Archive for the ‘International’ Category
Tuesday, August 24, 2010 | Written by Erik Rostad
Posted under: International, Total Entrepreneurial Activity |
Tags: bollywood, engineering, IIT, india, india entrepreneurship, indian economy, innovation |
3 Comments
The new dean of the Harvard Business School, Indian-born Nitin Nohria, recently made this statement about Indian Engineers:
Indian companies have always had very strong engineering base, but no major global product yet identified as being developed in India.
This is actually quite astonishing when you consider that India has some of the best technical universities in the world. These IIT’s are so renown that most Indian students hope to get into an IIT over MIT.
In the past, many of these IIT graduates sought greener pastures in the United States and Western Europe. That’s where the jobs were. So the U.S.A. economy and workforce benefited greatly from these educated expats.
But recently, as the economic picture in India has been growing rapidly, many of these engineers have stayed in India to work for or start major companies. The fact that these companies, as Nitin Nohria notes, have not created a major global product may say more about the culture than the skills of the workforce.
In my own experience as a web developer, there have been times where I have relied on Indian contractors for aspects of my work. Now, I am relying on a very small base of workers here, and this could be true for particular workers in any country, but when I asked these Indian contractors to do very specific coding tasks, they excelled. When I asked them to be creative (ie. develop a logo based upon a few ideas), I could never use what they provided because it was that bad. I learned quickly that India is not the place to go for creativity.
Three years ago, I accompanied Jim Beach of The Entrepreneur School and a number of fellow students to India for a two-week trip to study entrepreneurship levels in India. The further goal was to determine if the Indian Government was helping or hurting entrepreneurship. Our conclusion was that the Government was taking some steps in the right direction, but that as a whole, the extensive bureaucratic process was taking its toll on entrepreneurial levels. We were continually told by businessmen and educators that the best thing the Indian Government could do would be to get out of the way.
In our meetings with students, educators, and businessmen, we saw a spark in the Indian people and a big desire to succeed. So, is the bureaucratic process stopping the next big thing coming from India, or is it something within the culture? Indian levels of entrepreneurial activity have been steadily decreasing over the past few years. So if it is a cultural barrier, how do you get beyond the wall?
Perhaps India is already breaking down barriers in another industry. The movie industry. Bollywood. Perhaps innovation in the entertainment industry will spark a cultural shift that will permeate other businesses and industries.
The skilled labor force is there. Venture Capital firms are present in India. The desire to succeed is strong. The missing component here is innovation and thinking outside the box.
What are your thoughts on why we have not seen a major global product developed in India? Use the comment box below to share your thoughts.
Tags: bollywood, engineering, IIT, india, india entrepreneurship, indian economy, innovation | Posted under International, Total Entrepreneurial Activity | 3 Comments
Thursday, August 19, 2010 | Written by Erik Rostad
Posted under: Government, International, Total Entrepreneurial Activity |
Tags: Africa, andrew mwenda, entrepreneurship, failure of aid money, Government, ted |
No Comments
Below is a video from the TED conference by a gentleman named Andrew Mwenda. In it, he describes the answer to Africa’s woes is not more aid, but is in releasing the entrepreneurial fervor of each nation. Job growth does not occur from more money to the government, but comes from entrepreneurs starting businesses. This is a very interesting video and one that holds relevance to the USA as well:
Tags: Africa, andrew mwenda, entrepreneurship, failure of aid money, Government, ted | Posted under Government, International, Total Entrepreneurial Activity | No Comments
Monday, August 9, 2010 | Written by Erik Rostad
Posted under: Government, International, Total Entrepreneurial Activity |
Tags: china, entrepreneurial success, entrepreneurship, guanxi, india, jugaad, start-up funding |
2 Comments
In 2007, a group of Georgia State students traveled to India to answer one central question – “Was the Indian government assisting or halting entrepreneurship?”
Our findings were that there were plenty of opportunities to start a business in India, that the bureaucratic process often hindered the speed of a start up, and that the Indian Government’s best policy would be to get out of the way.
A recent study on Entrepreneurial levels in India and China confirm these findings and added some very interesting information:
- Major motivation for Indian entrepreneurs is to be their own boss.
