THE CHARACTERISTICS AND ATTRIBUTES OF
CHINESE ENTREPRENEURS IN THE
SOCIALIST MARKET ECONOMY

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AB S TRACT
Aft er t h e en d o f t h e C ul tu ral R evo l u t io n i n 1 97 0 ’s, Ch in a t ran s fo rms it s elf fro m a cen t rall y p l ann ed econ o my t o an eco no my wi t h “C hi n es e ch aract eri s ti cs ” o r wh at is k n o wn as t h e s o ci al is t mark et eco n o my i n t h e 1 9 80 ’s . As a res ul t, s mal l an d med i u m -s i zed en t erp ris es fl ou ri sh ed an d ent rep ren eu rs hi p fro m p ri vat e s ect o r co nt ri bu tes s ub st an ti all y t o t h e econ o my e ver s i n ce. Th is p ap er is to ex ami n e th e ch aract eri s ti cs and t h e d is ti n ct i ve at t rib ut es o f p ri vat e en t rep ren eu rs i n t h e P eo pl e’s R ep ub li c o f C hi n a i n th e s ett in g o f a t ran si ti o n al eco no my u n d er t h e co mmu n i s t -co nt rol l ed p ol it i cal en vi ro n me n t .
KE Y WOR DS : en t rep ren eu r, C hi n a, man age men t , Co n fu ci an is m, ch aract eri s ti cs , at t rib ut es , gu anx i , fen g s hu i

1 . INTRO DUCTIO N
C hi n a exp eri en ced t remen d o u s eco n o mi c gro wt h si n ce th e ti me wh en t h e co u n t ry ad o p t ed a mark et -o ri ent ed p ol i cy t o ward s t h e d evel o p men t o f a mo re “o p en ed ” an d
“cap i t ali st ” econ o my i n t h e 1 9 80 ’s . B efo re t h e 1 98 0 ’s, p ri vat e s ect o r p arti ci p at i on i n t h e eco no my was l i mi t ed du ri n g t h e C ul t u ral R evo l u t io n i n t h e 1 9 70 ’s . In t h e l ast t wen t y fi ve years , t h e eme rgen ce o f C h in es e ent rep ren eu rs , i n t h e fo rms o f u rb an an d ru ral to wn s hi p -an d -vi l l age en t erp ris es (TVE s ), fami l y b u s in es s es (“get ihu ”), p ri vat el y o wn ed fi rms (“s i ren q i ye”), sp i n -o ffs o f st at e -o wn ed en t erp ri s es and pu b li c li st ed j o in t s t o ck co mp an i es , h ave creat ed i mp act n o t o nl y o n t h e econ o my b u t als o on t h e s o ci al an d po li ti cal asp ect s. Th e ch aract eri s ti cs an d at t ri bu t es o f t h es e en t rep reneu rs p ro vi d e t h e i n si gh t s t o th e mo t i vat i o n al fact o rs, cul t u ral b ack gro u n d an d b eli ef s ys t ems o f en t rep ren eu rs i n C hi n a.

2 . CH ARATE RIS TICS AND ATTRIB UTE S
2 . 1 . C o n fu ci ani s m
As An d ers en et al . (20 0 8 ) n ot ed t h at th e C o n fu ci an co n cept o f h ard wo rk, d eferen ce an d gro up -o ri en t edn es s h ave b een reco gn i s ed as th e d et ermi n i ng fact o r s i n t h e econ o mi c s u ccess in E ast As i a, p art i cul arl y amo n g et h n i c C hi n es e gro u p s .
S h eh (2 01 0 ) con cu rred t h at C hi n es e cu lt u ral val u es p l ayed i mp o rt ant p arts in s h ap in g C hi n es e b us in es s o rgan i zati on al , man ageri al an d l ead ersh ip p racti ces . Th e i mp o rt an ce o f fa mi l y at t ach ed to th e C o n fu ci an t eachi n g h elp ed t o fo s t er h armo n i o u s rel ati o ns hi p wi th in th e me mb ers o f o rgan i s at io n s. In fact , b u si n ess en t erp ris es were p ercei ved as ex t en s io ns o f t h e fami l y s ys t em. Th e p at ernal i st i c fa mi l y gro u p fo rge d st ro n g l i nk s an d t h e fami l y me mb ers ’ act i vi t i es were d es i gn ed t o p res erve we al t h and p as s i t t o t h e fu tu re gen erat io n amo n gs t th e fa mi l y me mb ers (Z al p al s k a an d E d ward s , 2 0 01 ).
P is t ru i et al, th ro u gh a s u rvey co n d u ct ed o n ent rep ren eu rs i n Wu h an, C h in a o n t h e mo t i ves o f en t rep ren eu rsh i p, con cl ud ed t h at th e fi nd in gs ap p eared t o h ave as s o ci at io n wi th t h e C hi n es e val u e s ys t em s u ch as C o n fu ci ani s m, wh i ch en co u raged l earni n g an d d il i gen ce an d in tu rn t h ey h ad an i mp act o n t h e reas o n s an d mo t i ves o f b ei n g ent rep ren eu rs .
Yo u n g an d Co rzi n e ( 2 00 4 , ci t ed in An d ers on et al ., 20 0 8 ) b eli eve d t h at Co n fu ci an p h il o so p h y st il l remai n ed rel evan t t o d ay an d th i s vi ew was s u p p o rt ed b y o t h er res earch ers (Hu t chi n gs an d Mu rray, 2 0 02 and C h en g an d Ro s ett , 1 9 91 , ci ted i n
Ad ers o n et al . , 2 00 8 ) wh o cl ai med t h e b u si n es s cul tu re p reval en t in C hi na was b as ed on fami l y val u es o r g u an xi co n n ect io n s wh i ch were u n d erp i nn ed b y
C o n fu ci an et hi cs .
