How is Entrepreneurship Done Differently in China?

Entrepreneurship is a career sought after by many individuals. Without these leaders emerging with innovative new business ideas, we might not have some of the most recognizable corporations that we have today. However, even though entrepreneurship has some industry-wide components that stay relevant wherever a business owner may find themselves, some differences are found throughout the world. China, in particular, is full of innovative business-minded individuals. Still, entrepreneurship there can often look entirely different than it does in the United States due to differences in culture, business practices, and government regulations.

How Is Entrepreneurship Done Differently in China?

While entrepreneurship does happen in China, it is crucial to recognize that cultural differences play a significant role in how this job market is perceived. For instance, Americans are very used to the idea of entrepreneurship, and there is very little government involvement in the establishment of new businesses. From side hustles to family businesses being passed down, entrepreneurship is something that stems from the very core of the American dream. The American culture encourages going after your interests and creating a career that gets you excited, which for many people means starting your own business as an entrepreneur. However, differences in culture mean that entrepreneurship is not as popular in China as in the United States or other countries, at least not in the same way.

You might be surprised to learn that entrepreneurship is a bit of an unattainable dream for many Chinese civilians. While Americans would be quick to say, “Just begin working on your business. You’ll only fail if you never try,” many born-and-bred Chinese would say, “Don’t be ridiculous.” The Chinese business model is, in many ways, incredibly different from the American business model. Many Chinese enterprises remain as units, with much of their business being controlled by the government. New enterprises are at a disadvantage due to the amount of government regulation, as it’s nearly impossible to start a business without government approval. It can be challenging to get the necessary clearances and approvals to begin a new business. Overall, it can be discouraging to those trying to form a new company, consequently leading to a far smaller entrepreneurial community.

The United States has grown used to seeing young entrepreneurs emerge, both male and female. In China, however, young people often lack the financial means, freedom and other resources needed to thrive as an entrepreneur. Instead, they enter into the next logical career step as is taught by traditional beliefs, especially as this is known to have fewer risks and will likely set the individual up for undeniable success. As a result, young adults who have finished their education usually join a well-established company. Nevertheless, plenty of innovation occurs within those established businesses, so entrepreneurial minds still have the opportunity to create new things. Chinese culture tends to place a higher value on family and social responsibility, which manifests itself in many ways, one of which being the expectation of establishing a stable career or perhaps taking over a family business. In most cases, the risk and uncertainty associated with entrepreneurial ventures simply don’t fit into that mindset.

Chinese society still holds very firmly to its existing norms and traditions that have been taught for centuries, although new regulations have been implemented in recent years that favor entrepreneurs. While western society remains progressive and constantly pushes new ideas and technologies, it would be silly to think China would conform to the same progressive ideas. The Chinese culture has many of its own successful enterprises and one of the world’s largest economies, proving that the country’s way of business, albeit different from American entrepreneurship, is doing just fine as is.