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Prof. Zhang Weiying Elucidates Entrepreneurship

Feb 17-2022   



Great entrepreneurs uphold long-termism; to help them do so, institutional and policy environments must be crafted and altered accordingly, says Prof. Zhang Weiying of the NSD in an exclusive interview which seeks to shed light on the market economy and entrepreneurship. The interview, along with ten others, makes up a program jointly produced by the NSD and Tecent News.

 

In as early as 1984, Prof. Zhang compared entrepreneurs to the ‘kings’ powering economic growth in one of his papers. For him, China’s economic development over the last four decades has mainly been driven by entrepreneurship and adoption of Western technologies, both of which in turn have been made possible by the government’s reforms to build a market economy. He points out that in the era of plan economy, entrepreneurship as a concept was non-existent in China; the reform and opening up introduced market mechanisms and endowed the common folk with the right of choice, including that of becoming an entrepreneur.

 

Only when the smartest people are willing to do business can a nation pull off promising economic development, for entrepreneurship entails relying on innovation to create wealth, says Prof. Zhang. What has happened over the course of China’s reform and opening up is that many capable farmers set up their own factories, government officials resign and go into business, and Chinese students return from overseas studies to launch companies. Collectively, they have built up the entrepreneurial pool that is critical to China’s economic development.

 

To ensure the smooth functioning of the market economy, the government must build and safeguard the rule of law, which enables everyone to form relatively stable future expectations about the payoff for doing honest business and the punishment for illegal dealings. In particular, protecting private property generates a critical incentive for companies to care about their reputation, says Prof. Zhang.

 

He also stresses the need for patience in building the market economy. “Don’t ask the government to step in just because a minor glitch has happened,” he cautions. “It might just get worse if not handled properly.” He advocates cultivating a stable and positive-cycled environment that rewards the honest and hardworking.

 

The market economy affords everyone with the opportunity to get rich by enabling each individual to leverage his or her strength, says Prof. Zhang. For example, it would have been unthinkable in the past for a country girl to become an online influencer and strike it rich. Moreover, what many people have failed to understand is that rather than simply distributing existing wealth, entrepreneurs must take risks and deliver innovations to create it. Many problems that have been blamed on the market economy are in fact born out of prerogatives, reminds Prof. Zhang.

 

 

 

Prof. Zhang Weiying Elucidates Entrepreneurship

Feb 17-2022   



Great entrepreneurs uphold long-termism; to help them do so, institutional and policy environments must be crafted and altered accordingly, says Prof. Zhang Weiying of the NSD in an exclusive interview which seeks to shed light on the market economy and entrepreneurship. The interview, along with ten others, makes up a program jointly produced by the NSD and Tecent News.

 

In as early as 1984, Prof. Zhang compared entrepreneurs to the ‘kings’ powering economic growth in one of his papers. For him, China’s economic development over the last four decades has mainly been driven by entrepreneurship and adoption of Western technologies, both of which in turn have been made possible by the government’s reforms to build a market economy. He points out that in the era of plan economy, entrepreneurship as a concept was non-existent in China; the reform and opening up introduced market mechanisms and endowed the common folk with the right of choice, including that of becoming an entrepreneur.

 

Only when the smartest people are willing to do business can a nation pull off promising economic development, for entrepreneurship entails relying on innovation to create wealth, says Prof. Zhang. What has happened over the course of China’s reform and opening up is that many capable farmers set up their own factories, government officials resign and go into business, and Chinese students return from overseas studies to launch companies. Collectively, they have built up the entrepreneurial pool that is critical to China’s economic development.

 

To ensure the smooth functioning of the market economy, the government must build and safeguard the rule of law, which enables everyone to form relatively stable future expectations about the payoff for doing honest business and the punishment for illegal dealings. In particular, protecting private property generates a critical incentive for companies to care about their reputation, says Prof. Zhang.

 

He also stresses the need for patience in building the market economy. “Don’t ask the government to step in just because a minor glitch has happened,” he cautions. “It might just get worse if not handled properly.” He advocates cultivating a stable and positive-cycled environment that rewards the honest and hardworking.

 

The market economy affords everyone with the opportunity to get rich by enabling each individual to leverage his or her strength, says Prof. Zhang. For example, it would have been unthinkable in the past for a country girl to become an online influencer and strike it rich. Moreover, what many people have failed to understand is that rather than simply distributing existing wealth, entrepreneurs must take risks and deliver innovations to create it. Many problems that have been blamed on the market economy are in fact born out of prerogatives, reminds Prof. Zhang.