Indian Tigers, Chinese Dragons: Uncertainty, Risk, and Entrepreneurial Behavior

Abstract

Indian Tigers, Chinese Dragons: Uncertainty, Risk, and Entrepreneurial Behavior

This paper examines entrepreneurship in two of the modern marvels of emerging markets: China and India. Both of these countries have immense economic problems, but are growing at a strong rate. These growth rates are also creating powerful entrepreneurial forces. Which region is going to develop more entrepreneurs or attract foreign investments quicker is the key to a race between the two countries. This paper presents a conceptual framework that shows the relationships between uncertainty, risk, and entrepreneurial behavior, and also the problems and successes of entrepreneurs, with illustration of three cases from each country. The paper discusses similarities and differences in entrepreneurial risk taking between the two countries and presents key factors that impact entrepreneurial activity in these two countries. This paper has implications for companies seeking new markets, or business partners in these nations.