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Entrepreneurial Opportunities: Factors Used in Evaluating Home Country vs. the Host Country

+Study Overview

–  DDIE – Developed to Developing International Entrepreneurs. We defined Developed Country using United Nations HD Index (top 50)

–  Comprehensive Study – Covering Demographics, Opportunity Selection, Market Entrance, Government Policy, Quality of Life and Immigration

–  Part I : Demographics / Opportunity Selection

–  Broad Reach – Interviewees from 25 different countries, located in 10 different MSA (Metropolitan Statistical Area) across China.

–  Wide Spectrum – Covering from Startup to International Brand

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PART I

Participant Demographics

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Demographic

Home Country

+Unique Point Country Origin

n  United States had highest participation (29%)

n  Germany’s (8%) D.A.A.D. program – promotes students study aboard has significant impact in supporting German IE Development

City of Residence

n  DDIE seek existing clusters. Either for commerce, safety or share like-minds. One reason both Shanghai and Beijing have higher DDIE participation.

n  NOTE: DDIE Incubators without DDIE community, DO NOT increase local DDIE growth.

n  Example: Dalian’s SOS Ventures – This venture didn’t contribute to long term local entrepreneur clustering.

+Demographic

Residence City

Country of Origin

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Demographic

Age

+Unique Point

Startup Age is getting younger :

n  Average Startup Age – China DDIE (2002) – 37 years Old

n  Average Startup Age – China DDIE (2013) – 25 years Old

New DDIE More Focused / More Entrepreneurial

n  DDIE are starting up with MORE entrepreneurial experience (then previous years), NOT just unemployed.

While Old Dragon’s retire:

n  Current Post-40 Tend shows significant participation drop-off.

+Demographic

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Demographic

Gender

+Unique Point

n  Female participation in DDIE has increased significantly , From 5% in 2002 to 22% in 2013.

n  Today, Female DDIE have a significant participation in China F&B, Retail and Personal Services

n  Post 2002, Female DDIE participation tied to Spouse Overseas Deployment, this has changed.

+Demographic

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Demographic

Education

+Unique Point

n  Majority of DDIE (53%) have Post-Graduate Degrees

n  Developed Countries - Domestic Entrepreneurs (only 12% have Post Graduate Degrees) US Census

n  Immigrant Entrepreneurs in United States (20% have Post Graduate Degrees) US Census

n  DDIE come to China with Advanced degrees. Instead of Earning their Degree in Country.

+Demographic

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Challanges

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Challenges for DDIE success:

n  First, Lack of Local Social Capital

n  Second, Lack of Understanding and Access to Government Policy

n  Finally, Lack of Access to Distribution Channels

Challenges

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Conclusions

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Conclusions

n  Long term issues in favoring local businesses

n  Poor history on Changing Policy and NOT Grandfathering Current Businesses

n  Constraints on resources handled by government, NOT public sector (lack efficiency)

n  Lack of Social Education – Possible niche for Foreign Businesses (not just teaching English)

Conclusions

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Thank You