Most savvy China watchers know that in today’s China, the top-down governance system depends on entrepreneurship within its state-owned enterprises (SOEs) to grow its economy. As the United States struggles to turn its flagging economy around, it, too, is looking to entrepreneurs to lead the way.
What makes a successful entrepreneur? In his July 7, 2009 article, “Anatomy of an Entrepreneur: Family Background and Motivation,” published by the Kauffman Foundation Small Research Projects Research, Vivek Wadhwa concludes that most new company founders in America came from middle-class or upper-lower-class backgrounds, are well-educated and married with children. The strongest motivation for starting a company was to “build wealth”. Other popular motivators included capitalizing on a business idea; the appeal of a startup culture; a desire to own a company; and a lack of interest in working for someone else. From what we see in today’s China, these are the very same motivators for young Chinese all over the nation.
That’s what makes these times so extraordinary and so exciting for venture capital investors. With the prospect of Yuan convertibility around the corner, the opportunities for bilateral investment in start-up enterprises in both countries will be a much-needed shot in the arm for global economic recovery. Watch for it…it’s coming.
Tags: America, China, Economic Recovery, Entrepreneurs, Innovators, Venture Capital
