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Challenges, Best Practices & Future Outlook of Entrepreneurship in China

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The presentation outlines Challenges, Best Practices, Reforms and Future Outlook of Entrepreneurship in China. The challenges are discussed in the areas of Raising Capital, Registering a Business, Hiring Talent & Government Relations

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Challenges, Best Practices & Future Outlook of Entrepreneurship in China

  1. 1. CHALLENGES OF ENTREPRENEURSHIP IN CHINAKshitij Kumar Parashar (KP) MBA Candidate, Class of 2017 Guanghua School of Management Peking University +86 1570 157 4470 kparashar@pku.edu.cn Linkedin
  2. 2. WORLD BANK INDEX: EASE OF DOING BUSINESS
  3. 3. CHALLENGES > BEST PRACTICES > FUTURE ▪ Challenges faced in each step ▪ Biggest Challenges ▪ Best Management Practices ▪ Reforms & Future Hiring Talent Step 3 Registering a Business Step 2 Raising Capital Step 1
  4. 4. RAISING CAPITAL
  5. 5. RAISING CAPITAL▪ Knowledge Asymmetry ▪ Guanxi plays key role ▪ Lot of funding for star players
  6. 6. REGISTERING A BUSINESS
  7. 7. REGISTERING A BUSINESS▪ Requires 13 steps and stamps ▪ Takes approximately 25-30 days ▪ Requires expertise in government bureaucracy
  8. 8. HIRING TALENT
  9. 9. HIRING TALENT: TIGHT TALENT MARKET 45% of employers believe there is a skill shortage * 2015 Hays Asia Salary Guide
  10. 10. HIRING TALENT: HIGH TURNOVER 19.1% in IT sector in 2015
  11. 11. WHY DO EMPLOYEES LEAVE? ▪ Higher Salary ▪ More learning *Salary & Employment Outlook for China 2015: Michael Page Consulting
  12. 12. HIRING TALENT: AGAINST THE GIANTS
  13. 13. HIRING TALENT ▪ Shortage of mid-senior level executives ▪ High Employee Turnover Ratio ▪ Up against the big industry giants
  14. 14. GOVERNMENT RELATIONS
  15. 15. GOVERNMENT RELATIONS ▪ Government Rules differ across provinces ▪ New sectors have uncertain regulatory environment ▪ Corruption avoidance policies
  16. 16. JACK MA “Be in love with government,but never marry them”
  17. 17. BIGGEST CHALLENGES
  18. 18. BIGGEST CHALLENGES ▪ Knowledge Asymmetry in Raising Capital ▪ High Employee Turnover Ratio ▪ Uncertainty of government regulation
  19. 19. BEST MANAGEMENT PRACTICES
  20. 20. BEST MANAGEMENT PRACTICES▪ Price Leadership wins the battle ▪ Guanxi is ever more important as new sectors undergo regulation ▪ Promote people more often ▪ Inculcate a harmonious and inclusive company culture
  21. 21. REFORMS
  22. 22. REFORMS▪ Anti-corruption Campaign ▪ Cut down procedures for registration to one day ▪ Financial markets : slow reform ▪ Made in China 2025: 13th Five Year Plan ▪ Promoting entrepreneurs in Tier 2 & 3 cities
  23. 23. FUTURE OUTLOOK
  24. 24. SUN, CEO OF SOFTBANK "I have strong feeling, 10-15 years from now, despite shaking situation in China, they will surpass US. And, after 20-25 years, India will become No. 1".

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