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Indian and Chinese Entrepreneurs
The Entrepreneurship School ^ | 9 August, 2010. | Erik Rostad

Posted on 08/09/2010 11:42:02 AM PDT by James C. Bennett

In 2007, a group of Georgia State students traveled to India to answer one central question – “Was the Indian government assisting or halting entrepreneurship?”

Our findings were that there were plenty of opportunities to start a business in India, that the bureaucratic process often hindered the speed of a start up, and that the Indian Government’s best policy would be to get out of the way.

A recent study on Entrepreneurial levels in India and China confirm these findings and added some very interesting information:

As we saw in our 2007 trip to India, entrepreneurs in India say getting around the government’s hefty bureaucracy is the is the main key to success.  For the Chinese, it appears that the ability to navigate within this bureaucracy is the key to success.

What will happen as China’s middle class demands more protection and less government?  How will this shift entrepreneurship in China?  And what happens if India’s government truly begins to get out of the way?  What successful traits will then be necessary to build a successful business in India?  These are questions we will continue to monitor in the rise of India & China.


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: business; china; entrepreneurship; india

Family vs. the State in Indian and Chinese Entrepreneurship

 

This August 3 Wall Street Journal article is based on a Legatum Institute survey comparing Indian and Chinese entrepreneurship and raises important issues about the roles of the State and the family in promoting entrepreneurship.

The common elements between Indian and Chinese wealth-creators are their optimistic view of the future, compared to Americans (“Why I’m Not Hiring”) and Europeans (“Everything’s Fine With Greece, Just Ignore Some Facts”) presumably, and their lack of concern about the impact of the global financial crises on their businesses.

But Indians and Chinese differ widely on why they become entrepreneurs in the first place, where they look for capital, and whether they look to the State to support and encourage them. As the article’s subtitle puts it, “Indians believe they succeed despite the State. The Chinese say they succeed because of it.”

I draw two conclusions from the study: Those who favor freedom, creativity and self-employment seek limited government, while those who seek greater wealth for its own sake are seemingly indifferent about the size and scope of government. And greater trust in the family seems to go along with less trust of the State.

It follows that friends of freedom and the family ought to favor the Indian to the Chinese version of entrepreneurship.

1 posted on 08/09/2010 11:42:04 AM PDT by James C. Bennett
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To: James C. Bennett
that the bureaucratic process often hindered the speed of a start up, and that the Indian Government’s best policy would be to get out of the way

Now please go to Washington DC nand teach our political class these facts.

2 posted on 08/09/2010 11:45:09 AM PDT by MNJohnnie (The problem with Socialism is eventually you run our of other peoples money. Lady Thatcher)
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To: James C. Bennett

Guanxi - culturally, structurally, and otherwise institutionalized CORRUPTION to the core. Expectation for doing business is you scratch someone else’s back so they may scratch yours. Especially the gov officials.


3 posted on 08/09/2010 12:03:41 PM PDT by farlander (Sic Semper Tyrannis)
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To: James C. Bennett

btt


4 posted on 08/09/2010 12:42:32 PM PDT by Cacique (quos Deus vult perdere, prius dementat ( Islamia Delenda Est ))
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To: James C. Bennett

“Major motivation for Chinese entrepreneurs is to make more money.”

Probably the only motivation for almost any Chinese to ever do anything. They seem to be “economic animals”.


5 posted on 08/09/2010 3:58:10 PM PDT by flowerplough (Thomas Sowell: Those who look only at Obama's deeds tend to become Obama's critics.)
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