Topic on Regional Economy

Business culture: cross-cultural

The professor for this session started by explaining a little about his life and how his life has been shaped around education. He had stayed in Xiamen for 30 years before visiting and studying in many universities around the world including Universities of Hull and Leeds as well as some in America. He went on to explain that the the city of Xiamen is based heavily around tourism. This had led to many locals being forced out of the area as it was becoming, simply, too difficult to live with rising house prises and so on.

It was made clear by the professor that family businesses are central to the economy. The main features of a Chinese family business were:

• Headed by the individual who founded the business;
• A web of subsidiaries and allied companies owned by the immediate and extended family members;
• Informal decision making; and
• succession – ensuring management is kept under family control.

It was clear to see in a city like Xiamen family businesses were encouraged with many little shops available to  buy different types of clothes, food and drink.