ISSUES SURROUNDING BUSINESS START-UPS

Issues surrounding business start-ups in China compared to the UK

Abstract

China has the world's largest single market and its economy has grown enormously in recent decades. There are different types of direct investments and due to the complex conditions in China, and there are a lot of difficulties and pitfalls for the foreign investor. The purpose of this study is to investigate issues surrounding business start-ups in China compared to the UK, by learning from their experience and expertise of professional advisers to demonstrate key factors leading to a successful establishment. This is done through a qualitative study in which telephone interviews were used as tools. This study joins forces with the theories, previous research, and conversations with companies and consultants, knowledge of investment in the Chinese market and the issues surrounding them. The results of the survey show how important it is to take into account the cultural differences. If a great understanding of the cultural differences between UK and Chinese people's, many problems can be solved relatively easily.



Issues surrounding business start-ups in China compared to the UK

Introduction

This paper presents Issues surrounding business start-ups in China compared to the UK. In the initial background of the essay, China incredible economic growth and a more liberalized economy as a result of joining the World Trade Organization is described. It is followed out of a problem discussion that describes difficulties but also opportunities to directly invest in business start-ups in China. The methodology will present first choice of research strategy.

The scientific approach of this paper is made via a qualitative approach, which presents data collection method, which informs that Primary data was collected through interviews with 16 different UK companies and experts. The chapter concludes with a presentation of the survey reliability and validity. Establishment Models is used in an investment on foreign soil, which accounts of the models pros and cons presented. The survey presents the results from all 16 interviews. The majority of interviews were conducted with the CEO. Here are the responses received from respondents. They are divided under three headings; preparation, establishment and problems. Empiricism results are analyzed and then put the theory of the culture and establishment theories as previously highlighted. This is to see if any connection is available. Hofstede's theory of cultural differences are taken into account and compared with the responses from respondents to see if the theory is consistent with what is happening in China today. These are reported under three headings; preparation, establishment and problems. Key factors for successful business start-ups in China are highlighted reported under preparation, establishment and problems.

Background of the study

As the world shrinks by the day as globalization spreads out it becomes increasingly important companies to actively work to become competitive and to stand up against their competitors. China is considered today as one of the best countries to invest in and more and more business start-ups are looking towards China. Due to extensive economic reforms, China has since 1979 had a ...