Entrepreneurship has been central to China's transformation into the world's second largest economy since the country's reform and opening-up. Today, the entrepreneurial landscape is undergoing significant change. A new generation of entrepreneurs-shaped more by market dynamics than the legacy of central planning-is taking the lead. Early ventures have grown into national champions, now grappling with complexityand the risk of complacency. Meanwhile, a stronger state presence and global headwinds have reshaped the policy and business environment. As China confronts demographic shifts and the limits of an export-led growth model, it once again turns to entrepreneurship to drive innovation and avoid the middle-income trap.
This handbook looks at the complex dynamics and changing nature of entrepreneurshipin China. It provides overviews of up-to-date research in four important areas: how Chinese entrepreneurs exercise their ability to seek and seize market opportunitiesin the face of uncertainty; how entrepreneurial firms in China facilitate the continuous leveraging of opportunities; how entrepreneurial ecosystems are evolving to support the entrepreneurial actions of both individuals and organisations; and how entrepreneurship is exercised as an instrument to address pressing societal challenges.
The impact of entrepreneurship on China's rise to become the world's second largest economy after the country started to reform and open itself up to the world over four decades ago is well documented. However, a lot has changed over recent years. Firstly, the first generation of Chinese entrepreneurs has gradually retired. Newer generations of entrepreneurs growing up in the reform era and with weaker imprints of the legacy system of a planned economy have stood up to carry forward the beacon of entrepreneurship. Secondly, many entrepreneurial ventures with humble origins are now established organizations, some of which have grown to become national champions. Such success comes with the challenges of managing complacency, complexity, and sustained competitive advantage. Thirdly, state-owned enterprises, once dubbed 'the dying dinosaurs', have recently made a strong come back in many sectors together with the government's use of a stronger visible hand in managing the economy. The narrative of 'the state enterprises are advancing whilst the private sector is receding' reflects the uncertainty of the policy regime and business environment in the country. And finally, China has been a clear beneficiary of globalization and has performed strongly among low-income countries in terms of catching up with advanced economies.
However, the tide of globalization has recently turned, and sustainable development goals have taken the central stage. In China, a rapidly ageing population and a resource-hungry, export-led growth model has gradually run its course amid the country's effort to avoid the middle-income trap. Once again, China is looking to the ingenuity of its entrepreneurs to find solutions.
In response to all the above-mentioned changes, Chinese entrepreneurs stand the test of time. They have continuously found new ways in seeking both opportunity and advantage. They have contributed to the global economy with ideas of business model innovation in fintech, smart manufacturing, platform-based business, and more. They continue to revitalize themselves to stay in tune with fast-changing business environments, and they are responding to grand societal challenges in earnest. All of this has happened in an entrepreneurial ecosystem that continuously evolves and reshapes itself. The drama of Chinese entrepreneurial action is as fascinating as ever, and the lessons-successful or not-that Chinese firms offer to the country and beyond are of great relevance to those who are following in their footsteps in pursuit of the entrepreneurial dream.
This handbook looks at the complex dynamics and changing nature of entrepreneurship in China. It provides overviews of up-to-date research in four important areas: how Chinese entrepreneurs exercise their ability to seek and seize market opportunities in the face of uncertainty; how entrepreneurial firms in China facilitate the continuous leveraging of opportunities; how entrepreneurial ecosystems are evolving to support the entrepreneurial actions of both individuals and organisations; and how entrepreneurship is exercised as an instrument to address pressing societal challenges.
