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Billions of Entrepreneurs in China and India

The document compares entrepreneurship in China and India. Both countries saw entrepreneurship rise in response to societal constraints, though China's government acts as the primary entrepreneur while India's is concentrated in the private sector. China embraced foreign investment and its diaspora more, while India engaged in some protectionism but was more open to new ideas. Information availability and reliability differ, with more credibility in India's media and agencies. The potential of each country's entrepreneurial environment for foreign investors requires experiments to assess viability.

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Vhishnu Vardhan
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1K views1 page

Billions of Entrepreneurs in China and India

The document compares entrepreneurship in China and India. Both countries saw entrepreneurship rise in response to societal constraints, though China's government acts as the primary entrepreneur while India's is concentrated in the private sector. China embraced foreign investment and its diaspora more, while India engaged in some protectionism but was more open to new ideas. Information availability and reliability differ, with more credibility in India's media and agencies. The potential of each country's entrepreneurial environment for foreign investors requires experiments to assess viability.

Uploaded by

Vhishnu Vardhan
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Billions of Entrepreneurs in China and India Tarun Khanna Tarun Khanna, author of Billions of Entrepreneurs: How China and

India are reshaping their Futures and Yours, in an interview compares the Entrepreneurship environment (Big, Medium and Small) in the 2 most populous nations in the World. Commonality: In both countries Entrepreneurship (getting things done more efficiently/creatively) is in response to societal/political constraints. Playing field in terms of urban/rural divide: Migratory trends show 50% of world in cities -> more infrastructure, human capital, and opportunities in cities. Alternatively, many entrepreneurs have exploited doing things differently for breaking into rural markets ->level playing field

Differences: Government (Type and Openness): 1. In China the government is the entrepreneur ie. Government intervention in any profitable company. In contrast Indian entrepreneurship is concentrated in the private sector and civil society.(Government involvement) 2. Openness of foreign investment more in China than India. +ves (India): Chinas Cultural Revolution cleansed the state of intellectuals, human capital etc hence its increased dependence on FDI. ves(India): India still engages in some protectionist behavior and lobbies to keep FDI out. Diaspora relations: China has embraced its Diaspora. India has shunned it( though post 1990 things are a little better due to opening of markets). Chinese didnt have strong internal markets -> used diaspora for strategic advantage. Openness to ideas: India has been more flexible and open in terms of adopting new ideas. Media: Government control in China vs Independence in India -> credibility of information availability. Reliability of Information (government agencies / Stock Markets/ Company Annual Reports): More in India (CMIE, NSE, ISI (Statistics)) than China (CSRC). This leads to Rawski( Prof Of Eco,Pittsburgh) deliberating over Is China the next bubble?

Some other points: Caste in India has become both less important( Business looks only at bottomline not your background) and more important (Vote Bank Politics by parties). India China trade relations need to be heightened to balance political tensions. For sizing the potential of a country a foreign investor needs to first pick whether he wants to invest in either of the countries( Or both like GE) and then conduct a series of experiments to weigh viability.

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