C hi n es e en t rep ren eu rs are n ot on l y fo un d t o h ave b een i n flu en ced b y
C o n fu ci ani s m i n b u si n e ss p ract i ces , i t i s al so evi d en t fro m M cDon al d (2 01 1 )’s wo rk t h at t h e i d eo lo gi cal th in k in g o f C h ai rman M ao al so pl ays a rol e in th e s t rat egi c man age men t an d b eh avi o u rs o f so me p ro mi n en t b us in es s l ead ers o f mo d ern C h in a. M ao is m cen t res aro un d t h e p hi l os o ph y o f di al ect i cs wh i ch i s t h e

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co n cep t o f con st an t s t ru ggl es o r cl as h es b et ween d i fferent cl ass es o f p eo pl e o r i d eol o gi es . Un d er t h e d o ct rin e o f d i al ect i c s , o n e fo rce meet s and o verco mes an o t h er an d i f n eces s ary, it wi ll repl ace th e ol d o rd er wi t h a n ew o rd er b y d es t ro yin g t h e cu rren t s t ru ct u re o r s ys t em. As ex t ract ed fro m i n t ervi ews wi t h s en i o r b us in es s l ead ers o f Hu awei Tech n o lo gi es and Gree E l ect ri c Ap p li an ces ,
M cDo n al d (2 0 11 ) no t ed wo rd s and co mmen t ary u s ed b y th es e C hi n es e en t rep ren eu rs were refl ect i ve o f M aoi s m t h in ki n g an d mi li t ary t acti cs e. g. b u si n ess st rat egy t o gai n mark et s h are is aki n t o “u si n g t h e co un t rys id e to en ci rcl e ci ti es ”; “mas s camp ai gn ” an d “at t ack ” i n “wo l f s pi rit ” wi t h
“u n yi el di n gn es s ” an d “s pi rit o f reb ell i on ” in t h e “b at tl es o f bu s in es s wo rld ”;
“ vi ci o u s p ri ce wars ”; “… . b e p rep ared t o mak e s acri fi ces ”; “th ere i s n o mo u nt ai n we can n o t co nq u er” and ot h er mi li t ary met ap h o r s wh i ch were rel at ed t o “Du t y,
Ho n o u r, C o mp an y an d Co u nt ry” (ci t ed in M cDo n al d , 2 01 1 ).
2 . 2 . Gu an x i
On e o f t h e p ecu li ar ch a ract eri st i cs o f C hi n es e en t rep ren eu rsh ip is abo u t gu a n xi o r s p eci al co nn ect io n . In t h e t each in g o f C o n fu ci us , h u man rel at io n sh ip is imp o rt an t i n est abl is h in g go o d wo rk in g rel ati o ns h ip b et ween s up eri o r s an d s ub o rdi nat e s , co l l eagu es an d p eers , cou nt erp arts an d p artn ers an d i t i s t ermed as r en qin g
(wh i ch i s t rans l at ed as h u man feel in gs o r s en si bi li ti es ). In b u si n ess d eal in gs , q in g i s u s ed t o ex p and n et wo rk s and gai n t h e co n fi d en ce o f cu st o mers , s up pl i ers an d o t h er b u si n es s men . B ut i n t od ay’s co n t ex t , it i s t ermed as g u an xi (S h eh , 20 1 0 ).
Th ere are a n u mb er o f d efi ni ti o ns o f g ua n xi b ut i n s i mp l e t erm, i t is a s o ci al p h en o men o n o r co nn ect io n wh i ch is equ i val en t to th e C hi n es e vers i o n o f s o ci al n et wo rk s (Ki n g 19 9 1 , cit ed i n B atj argal , 20 0 7 ). Ho we ver, t h e gen era l agree men t o n it s mai n mean i n g i s th e in t erp ers o n a l rel at io n sh i ps t h at faci li t at e o r con s t rai n s o ci al ex ch an ges (Ts u i et al. , 20 0 0; Yan g, 1 99 4 . B ot h cit ed i n B atj argal , 2 0 0 7 ) .
An d ers o n and Lee (2 0 08 ) co nd u ct ed a s u rve y o n en t rep ren eu rs fro m C h ina an d
Ho n g Ko n g o n t h e su b j ect o f p ercep ti on an d ap pl i cat i on o f g ua n xi in bu s in es s d eal i n gs. Th e fi nd in gs s u gges t ed t h at ent rep ren eu rs fro m b o th co un t ri es ap p eared t o un d erst an d th e ess en ti als o f g u an xi b ut di d n ot enj o y it s u s e. B ot h gro u p s s aw g u a n xi wo u ld b e u s e d l es s and l es s as t h e regu l at io n s an d mark et en vi ro nmen t s i n
C hi n a i mp ro ved o ver t i me.
As J u st i n Tan (1 9 99 ) po in t ed o ut , b u si n ess es i n C h i n a were b o u nd ed b y gu a n xi in wh i ch t h e co n cept was b ui lt o n mu t u al u nd ers t an di n g, t ru st , go o d wil l an d fri en d sh ip . Th e con cep t emp h as is ed o n reci p ro cal rel at i on s hi p an d ret u rnin g fa vo u rs as i n C on fu ci an eth i cs o f q i ng (Ju st in Tan , 19 9 9; S h eh, 20 0 8 ).
As An d ers o n & Lee (2 0 0 8 ) s u gges t ed t h at i n t h e t i mes o f rapi d econ o mi c gro wt h wh ere acces s i b il it y t o fi n an ci al cap it al b ecame eas i er i n C hi n a, t h e Ch in es e en t rep ren eu rs mi gh t b e abl e t o creat e fo rtu n e t h rou gh fo rmal b u si n ess ch an n el s rat h er th an t h rou gh g ua n xi.
Tro i l a an d Z h an g (20 1 2 ) d i fferen ti at ed t h ree t yp es o f g ua n xi: gu an xi fami l y, gu an x i s avi n gs an d gu anx i i n ves t men t s . Th ey ex ami n ed t h e ext en t o f t h ese g u an xi rel at io n sh ip s o n t h e ent rep ren eu rs wi th emp l o yed st aff wh o were me mb er s o f
C hi n es e C o mmu n i s t P art y (CPC ). Th ei r fin d in gs co n cl u d ed th at t h ere was a n egat i ve co r rel at ed rel ati o ns hi p . Si mi l ar st u di es b y Dj ank o v et al (2 00 6 ) wh ere en t rep ren eu rs hi p i n C hi n a was co mp ared to R u ss i a ’s, i t was no t ed th at C hi n es e en t rep ren eu rs were l es s li k el y t o h ave me mb ers h i p i n t h e C hi n es e Co mmu n i st
P art y th an t h ei r Ru s si an co u nt erp arts . Ho we ver, t h e R u ss i an en t rep ren eu rs t end ed t o h ave b et t er edu cati o n al b ack gro un d t h an th e Ch in es e ent rep ren eu rs . Djan k o v et al . (20 0 6 ) al so fou n d t h at C hi n es e en t rep ren eu rs t rus t ed th e go vern men t at all l evel s mo re s u b st ant i al l y th an R us s i an ent rep ren eu rs . An ot h er s t ud y b y Bat j argal
(2 0 0 8 ) wi t h t h e co mp ari s o n s mad e b et ween C hi n es e an d R us si an ent rep ren eu rs , t h e C hi n es e en t rep ren eu rs t en d ed t o op erat e wi th in a s mal l er n et wo rk wh ich co n s is t ed o f fami l y me mb ers , fri en d s an d co ll eagu es . Th e rest ri ct i on was

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rei n fo rced b y t h e fact th at t h e ru l es o f g u an xi creat ed b arri ers t o n et wo rk me mb ers h i p .