- Major motivation for Chinese entrepreneurs is to make more money.
- American entrepreneurs generally follow the Indian motivational factor of being their own boss.
- 23% of Chinese entrepreneurs say they are using training obtained in school to start their business.
- Only 9% of Indian entrepreneurs say the same about school.
- Family expectations were stronger in India compared to China (21% to 9%, respectively) as a motivation to start a business.
- Inspiration from entrepreneurial friends & family were cited as the reason 27% of Indians started their business and just 18% of Chinese.
- For Financing, 49% of Indians rely on start-up funding from Friends, Family, and Fools (the 3 F’s).
- Only 25% of Chinese entrepreneurs sought family funding.
- 49% of Chinese entrepreneurs obtained funds from banks.
- Only 27% of Indian entrepreneurs obtained funds from banks.
- As for the reasons for success for a new start-up, 93% of Chinese say “Guanxi” is the main reason. Guanxi is the personal relationships necessary to navigate China’s political, legal, and regulatory climate.
- 81% of Indians say “jugaad” is the reason for entrepreneurial success. Jugaad is the ability to be creative and innovative in getting around governmental regulations.
As we saw in our 2007 trip to India, entrepreneurs in India say getting around the government’s hefty bureaucracy is the is the main key to success. For the Chinese, it appears that the ability to navigate within this bureaucracy is the key to success.
What will happen as China’s middle class demands more protection and less government? How will this shift entrepreneurship in China? And what happens if India’s government truly begins to get out of the way? What successful traits will then be necessary to build a successful business in India? These are questions we will continue to monitor in the rise of India & China.
Tags: china, entrepreneurial success, entrepreneurship, guanxi, india, jugaad, start-up funding | Posted under Government, International, Total Entrepreneurial Activity | 2 Comments
Monday, May 24, 2010 | Written by Jim Beach
Posted under: International |
Tags: learning to export, SMEs Exporting, UPS press release |
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U.S. Small Businesses Can Seize Opportunities Using Lessons Learned from their Exporting Peers
Atlanta, May 24, 2010
Survey Finds Those Engaged in Global Trade Are More Positive About the State of Their Business
Although concerned about the economy, small- and medium-sized business exporters are confident about their companies’ futures, especially when it comes to international sales, according to this year’s Business Monitor United States survey commissioned by UPS (NYSE:UPS).
Of the small- and medium-sized business exporters interviewed, 85 percent said the economy was their top concern, far exceeding their worries about any other issue. However, most respondents indicated they remained positive about their businesses and their international sales opportunities. More than three-quarters (78 percent) said they were confident international sales leads would materialize.
“Entrepreneurs who export are self-assured, adaptable and resilient so it doesn’t surprise me that the survey shows exporters are confident about meeting their business goals,” said Laurel Delaney, owner of small-business consulting firm Global Trade Source.
The survey found that most small- and medium-sized businesses (61 percent) that had expanded into foreign markets did so with a sound plan. And, exporters are quick to learn about the in’s and out’s of exporting; more than half (53 percent) said they do not find the process of exporting frustrating. However, those who were newer to exporting said documentation and customs requirements were the biggest barriers to expansion.
“Talking to current exporters reveals that for many small businesses, the most difficult thing about exporting is just getting started,” said Dan Brutto, president, UPS International. “But with the administration’s new export initiative, there’s never been a better time for small businesses to give exporting a try. The right partner can serve as a bridge to help businesses ease into global trade and, in turn, find new revenue streams.”
More than one-third (35 percent) of small businesses said exporting had a significant impact on their overall sales. And when it comes to international sales leads, four in five businesses follow up on all leads. Those that don’t follow up indicated that a lack of trust with the prospective customer was their biggest concern.
The survey also found that small- and mid-sized businesses already exporting are looking to further expand globally. Respondents indicated they would most prefer to expand their business in the future to Europe (36 percent), followed by Asia (22 percent) and North America (22 percent).
For small- and medium-sized businesses not yet engaged in global commerce, advice is focused on:
- Taking advantage of the recently created National Export Initiative, which helps small businesses grow overseas business by overcoming common barriers to exporting.
