Indian Economy: Growth -3

[Guest]

[url="http://blog.theentrepreneurschool.com/indian-and-chinese-entrepreneurs-1975"]Indian and Chinese Entrepreneurs[/url]

A recent study on Entrepreneurial levels in India and China confirm these findings and added some very interesting information:



Major motivation for Indian entrepreneurs is to be their own boss.

Major motivation for Chinese entrepreneurs is to make more money.

American entrepreneurs generally follow the Indian motivational factor of being their own boss.

23% of Chinese entrepreneurs say they are using training obtained in school to start their business.

Only 9% of Indian entrepreneurs say the same about school.

Family expectations were stronger in India compared to China (21% to 9%, respectively) as a motivation to start a business.

Inspiration from entrepreneurial friends & family were cited as the reason 27% of Indians started their business and just 18% of Chinese.

For Financing, 49% of Indians rely on start-up funding from Friends, Family, and Fools (the 3 F’s).

Only 25% of Chinese entrepreneurs sought family funding.

49% of Chinese entrepreneurs obtained funds from banks.

Only 27% of Indian entrepreneurs obtained funds from banks.

As for the reasons for success for a new start-up, 93% of Chinese say “Guanxi” is the main reason. Guanxi is the personal relationships necessary to navigate China’s political, legal, and regulatory climate.

81% of Indians say “jugaad” is the reason for entrepreneurial success. Jugaad is the ability to be creative and innovative in getting around governmental regulations.



As we saw in our 2007 trip to India, entrepreneurs in India say getting around the government’s hefty bureaucracy is the is the main key to success. For the Chinese, it appears that the ability to navigate within this bureaucracy is the key to success.