PRIVATE ENTREPRENEURS IN CHINA AND VIETNAM PART 2-2

There were conspicuous regional differences in the age pyramids of the private entrepreneurs on the one hand between South Vietnam and on the other hand in North and Central Vietnam.
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PRIVATE ENTREPRENEURS IN CHINA AND VIETNAM PART 2-2104 PART TWO: THE STRATEGIC GROUP ENTREPRENEURS 2. Texture, differentiation and strategic capital 2.1. Composition and starting conditions of the interviewed entrepreneurs2.1.1. Age structureThe age structure of the interviewed respondents was similar in both countries.More than two-thirds of the Chinese (70.8%) and Vietnamese entrepreneurs(73.0%) were aged between 30 and 50. This result corresponded to the 1995Chinese 1% sample amongst private entrepreneurs, according to which 74.9%of the entrepreneurs belonged to this age group.22 But 11.2% (China) and 7.5%(Vietnam) of them were younger than 30. The relatively high total figure forthe average of private entrepreneurs in both countries – measured by the aver-age age of the entire population23 – can be explained very well by the fact thatas a rule successful manufacture presupposes specific expertise and materialconditions which younger sections of the population possess to a much lesserextent than middle-aged or older ones. Capital and professional experiencecount amongst the preconditions as well as social contacts and connectionswhich one can only build up over a longer period of time. Younger people aremostly involved in the individual business tertiary sector. The age profile of thetertiary sector diverges therefore from the profile in the secondary sector. Worksuch as trading often presupposes to a lesser extent expertise in a specific fieldand the deployment of capital than the production of particular goods. Thematerial preconditions at the starting points are at the same time lower (forexample necessary production space or equipping with machines), so thatyounger people find it easier to make a start in trading, but at the same time canquickly earn a lot of money. Regional differences depend on specific local factors. The extremely high,youth unemployment rate in centers of heavy industry such as Baiyin may bethe reason why the proportion of under 40-year-olds at 53.1% is clearly higherthan in Hangzhou (39.1%) and Luohe (48.4%). The higher share of older peo-ple in Zheijiang, in turn may be caused by the fact that the more specializedstructure of industry there requires a higher level of (age determined) experi-ence. There were conspicuous regional differences in the age pyramids of the pri-vate entrepreneurs on the one hand between South Vietnam and on the otherhand in North and Central Vietnam. In the south the proportion of young entre-preneurs aged maximum 29 (16%) was eight times as high as in North Vietnamwith 2%; in Central Vietnam there was not one single representative of this age 22Zhang, Li and Xie 1996: 157; similarly: Zhang 2000. 23According to the Chinese Microcensus in 1995 about 28% belonged to the age-group be-tween 30 and 50, cf.. Zhongguo renkou tongji nianjian 1996: 76/77. In the Chinese age pyramid in1995 53% of the population were younger than 30, 18.9% between 20 and 29 years old. In Vietnam39% were between 15 and 34, 18,4% between 15 and 24, Thuc trang Lao Dong - Viec Lam 1998:49. DIFFERENTIATION AND STRATEGIC CAPITAL 105group. If one merged the age group under 40 years with that of the 29s or under,then almost half of the South Vietnamese group of entrepreneurs would begrouped under that heading, whereas in Central Vietnam only one-fifth wouldbelong to it. The high rate of employment amongst young people in the southand the regional strongly marked culture of entrepreneurship may play a role inthis trend.2.1.2. Familial and social originsThe majority of the respondents interviewed in China stem from peasant fami-lies (44.1%). This can be seen in a different light, however, in the urban-ruralcomparison. As far as the employment background of the father of the entre-preneurs is concerned, in the urban areas the cadre/manager is the largest group,and in the countryside still the second largest. However, the share of those whohad earlier been dubbed “class enemies” (capitalists or large land owners before1949), as part of their background was relatively low at 3.9%. However, it mayvery well be that not every respondent was willing to speak openly of that syn-drome in his or her family background. A nationwide Chinese survey found aproportion of as much as 7.1% of the respondents interviewed who stemmedfrom “black families” (former large land-owners, wealthy peasants, capitalists,“reactionary” officers and civil servants).24 The proportion of fathers with management experience was at 25% in theurban areas clearly higher than the proportion of administrative cadres (14.8%).The high percentage of peasants indicates on the one hand close relations withthe urban area, shows on the other hand, that despite their peasant backgroundsa significant part of the present-day entrepreneurial strata ...