A privately owned enterprise in China is revered when the economy is going great guns because of their "contribution" to the growth in China. They receive praise and awards and are set on a pedestal as great entrepreneurs and social leaders.
When the economy falters - as it has recently - then private enterprise CEOs are faced with limited ability to borrom capital to maintain cash reserves. They struggle with holding on to their employees and have begun to seek investors to resolve their capital problems.
Private enterprises in China are still second class citizens as their access to capital is limited and their recent experience - over the past 10/15 years - has not provided an experience base to raise capital or seek investment partners.
Many are increasingly stuck in the middle with no good options.
Paradoxes remain.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment