is not an innovative one as of yet.
China is also one of the most entrepreneurial countries on earth. In accordance with Global Entrepreneurship Monitor (GEM), this commentary is based upon on a range of dimensions, such as fear of failures and entrepreneurial intentions. Although, China is not yet an innovative economy, as said by GEM, it is an efficiency-driven economy that is a cut above factor-driven economies that are a norm among developing countries.
This is where rural China fits in a place where 50-60% of China's population is. It is not over spoken that the history of Entrepreneurship in China has been written by the people living in rural areas. One interesting fact to note about the economy of China is that some of its most competitive manufacturing operations are not located in the highly urbanized regions of the country but they are found in some of the historically urbanized regions of the nation such as Hunan, Sichuan and Anhui.Some of the best manufacturing firms in China, such as Wanxiang, an automobile supplier and Geely, the firm that just acquired Volvo, were all started by rural entrepreneurs.
One is that most of the analysts—outside of China and even inside the country—do not associate China’s economic success with entrepreneurship. This is because China's economy is not yet innovative with much of it's economic surge in recent times attributed towards the government, foreign direct investment and massive infrastructural construction.
In China entrepreneurship is also defined quite differently.
When the western world think of entrepreneurship, they think of people like Bill Gates, Steve Jobs, Larry Page and Sergey Brin, technical geniuses who created huge business empires based on science and technology. But in a context of a poor country, technical entrepreneurship is almost by definition less relevant as all the most dynamic entrepreneurship in China is rural in terms of geography and setting.
Moreover, there are two facets of Entrepreneurship - the catch up and frontier both which are different in nature. Catch up entrepreneurship engages in activities which are already an active force within the economy but are being copied and proposed at much lower costs. E.g. Establishment of a new mobile phone that is cheaper and has differentiated features than the product it was inspired by. With that being said, the majority of Chinese are the catch up kind and this further substantiates as to why China's economy is not an innovative one as of yet.
No comments:
Post a Comment