2 . 3 . F ami l y-B as ed
In t h e Co n fu ci an con cep t o f s t abi li t y, t h e fami l y i s th e cen t re o f all rel atio n s hi ps .
Hen ce, t h e b us in es s en t erp ris e is als o an eco no mi c en t it y wh i ch th e C h in es e en t rep ren eu r n eeds to p res erve h i s fami l y b u s i n es s ’s su rvi val (S h eh , 2 0 08) . In d o in g s o , t h e C on fu ci an i d eas o f p at ern ali st i c h i erarchi cal o rd er are t o b e o b s erved . Kn o wn as Wu -L u n (fi ve h u man rel at i o ns h ip s ) wh i ch ou tl i n es t he rel at io n sh ip s b et ween ru l er -s u bj ect , fat h er -s o n, hu s b an d -wi fe, eld er -yo u nger b ro t h ers and fri en d -fri en d . Th es e rel ati on s hi ps are ch aract eri s ed b y t h e reci p ro cit y o f du ti es an d ret u rn o f favo u rs (F ei 19 9 2, cit ed i n Pi -Ch i Han , 2 0 13 ) .
Lead ers wi t h th e p at ern ali st i c ro l e s s h al l act wi th fath erl y b en evo l en ce i n t rad it io n al Ch i n es e so ci et y (P ell egri n i an d S cand u ra 2 0 08 ). In o rgan i s at ion s , l ead ers act li k e p aren ts and th e su b o rd i n at es are ex p ect ed to sh o w s up p o rt o f p at ern ali s m b y b ei n g su b mi s s i ve an d o b ed i ent t o t h e o rd ers o f t h e l ead ers
(Di ck so n , Hart o g an d Mi t ch el so n 2 0 03 , ci t ed in P i -C hi Han , 20 1 3 ).
As man y C h i n es e s mal l an d med i u m-s i zed en ti ti es are fami l y -o wn ed , st u di es co n d u ct ed i n t h e res earch p ap ers po i nt ed o ut th e su cces s fact o rs o f t h es e en t it i es were at t ri b ut abl e to th e p at ern ali st i c l ead ersh i p i n th e Co n fu ci an mo d e (Pel l egri n i an d S can d u ra 2 00 8 ). Ho we ver i n vi ew o f mo d ern Wes t ern -b as ed man age men t co n cep t , th is p at ern ali st i c s t yl e o f l ead ers hi p i n C on fu ci an t each i n g is i n creas in gl y u n d er t h e ch all en ge fo r mo re freed o m an d i n di vi d u al is ti c app ro ach
(P i -C hi Han 2 00 8 ) .
Th e s u rve y co n d u ct ed b y Pi st ru i et al . o n t h e l evel o f fami l y me mb ers i n b u si n ess es s h o wed t h at 6 0 % o f t h e s amp l es h ad at l eas t o n e fami l y me mb er emp l o yed fu l l t i me i n t h e ent erp ri s e and it app eared t h at fami l i es p ro vi d ed vi t al s o u rces o f fi n an ci al s u pp o rt an d h u man res o u rces in th e ent rep ren eu ri al -led s mal l an d med i u m-s i zed en t erp ri s es (P is t rui et al ). Th e fi nd in gs b y Li n d a Yu eh (2 0 0 9 ) al s o i nd i cat ed th at o n e o f th e reas on s fo r a C hi n es e en t rep ren eu r t o s t art h i s o wn b u si n ess was to jo i n in wi t h rel ati ves an d k no wi n g o th ers wh o wo ul d al s o en t er i n to ent rep ren eu rs hi p .
2 . 4 . M an agemen t s t yl e
Th e s u rve ys co n d u ct ed b y C h en et al. (20 0 6 ) s ho wed t h at th e maj o ri t y o f b u si n ess es t abl i sh men t s st art ed b y p ri vat e en t rep ren eu rs i n Ch i n a were i n th e fo rm l i mi t ed l i abi li t y st atu s . In man y cas es , t h e o wn ers o f t h e co mp an i es were al so in vo l ved i n t h e man age men t mat t ers wi t ho u t h avi n g t o po s s es s a fu ll y fu n ct i on in g b oard o f d i rect o rs . As a res ul t , co rp o rat e go vern an ce ma y n o t b e co mp at i bl e to th e t ru e s en s e o f th e co n cep t as p ract i s ed b y th e West ern co mp an i es.
Op d eb eeck an d Hab is ch (20 1 1 ) ex ami n ed th e el emen t o f co mp as si o n o f bu s in es s en t it i es in C hi n es e an d West ern co rp o rat i o n s. Th ey ack n o wl ed ge d t h at whi l st t h e
C hi n es e en ti ti es cou ld b e i n fl u en ced b y t radi ti on al val u e s ys t em, t h e y al so n ot ed t h at a co mp as s i on at e man age men t c o u l d gen erat e t rus t wh i ch resu lt ed i n h i gh er accep t an ce o f d is ci pl in ary ru l es an d i d ent i fi cati o n wi t h t h e co mp an y (Ip , 2 0 0 3, ci t ed i n Op d eb eeck an d Hab i s ch, 20 1 1 ). Ho we ver, Op d eb eeck an d Hab is ch (2 01 1 ) argu ed t h at co mp as s i on was n ot on l y fou n d i n Co n fu ci u s co n cept b u t it als o res o n at ed wi t h Ch ris ti an no ti o n o f co mp as s i o n an d t h e Wes t ern ph il o so p hi cal t h ou gh t s o n econ o mi c an d s o ci al d evel o p men t s .
Li an d C h en (2 0 14 ) ou tl in ed t h e di s ad van t ages o f C hi n es e fami l y b us i n ess es . Th ey o p io n ed t h at mo re o ft en t h an n au gh t, th e ent rep ren eu rs i n C hi n es e fami l y b u si n ess es ado pt ed bli n d o b edi an ce t o t h e p at ri ach s i n fami l y fi rms wh i ch l e d t o mak i n g d eci s i on s i n i rrati o n al man n er. R el u ct an ce in abs o rbi n g ex t ern al cap i t al , t h e o wn ers ’ d esi res t o ret ai n ab so l ut e con t ro l s o f t h e fami l y co mp an i es co mp ro mi s ed t h e o pp o rtu ni ti es o f fu rt h er bu si n ess d evel o p men t an d up grad i n g.
