Taiwanese follow American dream

Tag : Seaweed Paper
Entrepreneurship is a way of life in Taiwan, where go-it-alonebusinessmen are driven by a desire to become their own bosses aswell as make their fortunes. Computer salesman Ke Teh-an, forinstance, quit his job at a major local computer firm to open anAmerican-style diner that he hopes will make him rich.
"It's tough, that's for sure, but it's a dream," Ke says."It's a mess out there. Everyone wants to be his ownboss."
Ke employs four people at his Taipei diner and serves an average ofabout 250 customers per day. He has opened a second diner and issaving for a third outlet.
Ke's story isn't unusual. Running a business is so popular inTaiwan that more people are employed in small businesses than inThailand, which has almost three times the population.
"It's a cultural thing," says Cheng Cheng-mount, aneconomist at Citigroup in Taipei. "Among ethnic Chinese, youdon't want to be the employee. You want to be the employer."
The entrepreneurial streak in Taiwan dates back to the 1940s, whenmany of the Chinese businessmen and refugees fleeing the communistson the mainland opened shops on the island as there was no majorindustrial base to provide jobs.
Easily available business permits and government micro-loans keepthe entrepreneurial spirit alive today, and poor working conditionsand a do-it-yourself ethos also contribute to the desire of many toopen their own businesses.
About 70 per cent of Taiwanese companies are described ingovernment statistics as small-to-medium-sized enterprises (SMEs),with fewer than 200 employees. Taiwan's 1.24 million SMEs employedabout 7.8 million of the island's 23 million population in 2006 andcontributed about 30 per cent of all income.
The large number of SMEs in Taiwan has helped cultivate a versatileeconomy that has been resilient despite inflation, wage stagnationand barriers to employment, economists say.
"It's basically a good thing, because if a business is morenimble, it can pounce on any opportunity that comes its way,"says Vishnu Varathan, a regional economist at Forecast, aconsultancy in Singapore.
"[Small businesses] tend to have a better ability to reactfaster than big companies," he says, adding that Taiwan's manysmall businesses help to "squeeze more out of theeconomy".
As entrepreneurs scramble to find niches, Taiwanese consumersbenefit from a wide range of product choices and inventive ideas.Seaweed cakes from Taiwan's north coast, party balloons shaped likegiant animals and miniature paper houses for burning at traditionalfunerals are among the one-of-a-kind products that have spawnedsmall, successful businesses.
"Price is not necessarily the most important thing," saysRobert Lai, small business director at the economics ministry."Speciality is key."
Oddball businesses often prosper most in low-tech fields thatrequire less expertise and capital to start up, Lai says. Ke'sLaGuardia Diner, for example, offers New York-style bagels andburgers alongside traditional Chinese food. Ke started the businesseven though he had no previous restaurant experience.
The large number of small businesses in Taiwan was apparent at theComputex Taipei in July, a five-day international computer showthat showcased many small businesses plying homegrown products,from gadgets to software.
"We're not a big factory, but if you can provide personalservice, that helps," says Jacky Chen, owner of ItemsTechnology, a computerised TV equipment exporter with 50 employeesand annual revenues of NT$400 million (HK$102 million).
Down the street from Ke's diner, 19-year-old tea entrepreneur LinWo-sheng competes with other tea vendors selling gift products inbulk to overseas importers, mostly from the mainland and Japan.Margins are thin, says Lin, but he enjoys the freedom, even thoughthat often means working 11-hour days.
"Some people envy me," Lin says, grinning at he sits on aplush executive chair. "But some wouldn't do it."
Reuters