The differences of entrepreneurship in China and Japan Research Paper

The differences of entrepreneurship in China and Japan - Research Paper poseres is China consequently, m any(prenominal) American firms have set up their manufacturing firm there in order to take advantage of not only the pathetic taxes but also the comparatively shabby labor. Considering this, one can identify a significant difference between the costs of doing business in China verses Japan. The tax rates in China is at 25 percent, which is one of the lowest in Asia, with some parts of China such as the Taiwan province where taxes are as low as 16 percent. As such, entrepreneurs do not have to pay much in taxes, and this encourages more(prenominal) people to invest therein, whether they are locals, or foreigners. In sharp contrast, Japan has the high schoolest tax rate among the countries in the region, standing at approximately 40 percent (EU-Japan Centre for Industrial Cooperation, 2011). This is almost as high as that the United States being the second highest in the OECD member states after the USA. This inevitably has made it more difficult for small business to take off in Japan unlike in China, and the world(prenominal) firms are more likely to choose Japan over China in an effort to sign costs. A decisive way in which the difference between Chinese and Japanese entrepreneurship can be differentiated is in their corporate cultures, the Japanese leverage their corporate culture with the intention of producing high attribute products and services, by patiently building their global reputations on diligence and quality. When a Japanese firm employs someone, it is through under the assumption that the person will stay with the firm indefinitely and they take loyalty super seriously as opposed to the bottom line. For instance, a firm in Japan is expected to muddle decisions that will allow the firm to avoid laying off workers even in times of crisis however, a Chinese firm may take... Entrepreneurship can be defined in among other ways, as a proc ess that causes changes in economical systems through the innovations facilitated by individuals as they respond or generate economic activities opportunities that add value to both themselves and society in which they live and do business. Ultimately, the roles of entrepreneurs who run the small and intermediate sized business enterprises cannot be overrated. Entrepreneurship, especially in the small and medium size enterprises is undoubtedly an intrinsical part of the economies of both Japan and China. Despite the many differences that exist in the entrepreneurship, in the two countries, it noted that the business cultures in both countries are closely related and unlike their western counterparts, business proceeding are personalized and people oriented. Foreigners wishing to start a small business in both country have to be well versed in the business cultures of the respective countries, and failure to do this can result in frustration. Personal trust is valued in both cou ntries and especially in Japan, contracts are not considered final and are open to be renegotiated, and one needs to be introduced to clients and customers by someone who knows them, as opposed to just approaching them as is characteristic of business interactions in the west. However, disrespect the cultural similarities, entrepreneurs wishing to start or run a successful business in any of these two countries will encounter a variety of different situations depending on the country in question.