Th ere was a s t ro n g in cl in ati o n to ass o ci at e th e bu s in ess wi t h t h e fo un d er

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en t rep ren eu r an d t h e rep u rcus si o n o f repl aci n g t h e fou n d er mi gh t ren d er th e co mp an y t o o p erat e ab n o rmal l y. In t hi s i n st an ce, t h e fo un d er was th e co mp an y an d th e co mp an y was t h e fo un d er. Th e fou nd er en t rep ren eu r b ecame an i n s ep arab l e p art o f th e in t an gib l e as s et o f t h e co mp an y d u e t o h is o r h er en t rep ren eu ri al acco mp l i s h men t s an d t ru st . Su cces o r p l ann in g b ecame an i s su e an d co rpo rat e go vern an ce was i n ad eq u at e.
2 . 5 . In t ern at i on al en t rep ren eu r s hi p
Li S h en (2 01 2 ) ex ami n ed t h e s u ccess facto rs fo r Ch i n es e ent rep ren eu rs ven t u ri n g o vers eas b y referri n g t o t h e cas es i n Afri ca. In h i s st u di es , Li Sh en fo u nd t h at 8 0 p ercen t o f all C h in es e co mp an i es in Afri ca were p ri vat e en t erp ri s es run by s mal l an d me d i u m-s i zed an d i n di vi d u al i n ves t o rs . Li Sh en (20 1 2 ) att ri bu t ed th e s u ccess fact o rs o f th es e p ri vat e en t erp ris es t o t h e s t ro n g Ch in es e ent rep ren eu ri al s p i ri t, ri s k t aki n g an d p o werfu l wo rk et hi cs u n d er t h e s up p o rt o f Ch i n es e go vern men t t o i n ves t i n Afri ca. Li Sh en (20 1 2 ) al so po st u l at ed t h at th e reas on C hi n es e en t erp ris es were mo re s u cces s ful t h an t h e Wes t ern co mp an i es wh o were th e fo rmer co l o n i al mas t ers o f Afri ca was d u e t o t h e si mi l ari t y in bu s in es s va l u es b et ween C hi n a an d Afri ca wh ere rel ati o ns hi p an d m u t u al t rus t were co n s id ered to b e ver y i mp o rt an t an d wh ere co rru p ti on p racti ces mad e i t eas y fo r C hi n ese fi rms t o ent er mark et (Cl aas s en et al . , 2 01 1 , cit ed i n Li S h en , 20 1 2 ).
J an s so n an d S öd erman (2 0 1 2 ) l o ok ed at t h e p ro ces s o f i n t ern ati o n al i zati on o f
C hi n es e p ri vat el y o wn ed en t erp ri s es an d co n cl u d ed th e in t ern at io n ali zatio n to o k p l ace th ro u gh fi rms o f es t ab li s h ed rel at io n sh i ps wi th p art i es in fo rei gn mark et s .
Th i s rel at i on s hi p k no wn as gu a n xi wh i ch was b as i cal l y th e co re o f th e i n t ern at io n al i zati on p ro ces s an d t h e b u il d -u p o f k no wl ed ge wh i ch to o k p lace t h ro u gh an in creas ed n et wo rk o f ex p eri en ti al k no wl ed ge. Th e as s u mp t i on p o in t ed t o t h e p remi s e t h at t h e mo re rel at i on s hi ps to b e d evel o p ed in a fo rei gn cou n t ry, t h e mo re es t abl is h ed an d i nt ern ati o n al l y exp eri en ced t h e fi rm b ecame an d creat i n g a h i gh er d egree o f i n t ern ati o n al i zati on .
On th e ot h er h an d , Nin g an d S ut h erl an d (2 0 12 ) in ves t i gat ed t h e mo t i ves f o r
C hi n es e p ri vat e co mp an i es t o s et u p o vers eas h o ld in g co mp an y o r o ffs h o re en t it i es . On e o f t h e reas o ns fo r t h e o ffsh o re di rect i n ves t men t u n d ert ak en b y
C hi n es e p ri vat e co mp an i es was t o b yp as s d o mes t i c capi t al mark et co ns t rai n ts and i n st it ut i on al o r regu l at o ry l i mi t ati on s . Bo th st at e -o wn ed en t erp ri s es an d pri vat e en t erp ris es h ad d i fferent l evel s o f mo t i vat i o ns to b e affi li at ed wi t h fo rei gn o ffs h o re en ti t y p ro gra mme t o ach i eve o ffs h o re di rect i n ves t men t an d o n wa rd j o u rn eyin g o b j ect i ves . Ni n g and S u th erl and (20 1 0 ) fu rth er ex pl o red th e mo t i ves fo r s u ch mo ve i n t h e as p ects o f st rat egi c ass et s eek in g mo t i vat i o ns , mark et s eek i n g mo t i vat i o n s, n at u ral res ou rce s eeki n g mo t i vat i o n s , effi ci en cy s eek i n g mo t i vat i o n s, sp eci al o wn ers hi p ad van t ages an d s eek in g b u si n ess n et wo rk s an d gl o b al p ro du ct io n ch ai ns .
Yeu n g et al. (20 1 1 ) ex ami n ed th e read in es s an d t h e l evel o f co n fe ren ce o f h o me gro wn C h i n es e p ri vat e en t rep ren eu ri al co mp an i es go i n g fo r gl ob al reach. A s u rvey was o rgan i s ed and th e fin di n gs in di cat ed t h at mo s t o f th e co mp an i es were h i gh l y co n fi d en t i n t h e t h ei r cap abi li ti es o f gl ob al l ead ersh i p, gl o b al mi n d s et and gl o b al o rgan i s ati o n al st ru ct u re. Ho we ver, Yeu n g et al . n ot ed t h at b efo re th es e co mp an i es co u l d co mmen ce gl o b al o p erat i on s , th ere were t h ree areas o f co n cerns n eed ed to s h o w i mp ro ve men t s : t h e creati o n o f an ex cell ent b rand i ma ge an d t h e mi n i mi s at i o n o f ad vers e effect fro m t h e p ercep ti on o f t h e “M ad e i n C hi n a” l ab el; ret en ti o n, cul ti vat i o n an d mo t i vat i o n o f a p oo l o f gl o b al t al ent ; fo st erin g t h e ki nd o f u ni vers al an d in cl us i ve co rp o rat e cu lt u re wh i ch is b a s ed on p erfo rman ce an d me ri t o cracy; u ti li si n g th e t al ent s effi ci ent l y an d effect i vel y b y h a vi n g d eci s io n mak i n g b et ween t h e b al an ce o f cent rali s ed an d d ecen t ral is ed p o wer s t ru ctu res .

