Challenges of Economic Stress on Chinese Entrepreneurs and Their Families in Laos

Announcing: Walsh, John and Nittana Southiseng, “Challenges of Economic Stress on Chinese Entrepreneurs and Their Families in Laos,” Journal of Social and Development Sciences, Vol.2, No.1 (July, 2011), pp.31-7, available at: http://www.ifrnd.org/JSDS/Vol%202/2(1)%20Jul%202011/5.pdf.

Abstract: Chinese are increasing in number in Laos as new inter-governmental agreements permit labour migration for infrastructure development. Entrepreneurs have been accompanying migrants and establishing their own businesses, alongside the long-standing businesses established over the years by ethnic Chinese in the country. Many industrial sectors are involved. Problems that Chinese entrepreneurs might face include language issues and discrimination, as well as lack of business infrastructure and support services. Additionally, Lao consumers are primarily motivated by price alone and have little interest in exploring new brands or products. While these business management related issues are clear, what is not clear is the impact that conducting business on such a basis has on additional family members, who are also commonly employed within the business. Key informants were Chinese entrepreneurs and their family members in the capital city of Vientiane and they were interviewed personally with a view to understanding what stresses there may be on family members doing business in an environment which is not entirely friendly or welcoming, especially under conditions of global economic crisis. Competition is intensifying as increasing numbers of Thai and Vietnamese entrepreneurs are seeking to establish a foothold in the Lao market. Many Chinese entrepreneurs have, as a result of these changing conditions, been forced to offer better deals for customers, thereby restricting profits. This has had a follow-through effect on family members.

Keywords: Economic stress, Chinese entrepreneurs, Laos

Understanding and Strengthening the Health of Family Businesses in Laos

Announcing:

Walsh, John and Nittana Southiseng, “Understanding and Strengthening the Health of Family Businesses in Laos,” Information Management and Business Review, Vol.2, No.1 (January, 2011), pp.12-8, available at: http://www.ifrnd.org/IMBR/2(1)%20Jan%202011/Understanding%20and%20strengthening_health%20of%20family%20businesses.pdf.

Abstract:

More than 90% are family-businesses and are concentrated in retail, handicrafts, and personal services sectors. More than half are female-owned and managed, although baseline information about business and family management are limited. This paper reports on qualitative research aimed at understanding family business practices, impact of education in family businesses in a range of activities in Laos. Most such businesses remain based at or very close to home, and along the main road with any growth managed by hiring additional family members. Firms were run on traditional lines, while the management decisions were generally taken by senior family members depending on their existing prejudices. Although family businesses in Laos are still largely disorganized, they play critical roles in creating job opportunities and boosting household income for local residents as well as helping family members to utilize their existing talents, time, and resources. In promoting this sector, the Government of Laos has significant roles in developing policies, establishing a relevant governing agency, and encouraging training and involvement from the private sectors and from key international organisations.

Keywords:

 Business development, Entrepreneurial development, Family business, Laos, SMEs

Understanding and Strengthening the Health of Family Businesses in Laos

Southiseng, Nittana and John Walsh, “Understanding and Strengthening the Health of Family Businesses in Laos,” paper presented at the 3^rd International Conference on Lao Studies (Khon Kaen, July 2010).

Abstract

Small businesses in Laos are defined as having fewer than 20 employees, with total assets not exceeding US$25,000 and annual turnover not exceeding US$40,000. More than 90% are family-business and are concentrated in retail, handicrafts and personal services sectors. More than half are female-owned and managed, although baseline information about business and family management are limited. This paper reports on quantitative research aimed at understanding work practices, family issues and impact on education for principally female-owned small family businesses in a range of activities. Most such businesses remain based at or very close to home, with any growth managed by hiring additional family members. Firms were run on traditional lines, while workers were generally low-paid and low-skilled. Management decisions are generally taken by senior family members depending on their existing prejudices and distributing rewards based on relationships, honesty and loyalty. Although family businesses in Laos are still largely disorganized, they play critical roles in creating job opportunities and boosting household income for local residents as well as helping family members to utilize their existing talents, time and resources. In promoting this sector, the Government of Laos has significant roles in developing policies, establishing a relevant governing agency and encouraging training and involvement from the private sectors and from key international organisations.

 Keywords: Family business, Business development, Entrepreneur Development, Laos

Understanding and Strengthening the Health of Family Businesses in Laos

The schedule for the forthcoming Lao Studies Conference in Khon Kaen has been published. We have two papers scheduled to be presented and work continues with the data to make proper sense of what we found out thanks to K Nittana’s research. The abstract of the first one is:

Understanding and Strengthening the Health of Family Businesses in Laos

Nittana Southiseng[1] and John Walsh[2]

School of Management 

Shinawatra International University

Small businesses in Laos are defined as having fewer than 20 employees, with total assets not exceeding US$25,000 and annual turnover not exceeding US$40,000. More than 90% are family-business and are concentrated in retail, handicrafts and personal services sectors. More than half are female-owned and managed, although baseline information about business and family management are limited. This paper reports on quantitative research aimed at understanding work practices, family issues and impact on education for principally female-owned small family businesses in a range of activities. Most such businesses remain based at or very close to home, with any growth managed by hiring additional family members. Firms were run on traditional lines, while workers were generally low-paid and low-skilled. Management decisions are generally taken by senior family members depending on their existing prejudices and distributing rewards based on relationships, honesty and loyalty. Although family businesses in Laos are still largely disorganized, they play critical roles in creating job opportunities and boosting household income for local residents as well as helping family members to utilize their existing talents, time and resources. In promoting this sector, the Government of Laos has significant roles in developing policies, establishing a relevant governing agency and encouraging training and involvement from the private sectors and from key international organisations.

 Keywords: Family business, Business development, Entrepreneur Development, Laos

---

[1] Nittana Southiseng is a PhD Candidate at the School of Management, Shinawatra International University, Thailand. Email: nittana@siu.ac.th.

[2] John Walsh is Assistant Professor at the School of Management, Shinawatra International University, Thailand. Email: jcwalsh@siu.ac.th.