The following is one of a series of blog post that were written while I was in China in the spring of 2009 as part of my Eisenhower Fellowship. If you have interest in China’s culture I think you will enjoy this series.

What is the Right Question?

Who?

A question that leads to a narrative of a person.

When?

A question that leads to a definitive answers of time.

Where?

A question that leads to a simple recitation of a location.

How?

A question that leads to a presentation on how something was accomplished?

Why?

This question stands out from all others.  It is a question that often leads to more questions than answers.  

When, Where, Who and How are most often facts which can be memorized and recited back.  Answering these questions allows one to repeat what others have learned or done. 

Why… requires a broader thinking, a judgment, an interpretation of facts.  A simple yet critical word which opens the minds and leads us down an infinite number of paths.  It often illustrates the root causes of a problem, uncovers the true need and provides a framework for a path forward.

I have been fortunate to be surrounded by entrepreneurs, and I am convinced that one of the key differences in the way that their minds work is that they seek the answer to this one word sentence. Answering this simple question reveals new market needs which provide entrepreneurs the impetus to start new businesses. These new business are first to market and have staying power as market leaders.  

There is no question that China is in the process of attempting to mimic the entrepreneurial success of the United States.  There have been successes in China’s entrepreneurial community, but most have been entrepreneurs that answered the question how.  How did Google capture the market in the United State, the answer a company called Badu.  How did Facebook so quickly rise to prominence, the answer 17 different companies with the exact features, look and feel of Facebook.

China is throwing enormous sums of money at aspiring entrepreneurs to help them build business from the ground up.  Yet I believe they are attacking the issue at the wrong location.  Money alone can not create great entrepreneurs or startup companies.  

During my time in China, I must have asked the question why over 100 times.  Often the question was asked about the most basic of political or economic issues.  More often than not the answers was “I have never thought about it.”

American culture is rooted in heroes that not only asked the question why, but challenged the status quo once they discovered the answers. Individuals like Henry Ford who asked why the workers had to move to the parts.  Or patriots like Thomas Jefferson who asked why taxation without representation.  We have been blessed with a culture and created an education system that assistants in developing entrepreneurs from birth.  

Until either China’s educational system or culture encourage the question, why, to be asked their entrepreneurial community will be restricted to success stories rooted in the question how.

The following is one of a series of blog post that were written while I was in China in the spring of 2009 as part of my Eisenhower Fellowship. If you have interest in China’s culture I think you will enjoy this series.

A Subtle Priority

At almost every meeting when the topic of technology entrepreneurship has come up there has been a mention of Tsinghua University.  Whether the impact of the alumni network or research and development it is clear that Tsinghua is the center of the country’s technology development effort. 

After leaving a meeting at the University’s startup incubator which had over 400 companies under 7 million square feet, we decided to walk around the university.  I had heard over and over that the university is the most difficult in the country to get into with only a very small percentage of those that apply receiving admission.  As I walked I noted how that it was a nice yet typical college campus with relatively small three story granite buildings.  The walk ways were lined with trees and there were several grass area to lounge.   

As we strolled through the campus I noticed that large industrial buses were continually coming into the campus.   As I watched the parade of buses and hundreds of people unload from the buses I asked the escort what was going on.  She replied that they were tour buses.  Tsinghua University is one of the largest tourist attractions in the country. 

I was surprised at first.  There were certainly more attractive and historic places within Beijing.  But as I was thinking about the explanation I started to realize that the buses were full of families with young children, many of which were as young as five years old. They had come from all over the country. Often traveled for days in pack buses to see and pay respect to the institution that was educating the country’s best and the brightest. 

The power and implications of this cultural norm is compelling.  It embeds a priority in the nation’s youth while at the same time providing a visual tangible path to success and a better lifestyle.

The following is one of a series of blog post that were written while I was in China in the spring of 2009 as part of my Eisenhower Fellowship. If you have interest in China’s culture I think you will enjoy this series.

A Relative Perspective

One of my many hopes for this trip is to spend at least an hour each day speaking with random local people.  Yesterday provided an excellent opportunity to spend some time with an ordinary Chinese couple.

I had convinced my interrupter that we could walk to our next meeting which was about 5km away.  In an interesting process, we navigated our way to the meeting by stopping about every two blocks and asking for directions.  (No need for a map according to my escort).  One of the individuals that we asked for directions was an older lady who turned out to be extremely helpful and at the same time was as curious about me as I was about her and her husband.  Neither she nor her husband spoke English, so we walked for several miles with the interrupter translating back an fourth, a process that the older couple obviously enjoyed.

It turned out that the husband and wife were in their 70’s, although I would have guessed that they were in their 50’s.  They were both retired from the local steel mill which they worked at for over 30 years. The couple was taking their daily mid-morning walk to the local park just outside of the Forbidden City.  

As we slowly walked through the busy streets of Beijing there was, a striking difference in what each party was interested in.  They were interested in my thoughts on American politics and movie stars. I on the other hand was interested in the details of how they lived day-to-day in China’s largest city.  

They had two children, a boy and a girl, each who had a single child. They were clearly proud of their son who was working at a private company in Beijing. They were excited about the recent announcement that the government was going to increase spending on healthcare, though few details were provided as to how this would be a good thing.  They survived off a monthly pension and a small amount of savings.  

Since they were over 65, almost all government services were free, including transportation, healthcare, etc.  They lived in a two room apartment with running water, electricity, heat, but no air condition. They had a radio, but no television.  They certainly had heard of the Internet, but neither had ever used it, and most interestingly, never understood why anyone would want to! 

The couple seemed genuinely happy.  

They were a very nice couple, and I hope that they enjoyed our discussion as much as I did.  I’m sure I learned a lot more today about Chinese culture during my walk than I would have during a taxi ride. 