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2 . 6 . F en g s hu i an d s u p ers ti ti o us b el i efs
F en g s hu i i s an an ci ent art an d b eli ef o f geo man cy wh i ch is p ract is ed b y C hi n es e co mmu n i t y i n bu s in ess es and p ers o n al li ves wi t h regard s to th e p ri n cip l es o f h armo n i s i n g en vi ro n men t wi t h hu man l i vi n g co n d it i on s . Th e b eli ef in feng s h u i re mai n s an i mp o rt an t p art o f C hi n es e b us in es s co mmu n i t i es (Ts an g, 2 00 4) as it i s co n s id ered t o b e a gu id an ce to weal t h s eek ers, i mp ro vi n g l u ck an d fo rtu ne.
Al t h o u gh fen g sh ui an d ot h er fo rms o f s u p ers ti ti o ns were h eavi l y s u p p ress ed d u ri n g t h e co mmu n i s t rul e, t h e res t ri ct io ns h ave grad u al l y b een lo o s en ed s i n c e t h e o p en in g u p o f th e eco no my i n t h e 19 8 0 ’s . Wi th t h e i n flu x o f fo rei gn i n ves t o rs fro m o vers eas C h i n es e co mp an i es , fen g s hu i an d s u p ers it io n s s eem t o h ave t ak en ro o t agai n in Ch in a (Ts an g, 2 00 4 ).
Des p it e nu mero u s b oo k s an d art i cl es h ave b een p u b li sh ed a bo u t fen g s hu i an d i ts ap p li cat io n s, t h ere are few res earch es on t h e i mp l i cat io n s an d ap pl i cati ons o f fen g s h ui in rel at io n t o b u si n es s es an d en t rep ren eu rsh i p. Ts an g (2 0 04 ) att emp t ed t o ex ami n e t h e rel at i on s hi p b et ween su p erst it io n and bu si n ess d eci si o n -mak in g i n t h e
C hi n es e co n t ex t i n t erms o f th e rol es i n h el pi n g bu si n ess men an d man age rs to co p e wi t h u n cert ai nt y an d t o wh i ch p rob l ems o f s u p erst iti o ns aro s e wh en d eci si o ns were i n t egrat ed wi t h s u p ers ti ti o ns . Ts an g fou n d t h at C hi n es e b u si n ess men an d man agers t en d ed to reso rt t o s up ers ti ti on s o n l y wh en t h ey h ad t o mak e h i gh l y i mp o rt an t st rat egi c d eci si o ns . He als o fou n d th at s u p ers ti ti on s and d eci si o n mak i n g t en d ed t o s ho w a co mp l e men t ary rel at i on s hi p as su p erst it i on s s erved t o fi ll t h e vo i d o f t h e u n kn o wn an d to red u ce an xi et y, acco rdi n g t o
M al in o ws ki ’s t h eo ry. In ot h er wo rd s, su p erst it io n s co ul d b e us ed as a st res s man a ge men t st rat egy.
Ho b s o n (1 9 94 ) st u di ed t h e i mp act o f fen g sh u i o n th e h os pi t al it y i n du st ry i n Ho n g
Ko n g. Ho b s o n no t ed t h at fen g sh ui l ai d o ut th e mo s t fun d amen t al an d u nderl yi n g p ri n ci p l es o f fit ti n g h u man d evel o p men t wi t h t h e s u rrou n di n g ph ys i cal en vi ro n men t . In o rd er t o do t h is , o n e h ad t o es t abl is h go od fen g sh u i wi t h h is s u rro un di n g b y creat i n g t h e b al an ce b et ween t h e yin (n egat i ve fo rce) a n d t h e yan g
(t h e po si ti ve fo rce) an d t o t ap t h e eart h ’s ch i (li fe o r fo rce) wh i ch i s t h e d et ermi n i n g fo rce fo r al l li fe to flo u ri s h. Th e s ame p ri n cip l es can b e ap pli ed t o o ffi ce s et ti n gs , fact o ry l ayo u ts , t h e t i mi n g o f ceremo n i es et c. F en g s hu i ma y b e regard ed as a s up erst it i on i n t h e West ern s t an d ard b ecau s e fen g s h ui i s p res en t ed as a geo man c y wi t h o u t s ci en ti fi c p ro o f. Ho we ver, fen g s h u i h as b een a cul t u re p ecu l i ar t o Ch in es e s o ci et i es fo r a few th o us an d years an d i ts p ri n cip l es ha ve b een i n grai n ed i n t h e p s ych e and cul t u re o f man y As i an co u nt ri es.
P o ul st on an d B en n ett (20 1 2 ) eval u at ed a su rve y o n ei gh t ho t el s t o li n k t he rel at io n sh ip o f fen g s h ui p ract i ces to su cces s o r fail u re o f th e ho t el s . Th ei r fi n di n gs con cl ud ed t h at th ere were s i mi l ari ti es b et ween t h e rep o rt ed cas es o f s u cces s o f ho t el and fen g s hu i i n si x o u t o f t h e ei gh t cas es bu t t h ey n ot ed t h at t h ere were i n su ffi ci en t evi d en ce t o d et ermi n e t h e ex i st en ce o f a fi rm rel at i o ns h ip b et ween act u al s u ccess and fen g sh u i. Ho we ver, P o u ls to n and B en n et t ack n o wl ed ged t h at t h ere was cl ear evi d en ce o f go o d fen g s hu i t o b e ass o ci at ed wi t h feeli n gs o f s u ccess . Th ey al so fou n d t h at t h ere was n o evi d en ce t o su gges t t h at fen g s h ui was us ed t o i mp ro ve p ro fi t abil it y an d th e no ti o n o f s u cces s o f h o t el s i n as s o ci ati o n wi t h t h e p racti ce o f fen g s h ui con cern ed mo re o n t h e d es i gn feat u res and mark et i n g th an wi th lu ck and su p erst it io ns .
Li C h an g (20 0 9 ) ex pl o red t h ree cas es o f co rpo rat e repu t at i on in rel at io n to u si n g fen g s h u i in th e d esi gn o f co rp o rat e h eadq u art ers . Th e cas es in vo l ved arch i t ectu ral d esi gn s in t h e i n t eri o r an d ext erio r o f t h e co rp o rat e bu il d in gs in
Ho n g Ko n g an d Tai wan wh i ch were b el i eved t o h ave accu mu l at ed go o d ch i
(en ergy fo rces ) an d i n tu rn p ro mo t ed th e rep ut ati o n th e b ui ld in gs as h armo n io u s an d p ros p erou s o ut l oo ks . Wi th go o d fen g s h ui , t h es e b ui ld in gs were u s ed as ma rk et i n g to o ls t o co mmu n i cat e an d p ro j ect co rpo rat e p res ti ge s u ch as s t ren gt h an d st abi li t y t o Ch in es e cus to mers .

