How Chinese and Indian entrepreneurs compare

Two of the most repeated phrases about any economic recovery are that it will require entrepreneurs to grow businesses and that UK firms will have to exploit opportunities in China and India. But what do we know about entrepreneurs in the two nations? 

Now, thanks to new research, we have an idea. The Legatum Institute Survey of Entrepreneurs: China and India was produced with YouGov and asked for the opinions of 4,000 entrepreneurs.

Large majorities—81 per cent in China and 65 per cent in India—believe their country is more naturally entrepreneurial than other societies. And almost two-thirds (62 per cent) of Chinese entrepreneurs think China will be the biggest economic power in 20 years, while just under half of Indian entrepreneurs (48 per cent) reckon their country will dominate.

But there are key differences. The Indian responses show a greater dependence on family for the main source of finance and advice, compared to Chinese respondents, who use loan finance and seek advice from other entrepreneurs.

Indian respondents were also inspired to start their businesses by knowing other entrepreneurs, while the Chinese were motivated by something they learnt at school. Indian entrepreneurs looked to the freedom of being their own boss, while Chinese respondents cited making more money as the main reason for starting a business.

The view from China...
• 30% of entrepreneurs are self-employed and 29% have under
10 employees
• 84% believe China is headed in the right direction
• 78% reckon people can get ahead by working hard
• 47% think their country will be a much stronger global power in five years' time
• 74% believe their country is a good place for entrepreneurs to succeed
• 37% think their government is doing a "very good job" in making China a good place for entrepreneurs
• 53% say corruption is hurting business's chance
of success
• The most commonly cited factor determining future economic growth: government becoming more business-friendly

... and from india
• 35% are self-employed and 47% have under 10 employees
• 64% believe India is headed in the right direction
• 74% reckon people can get ahead by working hard
• 41% think their country will be a much stronger global power in five years' time
• 83% believe their country is a good place for entrepreneurs to succeed
• 18% think their government is doing a "very good job" in making their country a good place for entrepreneurs
• 63% say corruption is hurting business's chance
of success
• The most commonly cited factor determining future economic growth: cleaning up corruption