China is beating us entrepreneurially because the Chinese just want to get rich more than we do, argues Case Western Reserve University Professor Scott Shane in a piece for BusinessWeek.
China’s rate of self-employed citizens has remained shockingly higher than ours since the numbers became available in 2001: 51.2% versus America’s 7.2%.
And China doesn’t merely have more small business owners than we do, he adds. The Chinese are also more growth-oriented and more willing to make informal investments to fund entrepreneurship than we are.
In spite of greater barriers to doing business and GDP domination by the government sector, China is exploding with entrepreneurs. Why?
Shane thinks it’s the simple cultural desire to make money. “The GEM data reveal that fewer than 40% of Chinese entrepreneurs start businesses to have more independence, and more than 60% start businesses to increase their income. In the U.S., by contrast, only a little more than 40% of entrepreneurs start businesses to increase their income, while almost 60% do so to gain more independence.”
Further, the Chinese are more likely than we are to start a business in the face of high-risk economic or political climates.
Maybe we could learn something from China’s attitude towards starting a business.
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