Forms of and Influencing Factors on Informal Entrepreneurship in China Dissertation

Forms of and Influencing Factors on Informal Entrepreneurship in China - Dissertation Example Since the end of Cultural Revolution in China, the informal entrepreneurs occurred before reform and through the 80’s, consisting of very small-scale activities in retail and services such as street vendors. Some of them achieved success beyond their expectations. But for most, business was a means of subsistence. However, with the development of economy in China so far, motivations for many informal entrepreneurs are not only subsistence-related; but also their informal activities are directed at maximizing their business’s profit. Allen (2002) claims that since China officially became a member of the WTO in 2001, and has agreed to undertake additional economic reforms, the market is freer, and the key to the country’s success lies in its fast-growing ‘informal’ sector. Therefore, there has been increasing interest in researching the types of informal entrepreneurship and the factors that have led the people to do it in China. 1.1 What is informal entrepreneurship in China? However, what is the informal entrepreneurship of China? Allen (2002) defines this sector as all firms or individuals not controlled by the government or publicly traded. Informal entrepreneurship is a vast term that includes self-employment, and private enterprises employing the unregistered migrant workers. unlike the formal entrepreneurship that is subject to the regulation and management by the government, and is encouraged, supported and managed by the government (Tsinghua University, 2006). ... What are the main types of informal entrepreneurship in China? 2. Why there are lots of people choosing to do this in China? Both of these questions will be researched by combining the unique contextual conditions of China, as well as the government policies and regulations. for instance, the largest population is one of the most important factors to be concerned as it increases the needs of people to be addressed by the government and encourages people to find alternate means of earning money since the number of jobs is limited.  Additionally, it is very interesting that almost all studying abroad Chinese students have always reflected on the same problem: they are complete strangers to the lifestyle of people in Europe because there are less and less ‘informal stores or street vendors’ in the European countries, especially at night, they miss China so much. Thus, it seems the demand of ‘informal business’ is quite large and sustainable in China since m any businesses are operated 24/7 thus providing the consumers with more flexibility in terms of approaching the informal entrepreneurs. The aim of this research project is to provide a theoretical base within Chinese context and special nation conditions of China in order to help foreign practitioners as well as local entrepreneurs to gain a deeper and more practical insight into Chinese informal entrepreneurship environment. 2.0 Literature Review This section reviews the literature to discuss what numerous authors, scholars and researchers in the past have said about informal entrepreneurship in general and that in China in particular. Topics discussed in this