BUSN 3008 Entrepreneurship and SMEs

Short Answer Assignment 3

With the fast developing of Chinese economy, more and more companies are doing international business as internationalization had become an unavoidable trend for Chinese firms. Since the end of the 1990s of last century, after going out of the shade of Asian financial crisis, Chinese economy has been stepped into a ten years gold development age. A lot of Chinese enterprise developed rapidly. The quantity of Chinese corporations which entered the Fortune 500 also increased fast. (Dougherty, 2005). However, entrepreneurship has become much more" mainstream" over the past decade, especially in china.

Entrepreneurs influence formal economic institutions through direct involvement in politics, by using their entrepreneurial talent to use political power. In China, the government is often the entrepreneur. It is hard to find any reasonably sized Chinese company in which government authorities do not have input. Because politics is a nature part of the Chinese entrepreneurial process, most entrepreneurship has grown out of the political party's struggle for survival in china. In the other hand, entrepreneurs will be more competitive if entrepreneurs enjoy better political relations.

As a consequence, a lot of entrepreneurial activity in China is in the exercise of getting things done more efficiently and creatively in response to constraints that people find themselves involved in. Some of these constraints are societal; some are political. The advantage is the nature and extent of openness to outside influence and foreigners. Foreign direct investment pours into China.   Within those circumstances it came to rely on FDI, and help from the overseas Chinese was a big market of it.

Next, as no innovations will remain innovative for a long time, entrepreneurs can only be entrepreneurial for a very short period. Again, as Schumpeter noted," No one is an entrepreneur forever, only when he or she is...