How to Green the red Dragon: A Start-ups' Little Helper for Sustainable Development in China

Abstract

This article qualitatively identifies and explains the barriers that foreign cleantech start-ups can encounter when attempting to enter the Chinese market, as well as the possible strategies that can help overcome these barriers. We base our analysis on interviews with Chinese and foreign entrepreneurs and facilitators. To structure the analysis of such barriers, we use the components of the entrepreneurial ecosystem. We then explain the barriers using institutional theory. We demonstrate that they are caused either by the regulations in China or by the difference between Chinese and Western logics. We further recommend that cleantech entrepreneurs come prepared to China, remain flexible, associate themselves with reputable partners and take advice from those familiar with business in China. Cultural-cognitive barriers might be overcome by integrating the communities of foreign and Chinese start-ups. Regulative barriers can be removed by the Chinese Government, but this conflicts with the logic of state control.