- Working with trusted partners, such as consulates, the U.S. Commercial Service and the Small Business Administration.
- Boosting their online presence to increase visibility with overseas customers.
In addition, companies looking to expand globally should make a long-term commitment as exporting has long-term benefits. The survey found that long-term exporters (those exporting more than five years) say it has had more of an impact on sales growth than those companies newer to exporting, indicating that companies who have committed to making exporting part of their long-term expansion see the most benefit.
Social media: an underleveraged opportunity?
The survey also revealed that despite the entrepreneurial nature of small and medium business owners, they may not be making the most of social media. About one-quarter (24 percent) of respondents said they’ve received sales leads from social media, far behind word of mouth (84 percent), the company’s website (74 percent), networking events (50 percent) and sponsorships or advertising (41 percent). And just 1 percent cited it as the factor that, besides marketing communications, helped their business grow the most.
“Social media is one of the biggest marketing opportunities for small business today; nothing else offers such targeted exposure for such minimal costs,” said Jim Beach, entrepreneur, former University of Chattanooga professor, and co-founder of The Entrepreneur School, an online educational program designed to support the specific needs of entrepreneurs. “Social media offers another venue to access international markets and reach a whole new customer base.”
For complete results of the Business Monitor United States, visit ups.com/businessmonitor/us. UPS also offers tips and resources for small businesses looking to export at pressroom.ups.com/snapshotsforsmallbiz.
Tags: learning to export, SMEs Exporting, UPS press release | Posted under International | No Comments
Thursday, May 13, 2010 | Written by Jim Beach
Posted under: International, Marketing, Website Design |
Tags: Baidu, chinese search engines |
No Comments
Now that Google has left China, there is a missing piece in the Chinese search market. The largest competitor to Google was always a site called Baidu. It is now the best way to reach the 340 million Chinese Internet users.
There are two issues about having a Chinese website, hosting and translation. The Chinese market of 1.2 billion people, some 25% increases in web users, and a quickly growing middle class make China too small to ignore. Hosting remains difficult for American firms. You may need to know someone there to get a site established. I will be working on this issue and will blog about it soon. As far as getting a site translated, I would use odesk or eLance to find a local Chinese that can do the work for you.
Baidu offers direct accounts for Chinese speakers and an international support site that makes things easier for us non-Chinese. There are companies that offer full service Baidu help for US companies. These firms offer ad placement and writing, keyword tools, translation, and cultural advice. Baidu offers PPC and is susceptible to SEO manipulation just like Google.
Until recently, most results in a Baidu search were bought and paid for. In other words, to get ranked one number, you pay. Baidu’s new program, called Phoenix Nest, makes the service look just like Google, with all the ads on left. Since this change, the CPC has gone up, but the results are now more honest.
Improving traffic on Baidu can be done in several ways. Normal Google methods work for Baidu too. Links play less of a role on Baidu, which makes it easier to rank higher, sooner. But, the site must be in Chinese, it must be hosted in China, you must post your own site map, content must be high on the page, and no flash is allowed.
We will be posting more articles about international websites and how to start a business in China.
Tags: Baidu, chinese search engines | Posted under International, Marketing, Website Design | No Comments
Wednesday, February 10, 2010 | Written by Erik Rostad
Posted under: Creativity and Ideation, General Thoughts, International, Technology, Total Entrepreneurial Activity |
Tags: china overtaking usa patent applications, china patents, global patent applications, wipo |
No Comments
The UN recently released their report on the number of Patents applied for per country for 2009. The USA tops the list with 45,790 patent applications. This is about 54% more applications than number 2 on the list, Japan. What is surprising about the list of the top 15 countries is that 14 of them had a decrease in patent applications from 2008 to 2009 or remained relatively flat. China, on the other hand, had 29% more patent applications than the year before.
Right now, China is #5 on the list coming in with 7,946 patent applications for 2009. If China keeps up their application growth rate of 29.7% and the USA continues to decline at 11.4%, China will have more patent applications than the USA by the year 2013. This is not wholly unreasonable as China has averaged a 34% average patent application increase over the past 4 years.
Click here to see the full results, including a patent application list by country and by company. Also, the list of top 15 countries is contained at that link.
