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How is Asia’s Innovation Affected By Mom and Pop Family Owned Businesses?

How is Asia’s Innovation Affected By Mom and Pop Family Owned Businesses?

In many regions across the globe, the entrepreneurial spirit of the small, family owned business is being overpowered by large group, publicly traded conglomerates.

In many places it is simply becoming financially impossible to keep up a small business. However in a large portion of the Asian market, countries like South Korea, Japan and China are not only supporting small businesses, but are encouraging them and their innovative ideas. In these areas it is the family owned businesses that are rebuilding the economies.

South Korean President Park Chung-hee (1967-1979) heavily encouraged the success of family run businesses by issuing favorable tax incentives and a small business friendly economic plan that has been the key in rebuilding their economy after the Korean War. It was the small businesses that grew into some of the most famous multinational companies (LG, Samsung, and Hyundai just to name a few).

South Korea’s current (and first female president), Park Guen-hye has been following with this focus. She has been very forthcoming with her plans for supporting and promoting advances in technology and helping support entrepreneurship. She has been actively meeting with top US entrepreneurs like Larry Page, Mark Zuckerberg, and Bill Gates. This kind of government support has made it possible for South Korea to become one of the current world leaders of innovation in manufacturing and process.

Japan experienced a very similar kind of growth after WWII. However, Japan has recently been dealing with a lack of strong governmental leadership, which is causing a decline in their economics. Japan is not without hope. There is a lot of promising speculation around the policies of Japanese Prime Minister, Shinzo Abe. His “Abenomics” is creating optimism in Japanese voters and is strengthening the encouragement for ingenuity and innovation in small business owners.

China is another country that is really keen on pushing small business innovation. In order to serve their 1.3 billion citizens and residents, China is most interested in creating enough jobs to support their economy. For, though the government is worth roughly 7 trillion dollars, the average income of the countries citizens is only $6,000. This means that China is filled with large groups of people who are not making a livable wage. China’s need for gainful employment has led to a drive for entrepreneurial risk takers and has resulted in thousands of start-ups across the country.

From an innovation standpoint, Asia is moving quickly down the entrepreneurial high way and is rewarding those small businesses with the forethought and innovative thinking to continue to push the envelope for the overall good of their country’s economy.