The following is one of a series of blog post that were written while I was in China in the spring of 2009 as part of my Eisenhower Fellowship. If you have interest in China’s culture I think you will enjoy this series.

The New Resource

In the pre-industrial era, the act of boarding a small boat that was packed with hundreds of people and setting off across the sea in hopes of arriving in America was a tremendously dangerous task that required great risk, tolerance and sacrifice. These daring journeys required men, woman and children to live in small cots and hammocks packed together to maximize space during the long voyage. Food turned moldy and sour and water became foul and undrinkable. The discomforts were nothing compared to the risks of survival. Childbirth, disease and death in these tiny quarters were commonplace. Storms and pirates also claimed many ships during this journey that would typically take over six weeks.

On arrival, it was understood that America was not the place to go if you wanted an easy life. America was a difficult environment that often required hard manual labor to survive. The newly arrived were not asked who they were, but what they could do.  For those willing to work, the opportunities were endless.  The federal and local governments of the day provided access to what is now called the American Dream, by providing incentives to invest in cheap, fertile land in the west.

Between 1820 and 1920, 33 million immigrants arrived on the shores of America.  They viewed this journey as a calculated risk in search of a better life for themselves and their families.

Likewise, those who were happy with their lives or simply unwilling to take a great risk remained in their respective countries. As a result, compared to other nations in the world, America emerged as a country filled with a disproportionate number of calculated risk-takers. This culture has been reinforced as those who are not comfortable with calculated risk-taking typically fail to flourish in the American culture. What has emerged is a society that admires hard work and calculated risk-taking by those with a passion and purpose to excel.  This is a key ingredient to our success as a society.

Standing in the Matrix Ventures board room on the 27 floor in downtown Beijing, one can see massive buildings and new construction as far as the eye can see through the hazy Beijing air.

As we sit down to speak with our host for the day, Mark, it is clear that no interpreter is needed.  A brief introduction revels that Mark was born in California.  His parents had emigrated from China to the United States well before his birth.  Growing up in San Francisco Mark never learned a single word of Chinese.  After attending Stanford he held a couple of jobs in early stage businesses and one with a small boutique venture capital firm.  About 3 years ago he took a step back and tried to look at the world objectively. At the age of 26 his goal was to determine the best path forward which would provide him the greatest opportunity.

After an honest reflection of his situation he decided to leave the bay area where he was born, raise and worked his entire life (in fact, he had always lived in a 5 mile radius). His journey would land him at a University in Beijing were he quickly learned the basics of the Chinese language.  His American education provided him unlimited opportunities in this developing land with an endless need for well educated individuals with strong experience.

The need for knowledgeable talent is so well recognized by the Chinese government that several plans are in place to attract the world’s top talent.  The most compelling program is the one designed to attracted entrepreneurs.  In short, the plan provides aspiring entrepreneurs who have degrees from western universities the following incentives to start a business in one of the country’s 54 high tech parks:

1) A subsidy of 1 million RMB ($150,000 USD) to start a business.  They take no equity; it does not need to be paid back.

2) Several other financing options by local governments which could provide loans for up to an additional 1 million RMB. Loans are typically guaranteed by the company not the individual.

3) Tax abatement – zero taxes in years 0-3, 17.5% taxes in years 4-7

4) Basically free rent at the industrial parks which have every imaginable resource an entrepreneur would need.

5) Assistance in finding local talent.

6) Guaranteed employment for one’s spouse.

The program also offers many other small benefits.

Mark’s migration in itself would not be significant, if I had not met over 10 ex-patriots in the past week, all educated in the United States, who told me similar stories.  Like electricity that follows the path of least resistance, talent tends to follow the path of opportunity.

The governments of the past have competed over real estate and natural resource. Today, there is a quiet unknown battle brewing to attract and maintain the most valuable resource in the world: Knowledge.

The following is one of a series of blog post that were written while I was in China in the spring of 2009 as part of my Eisenhower Fellowship. If you have interest in China’s culture I think you will enjoy this series.

Next Stop China

24 hours later, and I am in Beijing.

My two year old girl’s name is Elena. She is temperamental, commanding attention at all times. Fearless, with no sense of apprehension, yet affectionate and extremely loving. Each morning she wakes at 6:00 a.m., quietly climbs into bed and pokes either my wife or I until someone says something to her. Then she just giggles.

In the last year I can not remember being away from her for more than 2 nights in a row. As I sit in my Beijing hotel tonight, I realize it will be 31 nights until I see her again.

I believe one of the most difficult challenges parents face is balancing their own personal goals and ambitions with the needs and desires of their children. It is a constant juggling act where parents try to ensure that they have a healthy sense of self-fulfillment, while at the same time engaging in their children’s lives. Like all Eisenhower Fellows, when I decided to apply for the fellowship I was aware of the sacrifices it might entail.  Still, my wife and I determined that the rewards outweighed the costs.

The cost of a month without my daughter is high. I accept this reality not as a negative, but a reminder and motivator to ensure that I utilize this time wisely.

The schedule in front of me is packed from dusk to dawn with some of the most influential and accomplished leaders in the region. I suspect the month ahead of me will be one of the most exciting and educational of my life. I hope to be able to translate my experiences here into tangible results for our region when I return: to find better ways to get businesses off the ground; to develop more efficient means to help young companies grow;  to develop a network to assist in recruiting top companies and talent to our region.

This is an incredible reward and I am eternally grateful to all those who have made this possible, from the trustees to the Eisenhower Fellowship team. And a special thanks to Erin and Julia who have put in tireless hours over the past several months coordinating my program. Thank you, thank you, thank you!