Title: The rise and growth of entrepreneurial companies in China: case study of two ventures (1994-2010)
Authors: Pier Abetti; Li Lin
Addresses: Lally School of Management and Technology, Rensselaer Polytechnic Institute, 110 8th Street, Troy, NY, 12180-3590, USA ' Lally School of Management and Technology, Rensselaer Polytechnic Institute, 110 8th Street, Troy, NY, 12180-3590, USA
Abstract: We discuss the slow birth, gradual rise and explosive growth of entrepreneurial companies in China as part of Deng Xiaoping's economic reform (1978-1989) from both a political and a practical perspective. This reform was the driving force in China's spectacular rise in world competitiveness from a ranking of 54 (among 127 countries) in 2006 to 26 (among 142 countries) in 2011. We then present the 17-year case history of a pioneering Chinese entrepreneur, Li Lin, who started and grew two entrepreneurial companies: Nanhui, the first private foreign automobile repair and maintenance shop in Beijing; and Eduassess, the first English language educational testing service for Chinese primary and high schools. We analyse the reasons why the first venture succeeded and the second failed. We conclude by summarising the success factors of Deng's economic reform and the lessons learned from the two case histories, which could be useful to entrepreneurs, economic development officials and venture capitalists in China, Korea, Vietnam and other developing countries in Asia, Africa and Latin America.
Keywords: Chinese entrepreneurial companies; economic reform; China; new ventures; Deng Xiaoping; entrepreneurship; case study; developing countries.
International Journal of Services Technology and Management, 2014 Vol.20 No.1/2/3, pp.149 - 174
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