Author Box
Articles Categories
All Categories
Articles Resources

Entrepreneurship in India and China

February 25, 2012 | Comments: 0 | Views: 178

Entrepreneurs in India and China are driving global economic growth and community development. While having much in common, they also exhibit a number of interesting differences, including their primary motivations for business ownership as well as their main sources of financing and business advice.

Reasons for Starting Businesses in India and China

Like most other places, money and business go hand-in-hand for entrepreneurs in India and China, though not necessarily to the degree that might be expected, according to the most recent edition of The Legatum Institute Survey of Entrepreneurs: China & India from October, 2010. Conducted in partnership with the online polling research firm YouGov, the Legatum survey describes itself as "one of the largest surveys of entrepreneurs in the world."

In China, nearly half or 47 percent of the entrepreneurs who responded to the Legatum/YouGov survey cited the desire to make more money as their primary motivation for starting their own businesses. By comparison, just 24 percent of Indian respondents, barely half the share of corresponding Chinese entrepreneurs, regarded money as their main reason for starting a new company.

Thirst for Independence

In India, it turns out the hunger for independence and desire to be one's own boss handily out-ranks the urge to accumulate more financial assets as the leading motivation for starting a new business. In fact, 52 percent of Indian entrepreneurs cited it as their main motivation for developing a new enterprise. By comparison, 37 percent of Chinese entrepreneurs cited the desire for determining their own economic destiny as their main motivation for starting a new business.

Financing and Advice - All in the Family?

Entrepreneurs in India tend to rely more on family members than their Chinese counterparts. In India, family is the main source of financing to start a business according to the Legatum survey. Indian entrepreneurs are also most likely to consult family for advice about running their businesses.

Family plays less of a role in the activities of Chinese business owners. For financing, entrepreneurs in China are most likely to rely on debt financing in the form of loans. When it comes to advice, Chinese business owners most often turn to fellow entrepreneurs for guidance.

Government and Corruption

Business owners in India and China view government and corruption as the leading factors in their countries' respective future economic growth. For Indian entrepreneurs, "cleaning up corruption" was "the most commonly cited factor determining India's future economic growth." To entrepreneurs in China, their "government becoming more business friendly" emerged as the most commonly mentioned determinant of China's economic growth going forward. While somewhat less concerned about corruption than their Indian counterparts, more than half (53 percent) of Chinese entrepreneurs still felt, "corruption is hurting business' chance of success." In India, the corresponding figure for the detrimental effect of corruption was 63 percent of survey respondents.

In both India and China, business owners saw ample room for their governments to improve on making their countries more conducive to supporting entrepreneurial activities. In India, just 18 percent of business owners surveyed responded that their government "was doing a 'very good job' making their country a good place for entrepreneurs." In China, a relatively high 37 percent of business owners gave their country "very good" marks for meeting the needs of Chinese entrepreneurs.

Fortunately, government shortcomings and corruption do not seem to be greatly undermining Indian and Chinese entrepreneur's belief in ultimately realizing the fruits of their initiative and labors. In China and India, 78 percent and 74 percent of the business owners surveyed, respectively, believe "people can get ahead by working hard."

This article about entrepreneurship in the BRIC countries of China and India comes from my site Global Sherpa, which publishes articles on current topics in globalization, international development and world rankings.

Please drop me a line through one of the contact forms on the site with any comments, recommendations, or project ideas.

Over time, I hope the site will become a catalyst for learning and collaborative projects that will help spread the interest in world affairs and promote international understanding, development and well-being.

Article Copyright Global Sherpa. All rights reserved.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Chinese Entrepreneurs


Indian Entrepreneurs


China Business


India Business

Rather than blame others, take personal responsibility to reduce our dependence on oil by using less of petroleum derived products. Repeatedly we are hearing about oil spills, rising prices on oil

By: Kyles Humphrey l News & Society > Energy l October 17, 2012 lViews: 234

Traditional analysis of debt and deleveraging (the process where households, corporations and governments are forced to reduce their overall debt) is often biased and incomplete. Opinions of how to

By: Ben Esget l News & Society > Economics l August 11, 2012 lViews: 296

In this high paced digital age, it's easy to become displaced from the people and places around you. However, it's important to support your community and your neighbors who live in it, and work hard

By: Monai Gupta l News & Society > Politics l July 11, 2012 lViews: 332

In a bold, unpredictable move, President Obama declared on Monday his desire to extend the Bush-era tax cuts for all but the highest-income earners, by which he means anyone richer than Al and Peg

By: Scott Spiegel l News & Society > Politics l July 10, 2012 lViews: 228

Bipartisanship isn't always sweet. Especially when it comes to the politics of sugar.

By: Larry M. Elkin l News & Society > Politics l July 09, 2012 lViews: 237

In a direct reflection of the financial market's currently unsteady nature, the wholesale energy markets tumbled to a four-month low at the end of May. The bearish market was thanks to the continuing

By: Graham N Paul l News & Society > Energy l July 09, 2012 lViews: 222

While everyone is looking at the Euro Crisis and watching the news, perhaps they might not realize the quick escalation of events in the on-going Syrian Civil War. Okay so, let's discuss all this

By: Lance Winslowl News & Society > Internationall June 14, 2012 lViews: 209

I visit the UNHCR web site, as well as those of other aid agencies, and as a journalist I am always sad that (a) so many people in the world are still being turned into refugees, and (b) my

By: Mike X Leel News & Society > Internationall June 12, 2012 lViews: 171

Cameroon as you may know or not know is a rather small, but rich country in terms of cultural, climatic, and biodiversity like the size of San Francisco. It's a country with a unique history and

By: Alomboh Pefite Geofreyl News & Society > Internationall June 10, 2012 lViews: 157

The backbone of British diplomatic assistance for the Jewish nation was the 1917 Balfour Declaration, by which British Foreign Secretary Lord Balfour his state's assistance of the development of a

By: Michael M Rankl News & Society > Internationall June 06, 2012 lViews: 154

The recognition of the State of Palestine by UNESCO is considered a major accomplishment for Palestinians. 2 in 3 respondents (66%) feel this recognition will have a positive impact on their lives -

By: Anthony M Smithl News & Society > Internationall June 06, 2012 lViews: 180

The International Atomic Energy Agency (IAEA), stated that it believes Iran has developed the technology required to produce nuclear weapons and appears to have conducted extensive research on a

By: Sundip S Chahall News & Society > Internationall June 05, 2012 lViews: 173

More than one billion people participate in Earth Day each year. The first Earth Day took place on April 22, 1970. The environmental campaign A Billion Acts of Green was selected as the theme for

By: Jason S Waltersl News & Society > Environmentall April 22, 2012 lViews: 159

Development is a process that refers to improving economic performance, living standards and other factors that affect the well-being of the people living in a country. The determination of whether a

By: Jason S Waltersl News & Society > Internationall April 08, 2012 lViews: 142