NAME: BABALOLA, Timothy Idowu
COURSE CODE:
LECTURER IN-CHARGE: DR. ILORI
APRIL, 2025
QUESTION: Provide an historical overview of entrepreneurship in the countries
below: Highlighting the factors that influence their entrepreneurship development
Japan
China
The Japanese entrepreneurship, while not always at the forefront of global
innovation, has a rich history rooted in the Meiji Restoration, evolving from
agricultural roots to a focus on industrialization and later, a blend of innovation
and established strengths.
Early Roots (Pre-Meiji):
Tokugawa Era:
Before the Meiji Restoration (1868), Japanese producers, particularly in rural
areas, developed entrepreneurial skills by producing cash crops and handicrafts
for market, laying the groundwork for future industrial growth.
Examples:
Farmers like Satō Gentabei in Fukushima, who produced sake, tea, rice,
soybeans, and yarn, and employed villagers to spin yarn, illustrate this early
entrepreneurial spirit.
Meiji Restoration and Industrialization:
Rapid Industrialization: The Meiji Restoration ushered in a period of rapid
industrialization, capitalist economic development, and a shift from feudal workers
to wage labor.
State-Owned Factories: Japan established state-owned factories to serve as
models for industrial development, fostering a culture of innovation and
technological advancement.
Focus on Technological Change, Capital Accumulation, Labor, and
Trade: The Japanese economic miracle was driven by these four factors.
Post-Industrialization and Current Landscape:
Innovation and Startups:
While still modest compared to the size of the Japanese economy, innovative
entrepreneurship has become more common in Japan.
Venture Capital:
Some of the world's best-known venture capital firms have established outposts
in Japan.
J-Startup Program:
The Ministry of Economy, Trade, and Industry (METI) launched the J-Startup
program in 2018 to support promising startups, including those spun off from
universities.
Challenges:
Japan's entrepreneurial environment has been rated as just sufficient, and there
are some challenges in areas like opportunity perception, start-up skills, and
networking.
Focus on Incremental Innovation:
Japan's successes were based on unique and systematic breakthrough innovation
and an accumulation of incremental innovation.
THESE ARE FACTORS INFLUENCE ENTREPRENEURSHIP
DEVELOPMENT IN JAPAN,
1. a cultural preference for stability and large companies,
2. inadequate entrepreneurship education,
3. structural barriers like high startup costs and labor shortages,
4. the need for government policies to foster innovation and support new
ventures.
REFEREES
1. Johannes Hirschmeier, Origins of Entrepreneurship in Meiji Japan (Cambridge:
Harvard University Press, 1964), 91–104.
2. E. Sydney Crawcour, “Economic Change in the Nineteenth Century,”
in Cambridge History of Japan: The Nineteenth Century, vol. 5 (New York:
Cambridge University Press, 1989), 585–592.
3. Joseph A. Schumpeter, The Theory of Economic Development: An Inquiry into
Profits, Capital, Credit, Interest, and the Business Cycle (Cambridge: Harvard
University Press, 1934), 66.
CHINA
China's entrepreneurial landscape has undergone a dramatic transformation,
evolving from a largely state-controlled economy to a vibrant hub of private
enterprise, particularly since the economic reforms of the late 1970s.
Pre-Reform Era:
Limited Private Enterprise:
Before 1978, China's economy was dominated by state-owned enterprises, with
little room for private initiative.
Confucian Values:
Traditional Confucian values, which emphasized social order and hierarchy, often
discouraged entrepreneurial pursuits.
Property Rights Issues:
In the pre-industrial era, sovereigns or local rulers held claim to all property,
including new inventions, which made it difficult for potential proprietors to
develop and grow businesses.
Focus on Government Positions:
The biggest rewards were reserved for those who did well in imperial
examinations, leading to a focus on government positions rather than business
ventures.
Post-Reform Era (1978 onwards):
Opening Up and Reforms:
Deng Xiaoping's economic reforms in 1978, which included the establishment of
special economic zones (SEZs) like Shenzhen, spurred entrepreneurial activity.
Rise of Private Sector:
The private sector experienced remarkable growth, surpassing state-owned and
collectively owned enterprises as the driver of the Chinese economy.
"Gang of 1992":
In the early 1990s, government officials, inspired by Deng's "Southern Visit," left
their positions to venture into businesses, a move that required great courage.
Internet Boom:
The rise of the internet in the mid to late 1990s led to the emergence of internet
entrepreneurs, with companies like Alibaba, Tencent, and Baidu emerging.
"World's Factory":
China became known as "the world's factory" due to its low labor costs, strong
business ecosystem, and relatively lax commercial regulations.
Emergence of New Business Structures:
Western company law challenged traditional Chinese business structures, leading
to the evolution of new business models.
Focus on Export-Oriented Entrepreneurship:
The initial focus of entrepreneurial activity was on exporting goods and
importing items, with entrepreneurs aiming to make goods cheaper for
international markets.
Vanguard Generation of Entrepreneurs:
The first wave of reforms spurred a generation of entrepreneurs, some of whom
lacked formal business management knowledge but were remarkably bold to start
their own businesses.
FACTORS INFLUENCE ENTREPRENEURSHIP DEVELOPMENT IN
CHINA,
including economic policies, government support, cultural values, access to capital
and infrastructure, and education, all of which contribute to the growth of
entrepreneurial activities.
Here's a more detailed breakdown:
1. ECONOMIC AND POLICY ENVIRONMENT:
Government Support:
The Chinese government actively promotes entrepreneurship through policies,
funding, and infrastructure development.
Economic Growth:
China's rapid economic growth has created opportunities and a favorable
environment for businesses to thrive.
Market Openness:
Increased market openness and globalization have allowed Chinese entrepreneurs
to access international markets and technologies.
Access to Capital:
While access to capital can be a challenge, China has seen an increase in venture
capital and other funding sources for startups.
Infrastructure:
Investment in infrastructure, such as transportation and communication networks,
has facilitated business operations and entrepreneurship.
2. CULTURAL AND SOCIAL FACTORS:
Entrepreneurial Spirit:
A growing entrepreneurial spirit, fueled by success stories and a desire for
innovation, is emerging in China.
Family Ties and Networks:
Strong family ties and business networks play a significant role in supporting
entrepreneurial ventures.
Emphasis on Education:
Entrepreneurship education and training programs are increasingly popular in
Chinese universities and schools.
Changing Attitudes:
There's a shift in societal attitudes towards entrepreneurship, with more people
viewing it as a viable career path.
3. TECHNOLOGICAL ADVANCEMENTS:
Innovation and Technology:
China's technological advancements, particularly in areas like e-commerce and
digital technology, have created new opportunities for entrepreneurs.
Technological Infrastructure:
The development of a strong technological infrastructure, including internet
access and mobile technology, has facilitated business operations.
4. Regional Disparities:
Coastal Regions:
Entrepreneurial activities are more concentrated in coastal regions with higher
levels of economic development and infrastructure.
Inner Regions:
While there are disparities, the government is also focusing on promoting
entrepreneurship in less developed regions.