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2 . 7 . S t rat egy
S o me man age men t an d b u si n es s s t rat egi es wh i ch are wi d el y k no wn i n t h e Wes t ma y n o t b e app li cab l e o r ado p t ed b y C h in es e en t rep ren eu rs . Wan g an d C han g
(2 0 0 9 ) p os t ul at ed th at M i ch ael P o rt er’s Th eo ry o f Fi ve F o rces h ad n o i mp act o n
C hi n es e en t rep ren eu rs . Th e s u rvey b y Wan g an d C h an g (2 00 9 ) on ent rep ren eu rs wh o h ad no p ri o r k n o wl ed ge o r u s e o f th e th eo ry i nd i cat ed t h at t h e en t repren eu rs d i d n ot emp l o y o r ap pl y t h e t h eo ry as a st rat egy co n c ep t o r t o ol . In st ead , o n e o f t h es e C hi n es e s eri al ent rep ren eu rs u s ed t h e co n cept o f 3P ’s wh i ch was app l i cabl e an d un i qu e to th e bu si n ess en vi ro n men t i n C hi n a. Th e 3P s s t and fo r P eo ple ( r en ),
P roj ect (s h i ) an d P en n y ( q ia n ) and t h ey act ed as th e st rat egi c fo rces d ri vi n g h i s ven t u res in C hi n a. In t h e i n t erp ret ati on o f 3P s , P eo p l e i s referred to t h e art o f d eal i n g wi th p eop l e t o s ecu re s u pp o rt an d h elp ; P ro j ect is th e s en s e o f o pp o rt un it y wh en i t i s read y; P en n y refers t o con t ro l o f cash flo ws .
Li et al . (2 00 6 ) ex ami n ed t h e rel evan ce o f co mp et i t i ve ad van t age t h eo ry d evel o p ed b y M i ch ael P o rt er o n t h e ru ral en t rep ren eu rsh ip man aged b y t h e t o wn an d vi l l age en t erp ri s es i n a few C hi n es e t o wn s. Th e co n cl u si o n b y Li et al . (20 0 6 ) ap p aren tl y agreed wi t h th e th eo ry t h at th e to wn an d vi l l age en t erp ri s es used
P o rt er’s cos t l ead ersh ip st rat egy i n achi evi n g t h ei r co mp et it i ve ad van t age s o ver t h ei r co mp et i t o rs wh o were t h e en t rep ren eu rs i n t h e cit i es . It ap p eared t hat th e t o wn an d vi l l age en t erp ris es h ad t h e i n h erent l o w co st ad van t ages l i k e l ow-co s t l ab o u r, lo w-co s t p ro du cti o n b as e an d i n frast ru ct u re (bu il di n g, el ect ri cit y an d wat er) an d t h e co mp et i ti ve ad van t ages au g men t ed wel l wi th l ab o u r -i nt en si ve i n du s t ri es s u ch as s h o es , t o ys , cl ot h es, foo d p ro ces si n g an d p rod u cts wh ich d id n o t req ui re b rand n ames (gen eri c p ro du ct s ) o r q u ali t y. C o mp et it io n i n ch eap er p ri cin g was t h e mai n co st st rat egy fo r th es e ent rep ren eu rs i n ru ral areas. Wi t h p o o r co mmu n i cat i o n an d u nd evel o p ed t ran sp o rt ati o n s ys t ems , it was di fficu l t fo r o t h er l o w co st co mp et it o rs t o co mp et e i n t h e ru ral areas and t erri to ri es wh ere t h e t o wn an d vi l l age en t erp ris es fl o u ri sh ed .
2 . 8 . E d u cati o n
C h en et al . (20 06 ) n ot ed fro m t h e s u rvey o n t h e l evel o f ed u cati o n o f C hin es e en t rep ren eu rs and th ey fo u nd th at i n t h e earl y s t ages o f e n t rep ren eu ri al d evel o p men t i n C hi n a, mo s t o f t h e Ch i n es e ent rep ren eu rs h ad o nl y u p t o ju n io r h i gh s cho ol l evel d u e t o t h e ru ral b ack gro u n d. Ho we ver t h e ed u cat io n l evel b ecame h i gh er fro m t h e s u rveys i n 1 99 3 t o 2 00 4 wh i ch s ho wed mark ed i mp ro ve men t fro m h i gh er s ch o o l l evel t o un i vers i t y fi rst d egree l evel . Th e d at a wo u l d als o mean t h at eli t e cl ass o f en t rep ren eu rs was gro wi n g an d emer gi n g an d t h is t ren d co u ld b eco me mo re es t ab l is h ed an d s us t ai n abl e in t h e fut u re.
Dj an ko v et al . (2 00 6 ) mad e a co mp ar i s o n i n ed u cat i on b et ween C hi n es e an d
R u ss i an ent rep ren eu rs an d th e fin d in gs co n cl u d ed th at t h e Ru s si an en t repren eu rs t en d ed t o b e h i gh er achi evers i n s ch oo l t h an th e C h in es e cou nt erp arts .
2 . 9 . M o ti vat i o n
P is t ru i et al. con d u ct ed s u rve y o n t h e mo t i ves fo r C hi n es e en t rep ren eu rs to en gage i n bu si n ess and th e d at a su gges t ed t h at t h e C hi n es e en t rep ren eu rs were mo t i vat ed b y t h e n eed fo r p ers on al achi eve men t an d t h e d esi re to mak e a d i rect co ntri b ut io n t o t h e s u cces s es o f en t erp ri s es . F ami l y s ecu rit y was an o th er i mp o rt ant fact o r.
Ot h er facto rs i n cl u d ed th e d es i re t o co n ti nu e l earni n g an d t o fo st er fami ly wel l b ei n g an d t h e fact o rs s eemed t o au g men t wel l wi t h t h e Ch in es e val u e s ys tem an d t h e C o n fu ci ani s m d o ct ri n e wh i ch en cou raged d il i gen ce an d co nt in u ou s s el f i mp ro ve men t an d t h ey ap p eared to h ave an i mp act o n t h e reaso n s an d mo ti ves o f b ei n g en t rep ren eu rs.
