CHAPTER 3:

ENTREPRENEURSHIP IN
ASIA
 INTRODUCTION

• New market expansion is highly unpredictable and can prove problematic in

unexpected ways. 

• A quick understanding of the requirements of a new market may seem sufficient to go

ahead with a product launch, but failure to meet unknown customer expectations can
prove damaging to a new brand in a new territory
 ASSESSMENT OF ENTREPRENEURSHIP IN
ASIA

According to Forbes, entrepreneurship has become entrenched in

Asia. Advancements in technology and access to information have
changed things dramatically. Asians broadly speaking are more
aware of economic opportunities than ever before. For example, in
the financial technology and big data field especially, opportunities
in Asia far exceed those in the west. With eyes opened, fewer
people are following the traditional path of joining an existing
family firm.
• Budding Asian entrepreneurs face many challenges. Access to capital is difficult, legal
institutions in many Asian countries need to be strengthened to reduce uncertainty for
entrepreneurs and those who fund them. Cultural values often reduce entrepreneurial
aspirations.

• But, things are changing. China’s premier Li Keqiang recently told the World
Economic Forum in Davos that “mass entrepreneurship and innovation” are needed to
avoid a hard economic landing. His government is working to make it easier for people
to start their own businesses.
 ENTREPRENEURSHIP IN JAPAN
• In 2000-2009, Japan recorded one of the lowest rates of entrepreneurial activity amongst
the world’s leading nations.
• Entrepreneurs face many difficulties when starting their own ventures. Some of these
difficulties include receiving loans from banks, the pressures of deflation, weak domestic
demand, and tough competition within the country.
• The lifetime employment (meaning that once you got out of school and started working you
kept that job until you retired) and seniority-based wage system are major factors impeding
Japan from becoming a truly entrepreneurial society.
 SOME FACTORS
INFLUENCE THE LOW RATE
• The start-up rate for new businesses in Japan is the lowest rate among industrialized
countries.
• The White Paper on Small and Medium Enterprises in Japan 2002 argues that the cause
country's transition to a lower rate of economic growth
• the decline in the income ratio between entrepreneurs and salaried workers (i.e., operating
income of a proprietorship versus wage income).
• Stagnating business environment has stamped out many of the opportunities for new
business start-ups
• But the income disparity offers little incentive for a person to leave his job to become an
entrepreneur
• Culture as the only factor, therefore, does not explain the relatively low entrepreneurial
activity in Japan in recent years.
 CULTURAL PRESSURE

• Cultural fear of failure still has a strong influence

• Risk aversion permeates the Japanese society
• Small business failure is not viewed as a learning experience.
• Top graduates see high risks, and not high returns from working at
startups.
• Social pressure from parents is high for work at famous big companies.
• Performance Based System
 ENTREPRENEURSHIP IN JAPAN
• You need to know the language. Expats, aka gaijin, may want to focus on building ICT
options for the global market unless they’ve been in Japan for a long time, and even that is
no guarantee. Best bet is to get a Japanese with experience abroad.
 ENTREPRENEURS AND THE FUTURE OF JAPAN

• Closer ties between university and industry and promotion of Entrepreneurship

• Declining student population (so universities need more external support)
• Tighter corporate RD budgets (so companies need to rely more on university for pre-
competitive research)
• New faculty policies appear to be promoting professor led start-up companies
• Maybe higher operational risk conflict of interest violations
• Lower individual risk
• More student and junior faculty now appearing on patent applications
 CHALLENGES FOR FUTURE ENTREPRENEURS
IN JAPAN
• Educating / managing investors
• Decision making and governance
• Connected with attitudes toward failure
• Market access often poor for any new company (exit strategies)
• Conflicting attitudes towards youth and women
• Somewhat of a common factor in East Asia
• Exclusion of product development people from initial product planning
• Promising entrepreneurs might opt to pursue their business idea outside of Japan
 WHAT’S THE DEFINITION OF
ENTREPRENEURSHIP IN THE CONTEXT OF
CHINA?
Creation and management of the new enterprise,
small businesses and family enterprise
- according to The Academy of Management
 MACRO-ENTREPRENEURSHIP POLICY

• More than 20 million educated youth back to the city and the urban new labor force, huge
employment pressure, the unemployment rate was up to 5.4%

• In 1980, the central government proposed the employment guidelines of the ways and
strategy of employed recommend, organized up employment voluntarily and self-
employment, which impelled the entrepreneurial employment.
 ENTREPRENEURSHIP IN CHINA
• China has emerged as a world economic super power, forcing all players to consider new
economic models. The growing significance of small and medium-sized enterprises
(SMEs) in China’s economy is hard to ignore.
• The Chinese government is providing the “enabling environment” for small and medium-
sized enterprises (SMEs).
• Since China entered the World Trade Organization in 2001, committing itself to further
liberalizing its economy, China has received the most foreign capital inflows of any
nation.
 ENTREPRENEURSHIP IN CHINA
• The Chinese propensity to base business on relationships/help each other, especially with the
Government officials[guanxi], is very critical for the success of entrepreneurs.
• To continue to develop, China’s private companies need, above all, rational banks and a
well-functioning stock market.
• While the entrepreneurial spirit has gained social acceptance over the last two decades, the
odds are still stacked against start-ups in China and they must fight to survive in a very harsh
economic and political environment where the next day is based on Government policy.
Therefore, most Chinese entrepreneurs, including those overseas, tend to emphasize short-
term profits and opportunism instead of long-term strategy.
 TYPES OF ENTREPRENEURIAL EDUCATION IN
CHINA
1. Entrepreneurial education in school
•Entrepreneurial education in primary and middle school
•Entrepreneurial education in colleges

2. Social entrepreneurial training

•SYB project
•Entrepreneurial city
 SYB (START YOUR BUSINESS),
PROJECT
• programs developed by the ILO aim to meet the needs of to cultivating micro (small)
enterprises founders, was promoted in more than 80 countries around the world .

