[ Interarea Sessions, Table of Contents ]
[ Panels by World Area Main Menu ]
[ View the Timetable of Panels ]
Entrepreneurship and Development in Asia: A Multidisciplinary Assessment
Organizer: Louis Augustin-Jean, University of Tsukuba
Chair: Anne Androuais, CNRS- University of Paris
Discussant: Louis Augustin-Jean, University of Tsukuba
The “East Asian Miracle” debate, which gained prominence after the World Bank study (1993), has tried to conciliate two discourses of development. The first is liberal and sees market forces, limited government intervention, and an export-oriented strategy behind the development of Asia (Krueger…). The second shows the important role of governments in mapping the path of development, with selective intervention and early support to and nurture of “infant industries” (Amsden...) Entrepreneurs, the main agents of development (Schumpeter), have no place in these perspectives. The liberal stance emphasizes entrepreneurs as agents who can make full use of the market, but are only limited to being resource maximizers: the neoclassical theory does not even have a place for entrepreneurs (Casson). Conversely, but similarly, “interventionists” have mainly concentrated on the role of governments, leaving entrepreneurs aside.
In this panel, the gap between these economic theories and the role of entrepreneurs in Asia’s economic development will be filled through the establishment of a dialogue between economists and social scientists – some of whom have produced detailed studies on the subject (cf. the sociological work of Wong Siu-lun on Hong Kong). Emphasis will be put on the importance of networks, social and geographic proximity, and the internationalization of SMEs. Case studies from developed (Japan, Hong Kong) and developing (Thailand, Philippines) regions alike will be presented in order to produce lively debate. The papers will be subject to discussion and will form the backbone for a series of sections published in the Canadian Journal of Development Studies.
Entrepreneurship and Philippine Development
Eric C. Batalla, De La Salle University
The link between Philippine entrepreneurship and development has not received much scholarly attention lately. The more recent studies of Philippine entrepreneurship are oriented towards building skills to establish and manage small and medium-sized enterprises (SMEs). As well, illustrative cases attempt to inspire Filipinos for business. Studies relating to the political economy of Philippine development, on the other hand, frequently neglect the element of entrepreneurship. Often, the stress is laid on problems of politics and governance such as business-government relations, leadership, the nature of Philippine state and society, and economic policy errors. These emphases on the entrepreneurial experiences on the one hand and on governance problems on the other depart from earlier works on Philippine business history, which contextualize entrepreneurial development in its social, political, and economic environments. In light of the economic achievements in East Asia and the Philippines’ lagging economic performance, questions linger about the quantity and quality of Filipino entrepreneurship. Likewise, Philippine development performance resurrects the issue about the sources of constraints on Filipino entrepreneurship. Is Filipino entrepreneurship constrained more by social and motivational limitations than by political and economic factors? The paper surveys Philippine entrepreneurship and development from a comparative and historical perspective. It sketches the development and behavior of big business as well as SMEs in history. The paper also incorporates findings from a recent survey of SME exporters.
Rare Entrepreneurship in Japan
Edson Kenji Kondo, University of Tsukuba
Japan is not famous as an entrepreneurial society, although old neighborhoods used to feature many houses with their fronts converted to small shops until the recent invasion of convenience store chains that closed down most of them. Also a large number of family run small machining shops dot the industrial districts around Japan providing just-in-time parts supply to many well-known large companies. Some entrepreneurial spirit was kindled by the aggressive entrepreneurial activities of some young Japanese businessmen, but recent scandals involving accusations of insider trading by the two most visible entrepreneurs have brought some uncertainty to the continued intensification of entrepreneurial activity in Japan. Most serious for Japan is that she has not found the right direction to pursue and are imitating movements occurred in the U.S. a couple of decades ago. The true contribution that Japan can provide to entrepreneurship for development is to show a new path towards sustainable entrepreneurship. Nikko, a small producer of automatic auto-parts machines, shows the kinds of values that can guide the Japanese business community to a more sustainable way of producing and commercializing goods.
Chinese SMEs in the Border Regions of Far East
Barbara Despiney-Zochowska, CNRS- University of Paris
The aim of this paper is to present the initial effects induced by Chinese development strategies in the border regions of Russia. As such, this research is concerned with the nature of the firms and their environment, as well as with the localization of this development: the area under study belongs to a region which experience a strong growth: the Asia-Pacific region. The main objective here is to study the capacity of the local environment in Russia to open to international trade, through the analysis of Sino-Russian joint ventures, the special economic zones (the Chinese zones being used as examples), and border trade. The results presented here are a part of a collective and multidisciplinary research conducted for several years at the Centre for Siberian Studies, the Institute of Slavonic Studies in Paris. This research has some new development today at the Centre for Economic Research of the University of Paris Sorbonne, which conducted fieldwork and a qualitative adaptation of statistical data in relation to the demography of Chinese SMEs in Russian Far East, in order to understand the local economic dynamics. This theme is even more relevant in the context of the emergence of two new economic powers in Asia: China and India.
Entrepreneurship and Economic Growth in Hong Kong
Louis Augustin-Jean, University of TsukubaThe role of entrepreneurs in the development of Hong Kong has long been emphasized by scholars as well as by the local government. A certain ideology has been built up, in which the free market (Hong Kong being rated as the “freest economy in the world”) gives latitude to entrepreneurship. Nevertheless, recent surveys have shown that Hong Kong lags behind in terms of “entrepreneurial spirit” when compared to its neighbor Shenzhen, as well as to some of its “competitors”. This prompts me to raise the following question: what is the role of entrepreneurship in the course of the economic development and/or in a developed area such as Hong Kong?
In this debate, economic theory has to be supplemented by sociology: while entrepreneurs are the main agents of economic growth, they are not the insulated heroes of Schumpeter: social contexts matter and agents who are more likely to become entrepreneurs are often members of minority groups (e.g. ethnic minorities) or marginalized individuals. In other words, when societies undergo a period of change, more opportunities for entrepreneurship occur. On the contrary, in more mature societies such as Hong Kong, opportunities for highly paid jobs tend to deter better educated people from entrepreneurial activities. With this hypothesis in mind, the paper reviews Hong Kong entrepreneurship in a historical framework and shows that the recent lack of entrepreneurship in the territory is more the sign of a maturing economy than of a decaying one. It concludes that Hong Kong is transforming from a city of entrepreneurs to a entrepreneurial city, with the combined actions of the local government and business circles – even though it is unclear if the concept of an “entrepreneurial territory” remains credible if the current lack of entrepreneurs persists in the long run.