On th e ot h er h an d , Li n d a Yu eh (2 0 09 ) q u es ti o n ed th e resp o nd en ts i n t h e su rve y ab o u t th e reas on fo r s t art in g a b u si n es s . A s i gn i fi can t n u mb er o f res po n den t s men t i o n e d t h e reaso n s li k e h avi n g t h e requ is it e sk il ls an d ex p eri en ce, h ad o wn

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fu n d o r real es t at e an d j oi ni n g wi t h rel ati ves i n bu s in ess . Th e l as t reas o n s eemed t o b e i mp o rt ant as s t art in g a b us i n es s wit h fami l y co u ld h el p i n fi n an ces an d als o g u a n xi i n s o ci al n et wo rk s i n fo st eri n g ent rep ren eu rs hi p .
C h en et al . (20 06 ) t es t ed t h e p us h fact o rs an d t h e p ul l fact o rs fo r b ei n g en t rep ren eu rs i n C hi n a. Th e p u sh facto rs were u n emp l o ymen t , d i s agreeme n t wi th man a ge men t , “mi s fi t ” i n co mp an i es and l ack o f career ch o i ces wh i ls t t h e p u ll fact o rs i n cl u d ed n eeds fo r i nd ep en d en ce, achi eve men t an d reco gni ti o n , p ers o n al d evel o p men t an d weal t h creat io n . Th e n eed fo r ach i eve men t an d p ers o n al d evel o p men t were t h e mai n mo t i ves t o b eco me p ri vat e en t rep ren eu rs wh ils t o t h er mo t i ves s u ch as u n emp l o ymen t an d jo b i ns ecu rit y were i mp o rt an t in t h e su rve y i n
1 9 9 3 b ut t h ey d ecli n ed i n i mp o rt an ce o ver t i me i n th e su rve y i n 2 00 2 .
2 . 1 0. P ol it i cal p arti cip ati o n
C h en et al . (20 08 ) st u di ed t h e d et ermi n an ts o f p ol it i cal p arti cip ati o n o f pri vat e en t rep ren eu rs fro m Li u zh o u an d t h e s u rvey res u l t s i n f erred t h at ent rep reneu rs wh o were o l d er o r fro m l arger o l d er en t erp ri s es h ad b et t er ch an ces t o b eco me me mb ers o f t h e P eo p l e’s C o n gres s an d t h e Ch i n es e P eo pl e’s P ol it i cal C o ns ul t at i ve
C o n feren ce. On t h e o th er h and , t h e en t rep ren eu rs wh o were me mb ers o f th e
C o mmu n i s t P art y o f C hi n a h ad a hi gh er p rob ab il it y t o en t er p ol it i cs . C h en et al .
(2 0 0 8 ) co n cl u d ed th at p ri vat e en t rep ren eu rs i n C hi n a were u si n g t h ei r econ o mi c p o wer, p o li ti cal i d en ti t y an d t h ei r p aren t al b ack gro u nd t o gai n l evera ge i n p ol it i cal as p ect . Th i s co n clu si o n i s al so s u pp o rt ed b y th e fin d in gs co nd u ct ed b y Li et al.
(2 0 0 8 ) b y u si n g a n at i on wi d e su rve y. Li et al . (2 00 8 ) fou n d th at p art y me mb ers h i p o f p ri vat e en t rep ren eu rs h ad a p o si ti ve i mp act o n t h e p erfo rman ce o f t h eir fi rms , eas i er acces s t o o bt a in i n g l o ans fro m b an k s o r s t at e in s ti tu ti o ns and mo re co n fi d en ce o r p ro t ect io n i n t h e l egal s ys t em.
Gu i h eu x (2 0 06 ) ex ami n ed th e mo t i ves o f t ho s e ent rep ren eu rs p art i ci p at i ng i n p o li ti cs at th e lo cal l evel . He fo u n d t h e mo t i ves were vari o u s , ran gi n g from s el fi n t eres t an d s el f -p res ervat i o n t o s o ci al cau s es. Gu i h eu x (20 0 8 ) cau ti on ed t h at t h e ri s k fro m t h e p ol it i cal p art i ci p ati on o f t h es e p ri vat e en t rep ren eu rs co ul d creat e p ers o n al rel at io n sh ip s wh i ch wo u l d b e d evel o p ed i nt o a p at ro n and cli ent s ys t em i n wh i ch favo u rs an d p ro t ecti on were ex ch an ged fo r s u pp o rt an d l o yalt y.
3 . Di s cu ss i on
S in ce th e i mp l emen t at i on o f s o ci al is t mark et eco n o mi c s ys t em was u n d ertak en , t h ere was an emer gen ce o f en t rep ren eu ri al gen res i n Ch in a . As C h en (2 0 06 ) no ted t h at at t h e end o f 2 0 01 , t h ere were ab o ut 2. 4 mi ll i on s mal l and med i u m -s i zed en terp ri s es
(S ME ) in C h in a and th ey acco u n t ed fo r ab o ut 99 p ercent o f all regi st ered en t it i es .
Th es e S ME s creat ed j o bs an d eco no mi c gro wt h , ex p an d ed ex po rt s an d p romo t ed i n no vat i o n s i n s ci en ce an d t ech no l o gy. Th e co n cept o f “p ri vat e en t rep reneu rs ” t ak es a u n iq u e i n t erp ret ati on in th e C h in es e co n t ex t . E nt rep ren eu rs are co mmo n l y d efi n ed as p ers o ns wh o t ak e t h e ri s k o f s t arti n g -u p a b us in es s b y u si n g hi s o wn res ou rces an d t h erefo re, b u si n es s es are p ri vat el y -o wn ed . Bu t i n t h e Ch i n es e co nt ext , p rivat el y o wn ed en ti ti es are mai n l y co n fi n ed t o t wo cat ego ri es o f o wn ers hi p s: i n divi d u al h o u s eh o ld s (o r get ih u ) -bu si n ess es emp l o yi n g l ess t h an ei gh t emp l o yees an d p ri vat e en t erp ris es wh i ch emp l o yed mo re t h an ei ght emp l o yees (C h en et al . , 2 00 6) .
Hi s t o ri cal l y, ent rep ren eu rs hi p was no t en co u raged i n C hi n es e s o ci et y an d t h erefo re, t h ere were few i n s ti tu ti o n al su p po rt fro m t h e st at e. Th e i d eol o gi cal emp has i s o n co l l ect i ve o wn ers h i p b y t h e s t at e an d t h e C hi n es e C o mmu n i s t P art y rep res en t ed th e i n t eres t s o f t h e wo rki n g cl ass b y th e l egit i mat e u s e o f hi erarch i cal co nt rol o f t h e o rgan i s ati o n. Th e emer gen ce o f p ri vat e en t rep ren eu rs was th e co ns eq u en ce o f th e o p en in g u p o f th e eco no my t o fo rei gn in ves t o rs in th e n ame o f s o ci ali s t mark et eco n o my s i n ce 1 9 80 ’s . St at e co nt ro ls o r cen t ral pl an ni n g grad u all y ga ve wa y t o p ri vat e en t erp ris es as s u ch a s ys t em wo u l d b e ch aract eri s ed b y in creas ed co mp et i t i on an d th e repl acemen t o f s t at e o wn ers hi p wi t h p ri vat e o wn ers h i p (Z ap al s k a et al ., 20 0 1 ).

