China Law Blog

That's the trend. Some east coast provinces have a reputation for being an incubating ground for entrepreneurs.

Hang --

Thanks for checking in.

Why do you think it is that the east coast provinces (any in particular?) have that reputation? Is the reputations justified.

"east coast provinces" may be too general. To be more specific, provinces like Zhejiang, some cities in Guangdong are the home for entrepreneurship. Zhejiang is an outstanding example. CCTV had a program devoted to Zhejiang business people weeks ago. Most of these people started their business either from scratch or from very small family businesses.

In China, there is no organizations like Scottish Enterprise, American Small Businesses Association, etc., providing assistance to entrepreneurs. There are virtually no angels who would like to invest in startups. Given the fact that China does not have a favorable environment for entrepreneurship, these Chinese entreprenuers can be called heroes.

Many research papers are focusing on entrepreneurship in Wenzhou, Zhejiang province. From what I have read and seen personally, I do think the reputation is justified.

Go and check the Forbes richest in China, it may add weight to what I've said.

Hang -- Does this region produce entrepreneurs because they have a culture and/or a history well suited for this, or is this region producing entrepreneurs because the government has been more encouraging of them there? Or is it something else entirely?

China's entrepreneurs rising has an impact on its business and people, but I think it also enlarges the gap between the poor and the rich.
The rich lead a comfortable and happy life, however, the poor find it very hard to survive in this competitive world.

Wenyuan Tan --

Thanks you so much for checking in. I agree that the gap between the rich and the poor is rising in China, but would you agree this is mostly because the rich are getting richer, rather than the poor getting poorer? Do you think the Chinese government's recent efforts to help the rural areas will have any impact on the wealth gap? I am not terribly optimistic that it will.