Tuesday, February 9, 2010 | Written by Erik Rostad
Posted under: International, Total Entrepreneurial Activity |
Tags: china, chinese entrepreneurship, entrepreneurship, shenzhen, Total Entrepreneurial Activity |
1 Comment
Over the last 10 years, China’s average rate of Entrepreneurship has averaged 14.1%. This is according to the Global Entrepreneurship Monitor that researches the percentage of the nation’s GDP generated by Entrepreneurial Activity.
So what does Entrepreneurship look like at a city by city level in China? According to a recent article in The Economist and a recent study by schools in Shenzhen & Hong Kong, entrepreneurial levels are decreasing rapidly in some of the biggest cities. Cities like Shenzhen (which had the highest rate of population growth from 1990 – 2000 out of any Chinese city) has seen it’s percentage of the population involved in entrepreneurial activity drop rapidly from 12% in 2004 to 5% in 2009.
The Universities conducting this study also noticed similar rate drops in other major Chinese cities. But on the other hand, high levels of Entrepreneurship showed up in the poor, rural cities.
This leads us into the discussion of Opportunity vs. Necessity Entrepreneurship. As cities such as Shenzhen (just north of Hong Kong on the Chinese side) develop, land prices rise, and the cost of starting a new business also rises. Most new businesses these days in Shenzhen are started out of opportunity and are not completely necessary to keep the entrepreneur alive. However, in the poor rural areas that are starting to accumulate people into future major cities, the entrepreneurial levels are high and are based upon necessity. Someone has to sell a widget to feed their family.
What we are seeing in China is that as major cities mature, their levels of corporate citizens rise and their levels of entrepreneurial activity decrease. Shenzhen’s drop of 12% to 5% is substantial.
Tags: china, chinese entrepreneurship, entrepreneurship, shenzhen, Total Entrepreneurial Activity | Posted under International, Total Entrepreneurial Activity | 1 Comment
Wednesday, January 13, 2010 | Written by Erik Rostad
Posted under: Entrepreneurship Quotes, General Thoughts, Government, International |
Tags: economic progress, entrepreneurship, google, google china, open economies |
No Comments
In Google’s official statement about their “New Approach to China,” they praised the entrepreneur in this exert:
China’s economic reform programs and its citizens’ entrepreneurial flair have lifted hundreds of millions of Chinese people out of poverty. Indeed, this great nation is at the heart of much economic progress and development in the world today.
We we keep an eye on the situation with Google and China on this blog. On one side of the argument, many believe that economic progress brought about by the exchange of commerce and ideas empowers the local middle class to demand more rights to conduct their affairs, thus placing pressure on the government to instigate change. Another argument is that a company will never be able to make change by cowering to the demands of a government to conduct business in a particular region. But if that company decides not to do business in the region as a result, are they setting themselves up for future failure by not being in the region?
Click here for Google’s full statement.
Tags: economic progress, entrepreneurship, google, google china, open economies | Posted under Entrepreneurship Quotes, General Thoughts, Government, International | No Comments
Friday, December 11, 2009 | Written by Erik Rostad
Posted under: Entrepreneurship Stories, General Thoughts, International |
Tags: douglas young, duddell street starbucks, g.o.d. ltd., hong kong culture |
1 Comment
Starbucks in Hong Kong - Photo by WiNG
“We do not always present to our customers with what they want, we prefer to surprise them with something desirable that he or she has not even imagined before.”
G.O.D. has three distinguishing factors that hit you immediately: Controversy, Surprise & Hong Kong Culture.
Take the name itself. Not many companies have taken the name of the almighty as their moniker. G.O.D. has also released a line of clothing with an English slogan that phonetically sounds like a very bad word in the language of Hong Kong, Cantonese. As their website explains, the name is also a play on sound:
“G.O.D. is the phonetic sound of the Cantonese slang “to live better,” because to live better is a basic human desire in Hong Kong, Asia, and the world.”
The other distinguishing factor of G.O.D. is the company’s obsession with Hong Kong culture. When you walk into their retail stores, everything about the store screams Hong Kong, from the products, to the photography, to the employees all wearing Mao-inspired uniforms.
