The article “Factors influencing the formation of Chinese and American entrepreneurs” evaluates the factors that affect entrepreneurship formation in China and America. The two countries are chosen due to their status as economic superpowers, which are increasingly interdependent. China and the USA have diversely different cultures, economic setups, and policy regimes. The aim of the research is to investigate factors that contribute to successful entrepreneurship. In particular, the study restricts itself to a review of the factors mentioned above (culture, economy, and policy). The study finds that the most significant differences are to be found in the area of policy, whereby a significant difference exists in the response to policy between the USA and China. After a careful review of the research article, this essay concurs with main ideas and findings of the study.
Proof of Consistency and Validity of the Research Outcomes
The differences in the issue of policy can be attributed to the fact that it is determined primarily by external factors, in this particular case, government. The influence of government on the success of entrepreneurial formation is well noted in the literature. Indeed, the article points out that where a government fails to support market growth, this has a larger effect on entrepreneurship than the willingness of individuals to venture into the same (Lewis, Wei, Hao, Yong, & Vaccaro, 2013). Moreover, the article goes on to indicate that there are higher chances of entrepreneurs prospering when governments generate environments that are conducive. Typically, the government creates such an environment through policy. Therefore, differences in government policy, which are differences that are entirely external to the entrepreneur, would contribute significantly differently to entrepreneurial success.
The finding that culture and economics have a less significant contribution to differences in the formation of entrepreneurship than policy is consistent with the outcomes of the study. While there were many differences in cultural aspects, there were some similarities. The similarities can be attributed to shared values, which possibly derive from beliefs developed through education. The influence of education on responses to items is corroborated by outcomes on several items. For example, the study found that Chinese were more likely to follow a more detailed business plan. At the same time, the study found that Chinese entrepreneurs had a higher concentration in natural science degrees (Lewis et al., 2013). Given that these sciences normally emphasize on a procedural approach, one can reasonably contend that this is the reason why they are keener on following a detailed business plan. Another set of differences that once can closely correlate is the finding on the number of employees and the role of technology. Americans were more likely to start a business because of new technology and had fewer employees while incurring lower startup costs than their Chinese counterparts. One could correctly hypothesize that Americans used technology to gain a competitive advantage and lower their costs of doing business.
This essay has argued to support the findings of the research on the factors that influence entrepreneurial success. The results indicate that policy is one of the most significant differentiating factors between entrepreneurs in China and those in America. Policy is primarily determined by the government, which has a significant role to play in entrepreneurial success. On culture, there are some correlations between some of the cultural aspects. For instance, the Chinese, who have more degrees in the natural sciences, are more likely to follow a detailed business plan. Given these relationships, the outcomes of the study are thus consistent.
Lewis, P., Wei, L., Hao, Y., Yong, L., & Vaccaro, L. C. (2013). Factors influencing the formation of Chinese and American entrepreneurs. Journal of Entrepreneurship and Public Policy, 2(1), 54-66.