Transforming China in the 21st Century
Through Entrepreneurship
Michael E. Solt
Associate Dean
Lucas Graduate School of Business
September 2006
Ref #: AF-06-001
China’s 11th Five Year Plan, ratified in March 2006, contains a self-innovation strategy based on science and technology development that aims to transform China from being the world’s low-cost manufacturer to a leading country in innovation. Promoting the development of entrepreneurship and small- and medium-sized firms are central to the plan. This paper evaluates the self-innovation strategy relative to entrepreneurship in Western economies in terms of opportunities, resources, and entrepreneur/team (i.e., the Timmons Model). Recommendations include improving government policies, procedures, and oversight; developing internal Chinese capital markets; and instituting entrepreneurship education.
.