Mr. Young also had a hand in designing what is perhaps one of the most famous Starbucks locations in the world (see photo above). Starbucks approached Mr. Young with an idea to slightly alter the look of one of their locations to fit the Hong Kong lifestyle. Mr. Young took one look at their ideas and decided to start from scratch. What he came up with was a copy of a 1950′s Hong Kong tea shop. The design shocked the Starbucks employees in charge of the project, but eventually, the design made it all the way to Starbucks’ CEO Howard Schultz who approved it himself. What resulted was an incredibly unique Starbucks location that made the Hong Kongers proud of their heritage. I had a chance to visit the Starbucks and was amazed at the number of people taking photos and giving tours of the location.
Mr. Young himself is an avid photographer of all things passing. In a city with few qualms about tearing down a historic building for a new skyscraper, Mr. Young has used his camera to capture parts of the Hong Kong lifestyle that are fading each day.
So what does all of this have to do with Entrepreneurship? Here are three lessons I took away from Mr. Young:
- Mr. Young emphatically states that a large part of a product or service’s intrigue is when it is closely tied with the country of origin. Take Burberry, Ralph Lauren, and Armani. Mr. Young has seen countless Hong Kong companies adopt styles and attributes from other countries and/or companies as a way to increase sales. But in return, the companies lose a part of their heritage. Mr. Young encourages staying true to yourself and your city/country of origin and reflect what is real. It doesn’t have to be pretty.
- Another lesson is that originality has a role in buying behavior. Louis Vuitton sells an enormous quantity of handbags but very few pieces of apparel. That is because they are known as innovators in the handbag market but just another average apparel company. G.O.D. Ltd tries to surprise their clients, not give them what market research says they want.
- A final lesson is that a little bit of controversy may be a good thing for your new company. Mr. Young is one part cultural crusader, another part nostalgic keeper, and a third part artist. He’s been in trouble with the law and has had numerous critics all because of some of the products he has released. But that notoriety has also led to the opportunity of working with some of the top companies from around the world on designing Hong Kong inspired products.
I leave you with G.O.D.’s mission statement:
“To Define a New Asian Identity. Asia’s climate, diet, space and culture are different from the west, why shouldn’t Asians live differently? The exciting challenge for today’s Asian designers is to define a new identity for their community.”
Tags: douglas young, duddell street starbucks, g.o.d. ltd., hong kong culture | Posted under Entrepreneurship Stories, General Thoughts, International | 1 Comment
Monday, December 7, 2009 | Written by Erik Rostad
Posted under: General Thoughts, International |
Tags: china municipality population, china population, china province population, top 10 china cities by population |
1 Comment
Here are the latest population figures for China by Municipality, Province, Autonomous Region, City, and Special Administrative Region:
Total Population: 1,338,612,969 (july 2009, cia.gov)
Municipality:
Beijing (Capital) – 17.4 million
Shanghai – 18.8 million
Chongqing – 31.4 million
Tianjin – 11.2 million
Province:
Anhui – 54.7 million
Fujian – 35.8 million
Gansu – 26.1 million
Guangdong – 94.5 million
Guizhou – 37.6 million
Hainan – 8.5 million
Hebei – 69.4 million
Heilongjiang – 38.2 million
Henan – 93.6 million
Hubei – 56.9 million
Hunan – 63.5 million
Jiangsu – 76.2 million
Jiangxi – 43.7 million
Jilin – 27.3 million
Liaoning – 42.9 million
Qinghai – 5.5 million
Shaanxi – 37.5 million
Shandong – 93.6 million
Shanxi – 33.9 million
Sichuan – 81.2 million
Yunnan – 45.1 million
Zhejiang – 50.6
Autonomous Regions:
Guangxi Zhuang – 47.6 million
Inner Mongolia – 24.1 million
Ningxia Hui – 6.1 million
Tibet (Xizang) – 2.8 million
Xinjiang Uygur – 20.9 million
Special Administrative Regions:
Hong Kong – 6.9 million
Macau – 540,000
Top 10 Cities:
Shanghai – 17 million
Beijing – 13.2 million
Guangzhou – 12 million
Shenzhen – 8.6 million
Tianjin – 8.2 million
Chongqing – 7.5 million
Hong Kong – 6.9 million
Dongguan – 6.9 million
Nanjing – 6.8 million
Wuhan – 6.6 million
There are 62 Chinese cities with a population over 1 million people!