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Th e t rad i ti on al val u e s ys t em s u ch as C o n fu ci ani s m, cu lt u ral b eli ef in feng s h u i an d t h e p referen ce fo r gu a n xi are di st in cti vel y C h i n es e i n ch aract er an d th ey h ave, t o s o me ex t en t , p l ayed a ro l e i n t h e i d eo l o gi cal an d b eli ef s yst em o f C hi n ese en t rep ren eu rs . Th us , t h e d eep l y in grai n ed cul tu ral n o rms h ave i n a way i n h i bi t ed th e ap p li cab il it y o f West ern -st yl e o f man age men t as co mp ared t o t h e p at ern ali s ti c l ead ers hi p s t yl e o f man age men t (Po u t zi ou ri s et al . , 2 00 2 ). T h e C hi n es e bu s in es s es are t yp i cal l y ext en si on s o f th e fou n d er an d t h e p o wer o f cent ral is ati o n is hi gh l y h i erarch i cal wh ereb y n ep ot i s m i s p reval en t i n t h e o rgan i s at io n an d t h e con t rol and o wn ers h i p i s hi gh l y co n cent rat ed i n t h e h and s o f th e fami l y me mb ers . C hin es e b u si n ess su cces s i s th erefo re d ep en d ent on th e in fo rmal n et wo rk s o r con nect i o ns b as ed o n ki ns h ip and th e n eed t o k eep t h e o wn ers h ip and co nt rol i n t h e fami l y.
4 . Co n cl us io n
S in ce th e o p en i n g o f t h e eco n o my i n th e 19 8 0 ’s , C hi n a h as achi eved reco mmen d a b l e eco n o mi c gro wt h . Al t h o u gh t h e co u nt ry s ti ll remai n s as co mmu n i s t -ru l ed b u t t h e p o li ci es ad op t ed i n recen t ti mes are refl ect i ve o f t h e ch aract eri st i cs o f a ma rk et eco n o my. Th e go vern men t o f Ch i n a t erms t h e b ran d o f t h e econ o my as s o ci al is t ma rk et eco n o my wh i ch h ave “u n i q u el y Ch i n es e ch aract eri st i cs ”. C o nt rast wi t h th e p eri o d p rio r t o econ o mi c refo rm, C h i n a ex p eri en ced t h e C ul tu ral R evo l u t io n wh i ch vi rt u al l y s aw t h e st agn at io n o f bu s in ess es and ent rep ren eu rs hi p i n t h e 1 97 0 ’s . Th e s u p p res si o n o f i d eas , fre ed o m o f ex p res s io n , in t ell ectu al d evel o p men t , inn o vat i o n an d en t rep ren eu rs hi p and op p os it io n t o everyt h i n g ab o ut th e West , was a p o li ti cal man o eu vre ai med at co n s ol id ati n g t h e l egi ti macy o f t h e Ch i n es e C o mmu n i s t P art y.
Al t h o u gh t h is p ap er is mai n l y d es c ri b in g t h e ch aract eris ti cs and att rib ut es o f en t rep ren eu rs i n t h e P eop l e’s R ep u bl i c o f C hi n a, i t is als o p ro b abl e t h at th e Ch i n es e en t rep ren eu rs i n o t h er co u nt ri es mai n t ain th e si mi l ar t rait s an d cu lt u ral val u es . It ap p ears t h at t h es e ch aract eri st i cs an d a t t ri bu t es co nt rib u t e t o th e eco no mi c s u cces s o f t h es e o vers eas C h in es e i n t h ei r res p ect i ve co u n t ri es . Th e C on fu ci an val u e s ys t ems , e ven t h o u gh t h ey ma y b e s een as o ut d at ed b y We st ern s t and ard s, remai n th e mo ral fo rce an d i n fl u en ce on t h e b eh avi o u r o f C h in e s e en t rep ren eu rs . Co mb i n ed wi t h ot h er cu l tu ral t rait s s u ch as fen g sh ui in d eci si o n mak i n g an d co rpo rat e s et ti n gs, Ch i n es e en t rep ren eu rs di sp l ay t h e fl exi bi li t y an d agi l it y i n d eali n g wi t h si t u at io n s.
Th e C h in e s e ent rep ren eu rs t en d t o ap p reci at e t h e i mp o rt an ce o f fami l y and fami l y val u es as s o u rces o f fi n an ci al as si st an ce and p art i cip ati ve s u p p o rt. Th e t ru s t i n fami l y me mb ers wh o fo rm t h e n u cl ei p ro vi d i n g t h e p o ol o f p ros p ecti ve can d i d at es fo r s u cces so r pl an ni n g an d t h e accep t an ce o f gu a n xi as a way t o o p eni n g up bu s in es s o p p o rt u nit i es an d s o ci al n et wo rk in g are cl earl y d is ti n ct i vel y d i fferen t from en t rep ren eu rs i n o t h er co u nt ri es .
Wi t h t h e i n creas i n g so p hi st i cat io n i n b u si n ess en vi ro n men t an d ed u cati o n, Ch i n es e en t rep ren eu rs are abl e t o exp an d t h ei r bu si n ess ho ri zon s b eyo n d t h e C hi nes e s ho res .
Th ey are p art i cu l arl y p ro mi n en t i n t h e Afri can co n ti n en t wh ere C h in es e pri vat e co mp an i es en gage i n t h e d o mes t i c n ati o n al eco no my i n an ex t en si ve man n er. Th e n at u re o f ris k s eek in g an d s t rat egi c as s et acq ui si ti o n en abl e th e Ch in es e en t rep ren eu rs t o man age an d i nt ern ati o n al i ze t h ei r bu s in es s es t o t h e l evel o f co mp et i t i ve ad van t age co mp arab l e t o t h ei r Wes t ern co un t erp art s al th o u gh at a l ess er s cal es o f un d ert aki n g.
Wi t h mo re o p en i n g up o f t h e eco n o my, C hi n es e en t rep ren eu rs wil l b e gi ven mo re o p p o rt u nit i es t o man ag e an d o wn i n t ern at io n al b us in es s es t o t h e s t age wh ere t h ei r co mp an i es wi l l b e l ab ell ed as mu l t in at io n al co rpo rati o ns in t h ei r t ru e s ens e i n th e fu t u re.

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