• In 2001, the SYB training technology pilot project implemented by the Ministry of Labor
and Social

• Security and the ILO was introduced in China its value are:
• training the entrepreneurial awareness; measure the starting new business conditions;
training the business plan; form a business plan combing the entrepreneurial ideas with the
systematic knowledge
 NATIONAL ENTREPRENEURIAL
CITY

The entrepreneurial city was proposed by Ministry of human

resources and social security in 2009 aiming to let
entrepreneurship create more job
 THE FEATURES OF ENTREPRENEURIAL CITY

• Excellent job creation

• Perfect entrepreneurial environment
•Numerous entrepreneurial activity
•Significant entrepreneurial ability
•Remarkable entrepreneurial contribution
 FIVE INDICATORS OF CREATING
ENTREPRENEURIAL CITY
1. the universal entrepreneurial activity index
2. the contribution rate of entrepreneurial activity on employment
3. the contribution rate of entrepreneurial activities of business growth
4. the index of entrepreneurial environment
5. the satisfaction rate of the entrepreneurial environment

Till 2012, there are 90 entrepreneurial cites in china.

ENTREPRENEURSHIP IN INDIA
 ENTREPRENEURSHIP IN INDIA
• Indians have entrepreneurial capacity. India and China have followed opposing strategies for
development. While China’s growth has been fueled by the heavy dose of foreign direct
investment, India has followed a much more organic method and has concentrated more on
the development of the institutions that support private enterprise by building a
stronger infrastructure to support it.
• Its corporate and legal systems operate with greater efficiency and transparency than do
China’s. The Government has encouraged entrepreneurship by providing training and
also the facilities to succeed, particularly in the rural areas. One style of innovation that
really works in a country as large and diverse as India, is grassroots innovation: this
includes inventions for a milieu/social environment that is quintessentially/quality
Indian.
 ENTREPRENEURSHIP IN INDIA
• Entrepreneurs can make the best of this by catering to various
demands of this segment. India, with its abundant supply of
talent in IT, management, and R&D, has become the hot bed of
outsourcing of services from all parts of the globe where
companies can reduce their costs, but not their quality [If the
foreign company chooses the right Indian partner].
 ENTREPRENEURSHIP IN
INDONESIA
• The largest economy in Southeast Asia and the world's fourth-largest population -- half of
which is under age 30 -- Indonesia had estimated economic growth of 8 percent in 2011. A
top-10 market for U.S. agricultural products, the country is a thriving democracy with a
trend toward deregulation. However, the regulatory environment remains daunting, and
infrastructure inadequacies can make it expensive to do business.

• It’s promising markets are IT products and services, financial and banking services, clean
energy and education and professional training.
 INNOVATION AND
ENTREPRENEURSHIP IN INDONESIA
 SUGGESTIONS FOR THE FORMULATION OF EFFECTIVE
ENTREPRENEURIAL ACTIVITIES IN INDONESIA:
1. Increasing the state support to SMEs.
2. Development of laws for encouragement of foreign investors.
3. Decreasing the bureaucratic obstacles.
4. Effective struggle against corruption.
5. Development of investment consulting services for companies.
6. Investors should start doing business with short-term investments.
7. To attract foreign investors to the country through organization of exhibitions and job
picnics.
ENTREPRENEURSHIP IN
THAILAND
 FACTS
• Based on a Global Entrepreneurship Monitor survey for 2016-17, Thailand's established-
business ownership rate of 27.5 per cent is the second highest among 65 countries polled.

• A large number of Thais have a positive attitude towards being entrepreneurs, which carries
a high status in Thai society.
 ENTREPRENEURSHIP IN
THAILAND
• The commercial class in Thailand is made up mainly of Thais of Chinese origin.
Intermarriage between Thais and Chinese has dated back centuries.
• The role of Thai-Chinese, as the dominant commercial class, has been a decisive factor in
the country’s industrial transformation. Their entrepreneurial spirit has helped expand
entrepreneurial activity and speed up the economic development process.
• Most of the entrepreneurial ventures in Thailand are small and focus on the consumer
service sector in retailing, restaurants, and personal services, such as health and beauty
services.
• Failures have been viewed as a learning process on the entrepreneurship road map. Buddhist
values also contributed to the attitude of tolerance towards failures among the
entrepreneurial class in Thailand.
 WHAT IS ENTREPRENEURSHIP
MALAYSIA ?

• Entrepreneurship is one of the main drivers of economic growth in

which it creates wealth, innovation and technology deployment and
reduces poverty. ...

• The Malaysian government has continuously encouraged the

involvement of its people, especially the Bumiputera or the Malays in
entrepreneurship
ENTREPRENEURSHIP IN
MALAYSIA
 ENTREPRENEURSHIP IN
MALAYSIA
• Kelantanese women have traditionally been the main breadwinners of the family and worked as petty
traders in the markets, thus engaging in a basic form of entrepreneurship.
• Privatization Master Plan - served to create a small class of millionaire entrepreneurs.
• SMI development policies are evidence of the government’s encouraging attitude toward enterprise
creation.
• The government has also promoted the non-failure of enterprises in the aftermath of the Asian
economic crisis by setting up various special purpose vehicles such as Danaharta Nasional and
Danamodal to acquire and manage non-performing loans (NPLs), and to recapitalize the banking
sector, respectively.
• Corporate Debt Restructuring Committee (CDRC) provided a platform for both the borrowers and the
creditors to work out feasible debt restructuring schemes without having to resort to legal
proceedings.