Chinese-Australian entrepreneurs tap deep knowledge of local markets for success, study finds
- Chinese-Australian entrepreneurs are highly likely to have been educated in Australia as international students before starting their businesses, report says
- Nearly 70 per cent of the 100 businesses surveyed were classified as high growth, with an annualised growth rate of 20 per cent or more over a five-year period
Businesses run by Chinese-born Australian entrepreneurs have been some of the most successful in selling products to China because of their strong connections to the Chinese market, a new report has found.
The report, based on interviews with more than 100 Chinese-born founders of Australian small and medium-sized enterprises (SMEs), said that 71 per cent of these entrepreneurs started their businesses after completing their education in Australia as international students. The remaining Chinese-born business leaders arrived on skilled work or investment visas.
The study, the first to look at Australian businesses founded by Chinese-born entrepreneurs, found that nearly 70 per cent of these SMEs were classified as high growth, with an annualised growth rate of 20 per cent or more over a five-year period.
Their companies, from all industry sectors across Australia, contribute important economic benefits, bring diversity of thinking, innovation and growth to the Australian business landscape and offer an important bridge between Australia and China
“Our research has uncovered a large number of very successful businesses started and led by Chinese-Australian entrepreneurs, who were born in China but largely educated in Australian tertiary education institutions and shaped by Australia’s commercial landscape,” said Doug Ferguson, KPMG’s head of Asia & International Markets.
“Their companies, from all industry sectors across Australia, contribute important economic benefits, bring diversity of thinking, innovation and growth to the Australian business landscape and offer an important bridge between Australia and China.”
Much of their success can be attributed to an understanding of both the Chinese and Australian markets, said Hans Hendrischke, a co-author of the report and professor of Chinese and Business Management at Sydney University.
The businesses surveyed came from a variety of industries, including tourism, real estate, technology, manufacturing, mining and agribusiness, many of which have become large exporters of Australian-made products to China over a 20-year period.