An Investigation of the Success Factors of Young Chinese Entrepreneurs in Hong Kong

Abstract

ABSTRACT The aim of this study is to investigate multi-perspective success factors of a group of second generation Chinese entrepreneurs in Hong Kong. Results show that the common success factors differ slightly from those of last-generation entrepreneurs and international entrepreneurs. This study also suggests that a new level of success factors Spiritual Value and Fate including luck, religion, life philosophy (Mission Value) and ultimate life value (Image Value) of the 32 interviewees is different at different stages. INTRODUCTION Many people want to become rich and successful by starting their own businesses as entrepreneurs. Hong Kong is famous for its wealth. Its average per capita wealth in 2003 was US$28,700, the highest level in Asia. Friedman (1980) called Hong Kong the world best example of a capitalist city. It is a place where East meets West, and where capitalist ideology goes hand in hand with traditional Chinese beliefs. Hong Kong success is partly due to the efforts of entrepreneurs from China who fled to the territory after 1949 to escape the Civil War in China. These entrepreneurs led Hong Kong rapid economic development in the 1960s and 1970s. At present small and medium enterprises account for 98 percent of all local enterprises. It is no exaggeration to say that entrepreneurs are among Hong Kong most important assets. In Hong Kong, many young Chinese entrepreneurs have become a special power group with their own culture and common values, which are likely to be different from that of the traditional and global entrepreneurs. Do these values differ from those identified in previous studies? There is an obvious interest in exploring the factors that have influenced their entrepreneurial success. THE CONTRIBUTION OF THIS PAPER Interestingly, few studies have focused specifically on Chinese entrepreneurs, despite their importance. One of the most distinctive studies was done by Redding (1990). His book The Spirit of Chinese Capitalism was the first study of Chinese family business in the Asia-Pacific region, and sampled mostly representatives of the first generation of overseas Chinese. Another important study is Wong book on Shanghainese entrepreneurs, Emigrant Entrepreneurs (1988). Individuals value different things at different stages of their lives. The values held by entrepreneurs during the initial stage in which they struggle to build a business are probably different from those held after they become established and successful. Changing values may conceivably affect the operational direction of an entrepreneur company, and it is therefore interesting to see if these values do change over time and, if so, how they influence entrepreneurs success. By studying these topics, we should be able to identify a new set of success factors relevant to Hong Kong entrepreneurs. Furthermore, a study of how values change over time will provide a new perspective on entrepreneurial success factors and their relationship with values. RESEARCH STUDIES ON ENTREPRENEURIAL SUCCESS FACTORS Researchers are generally agreed that entrepreneurial success factors can be categorized into three types: personality attributes, demographic factors and the environment. PERSONALITY ATTRIBUTES According to Gartner (1989), the belief that entrepreneurs have distinctive personality characteristics has a long tradition in entrepreneurship studies, and the research based on this premise is known as the trait approach The influence of the trait approach is great and a recent study by S chmitt- Rodermund and Vondracek (2002) noted the relationship between personality traits and entrepreneurial orientation among German subjects. Need for Achievement McClelland (1965) suggested that the key to entrepreneurial behavior lay in achievement motivation. The need to achieve is the driving force of a person who spends more time on considering how to do a good job, and accomplish something. …