What’s The Secret Behind The Business Success Of The Overseas Chinese?
Posted by
eli
on 9/17/09• Categorized as Business Advice
My late uncle was a Chinese businessman. He came from Fujian, a province in China, with only a shirt on his back, typical of the Chinese immigrants of those times, and settled in the Philippines before the Second World War. Then he married my aunt, a younger sister of my mother.
My late uncle, with just a borrowed capital, was able to grow his business selling dry goods. He was one of the countless ubiquitous Chinese traders found everywhere in Southeast Asia, selling everything under the sun.
The overseas Chinese all came from mainland China, who migrated to other countries in Southeast Asia when China was still a very poor agricultural country.
These immigrant Chinese have been characterized as the indefatigable entrepreneur, the much feared competitor, the industrialist controlling vital parts of the economy.
For centuries, the natives of Southeast Asia have taken his business prowess for granted. Economic success seems to be something that the Overseas Chinese have been born and bred for But are the skills and attitudes necessary for business success really ingrained in Chinese culture?
What are the secrets behind the business success of the Overseas Chinese in Southeast Asia? Are they born entrepreneurs, traders, industrialists?
In an article published by the World Executive Digest years ago, it was found out that the secret formula behind the business success of the overseas Chinese are as follows:
1. High achievement drive – they succeed not because they are Chinese but precisely because they escaped from China of long ago and its inhibiting culture. This also include their efficiency and tough financial control that they practice in their businesses.
2. Entrepreneurial Culture –they succeeded because they were Chinese, with centuries-old breeding that tended to make them successful entrepreneurs. Their business organization – the Chinese family business—was built for survival, and certain traditional forces, values, and habits, such as the work ethic, thrift, and pragmatism, have served them well when they have moved into other countries.
3. Marketing – they discovered a multi-level business strategy appropriate to their resources, values, and new environments. This allowed them to succeed first as coolie laborers providing cheap labor. Then, as they became more successful, they filled various roles in ascending order: trader, distributors, entrepreneurs, and finally, industrialists.
There might be other explanations why the overseas Chinese are successful—businesswise. And they will continue to add more success stories as time goes by.
Your article today I like best. I always admire Chinese business men and women. I’m half-Chinese, half-Indonesian. I want to be a businesswoman like my father.
Thank you for sharing this very informative lesson about business.
Very good article. I agree that the Chinese culture encourages children, as early as six years old, to apprentice in the family business. The children get their business training and business is imparted to them at a young age. That’s why when they grow up they don’t want to be employed, but to have their own business also, no matter how small. Because that was their upbringing.
it reminds me of my best friend, who despite being the CPA board first placer, wasn’t allowed to work outside the family business even if the big firms lured him.
however, some aren’t as lucky. my wife’s grandparents were chinese from the mainland. but the entrepreneurial spirit stopped at them and we’re not passed on the next generation. talented they are, but not business-minded.
A very nice article. I also notice these traits in many immigrants who go overseas looking for a new life. They seem very hungry for a new life and many work hard to make a new life for themselves and their family. When I lived in the USA, I noticed many immigrants is my state of Hawaii.
Of course the Japanese and Chinese immigrants came to Hawaii as plantation workers in the early 1900’s and in two generations were able to rise to political and economic power in the state through hard work. Later, Filipino immigrants came and followed a similar path. I used to know immigrants who worked 2-3 minimum wage jobs to earn money for themselves and relatives back home. Usually their children became college educated and became part of the middle class. In the late 1900’s many Southeast Asians came after the Vietnam War, and they too worked very hard. Often times their children were the best and brightest children in school because their parents wanted that for them.
So the Chinese are reallty known as good enterpreneurs in the USA, but I think the new immigrants who have come, have more desire and are hungry for a new life than the average person. And in turn, they are successful in one or two generations. Sadly, sometimes by the third generation, this spirit is lost and the children are just your average American kids without so much desire. My grandparents were first generation immigrants and worked hard to give my parents a new life. I admire how strong they were to come to a new land without money, without education, and without knowledge of the language – and still be able to succeed in life. These are very special people.
@ Kimberly, thanks for your comments.
@ Si Lin, you have a good observation, I agree with you.
@ Ceblogger, I observed also that the next generation of Chinese are not as entrepreneurial as their grandparents and parents. Maybe they are not challenged as their parents before them, because they have already the luxury and business bequeath to them by their older folks. Unlike their grandparents who had to struggle and started from virtually nothing, to give their children and grandchildren good life.
@ Grayspirit, thanks for adding more inputs and wisdom to my article. Your comment is exhaustive and is like another article in itself. Superb, to say the least.
I enjoyed reading this article as well as the comments made by your insightful readers.
Indeed, many of the business tycoons and taipans or captains of industry are Chinese. Here in the Philippines we have Henry Sy (of SM Malls), John Gokongwei (of Robinson’s malls) and Tony Tan Caktiong (of Jollibee). They all have one thing in common: they came from humble backgrounds. They are just 3 of the most successful entrepreneurs I know.
I think another trait that makes for a successful entrepreneur is being a risk taker. You cannot go into business without having courage to take risks because ultimately, it is a gamble. So, courage and resilience definitely is needed. If an idea fails or a product doesn’t click in the market, an entrepreneur has to learn to get up and try again and gamble on another idea, another product.
Here is a speech given by John Gokongwei about entrepreneurship. It is a very humbling as well as inspiring speech. And any aspiring entrepreneur would do wee to read this. http://www.philippinestoday.net/April2002/inspirations402.htm