Sunday, December 6, 2009 | Written by Erik Rostad
Posted under: International, Venture Capital |
Tags: angel investing, india, india venture capital |
No Comments
The average amount of funding for India’s new ventures varied between US$2.5 – $5 million in the last 18 months. This differs sharply with amounts funded before the economic downturn (US$1.5 – $2 million). These estimates come from the Indian Venture Capital Association (IVCA).
The Times of India has predicted an even higher average amount by the middle of 2010.
The biggest reason for this increase is that venture capitalists are becoming more discriminating in their choice of businesses to fund. In the economic downturn, only top-notch business plans are being considered. These businesses are usually in the IT sector and require more start-up funds that other industries.
Angel investing and early-stage funding deals have decreased in number as they do not meet the financial needs of the IT start-ups.
Estimates are that VC deals in India reached as high as $600 million from January – September of 2009. That is higher than the $500 million during a similar pre-downturn period.
The number of deals is also down during this same period to 150 compared to 250+ before.
In related news, Infosys co-founder N R Narayana Murthy recently started a new Venture Capital firm in India with an emphasis on funding businesses in nutrition, education, and basic healthcare.
Tags: angel investing, india, india venture capital | Posted under International, Venture Capital | No Comments
Thursday, December 3, 2009 | Written by Erik Rostad
Posted under: General Thoughts, International |
Tags: business relationships, china business, guanxi, hong kong |
1 Comment
I am in Hong Kong and just finished attending the 10th Annual Hong Kong Forum. It is a chance for all of the Hong Kong Associations from around the world to get together and learn from one another. HK Associations have the role of being ambassadors to their respective cities to promote Hong Kong and connect businesses.
One topic that came up during the forum was “Guanxi.” Guanxi is what is referred to as the necessary relationships for doing business within China. Very little can be accomplished in business in China without the right relationships.
What I found was interesting was that one of the speakers had a different take on Guanxi than what I have heard in the past. This particular speaker made the following statement:
“The key to Guanxi is performance. Always keep your promise.”
He went on to say that he didn’t particularly like spending time with businesspeople for the purpose of concentrating on relationships. The key was doing what you say you will do. A solid reputation can have just as much of a role as spending hours building relationships.
Tags: business relationships, china business, guanxi, hong kong | Posted under General Thoughts, International | 1 Comment
Wednesday, December 2, 2009 | Written by Erik Rostad
Posted under: International |
Tags: china, chinese consumer market, hong kong, hong kong gateway, iphone china |
2 Comments
What market should you enter first for your product or service? Hong Kong or China? Well, take a look at the following products/stores below to see where they started out:
Apple’s iPhone 3GS
Hong Kong Launch – July ’09
China Launch – Nov ’09
Zara
Hong Kong Launch – May ’04
China Launch – Jan ’08
Coke Zero
Hong Kong Launch – March ’07
China Launch – February ’08
Godiva Chocolate
Hong Kong Launch – 1998
China Launch – September ’09
These examples all point to a Hong Kong release and then a later entrance into China. And even though China has the large population, it might be a good idea to enter Hong Kong first.
Hong Kong has huge cachet within China as a fashion center. A product released and successful in Hong Kong will give the product a huge boost in the mainland market. It’s like the cool kid in school getting the newest sneakers.
Hong Kong is also an easier country to enter at this point of time. By connecting with a Hong Kong partner, you can not only sell your product in Hong Kong but also have a partner who knows the larger Chinese market.
According to Deloitte in Hong Kong, China is expected to have the following levels of growth in the consumer expenditure during the next 4 years:
2009 – 7.8%
2010 – 11.3%
2011 – 13.6%
2012 – 15%
2013 – 16.1%
Now would be a good time to enter Hong Kong to begin to prepare your way for the rapidly expanding Chinese market.
Tags: china, chinese consumer market, hong kong, hong kong gateway, iphone china | Posted under International | 2 Comments
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