11/11/2010
About BENCH-project
Results of BENCH-Survey
Presentation prepared by
Ya Zhang (PhD Candidate)
Anna Öhrwall Rönnbäck (PhD, Assistant Professor)
CAM – Center for Applied Management
Linköping University
•
•
•
BENCH – Beneficial Business Relations between the Central Baltic Region and China
– a project funded by EU ‘CENTRAL BALTIC INTERREG IV A PROGRAMME’ from 2010 to
2013.
The aim of BENCH is to create a better condition for conducting business with China
through cooperation among Central Baltic regions.
– The project has a main focus on SMEs, which are interested in doing business with
China.
– BENCH is carried out by collaboration in three regions -- (Östergötland in Sweden,
Aalto-region (Helsinki) in Finland and Estonia).
The goals of the project:
–
–
–
to spread knowledge about SMEs business development with China,
to find good methods in order to attract Chinese investment in BENCH regions
to improve working practices in the regions for creating business opportunities through better
handling business delegation visits from China.
Survey Purpose
• To map small and medium enterprises
(SMEs), who are interested in getting
supports to do business with China in
the region.
– Understanding current situation about SMEs’
business development potential with China
– Mapping potential companies
– Identifing needed supports
Three survey questions
1. Are you currently doing business in China or with
Chinese companies?
– If Yes, what kind of business are you doing with China?
– If No, why not?
2. (If you answer ’No’ in Question 1)
Are you interested in doing business with China?
– If yes, what kind of offerings are you interested to supply
to China (or get from China)?
To/From whom?
– If no, why not? Please specify the reasons.
3. Are you interested in getting supporting services for
business operations with China?
– If yes, what kind of support would you need and from
whom?
– If no, why not?
Response rate
• The survey was sent to 1811 email addresses.
About 1615 companies (at least).
(Some email addresses can’t be related to companies’ name because they are from a database of an anonymous
survey regarding to ‘internationalization interesting’ from companies in Linköping and Norrköping Municipalities)
Survey respondents
Respondents categories
(Headcounts-based)
• 293 responses (appr. 16% response rate)
(There were 2 cases, in which two respondents , who are from same company answered the survey)
• Half of the responses came from companies
less than 10 employees
• A quarter of the responses came from
manufacturing industry and the rest of
responses are from other different industries.
12 2
4% 1%
Micro (1--10)
29
10%
– 50% are micro-size
SMEs (based on
headcounts)
– Four big groups (See
next page)
Small (11--50)
147
50%
103
35%
• 293 respondents
Medium (50--250)
Others (Daughter
companies)
I (Identicial)
C: MANUFACTURING
M: PROFESSIONAL,
SCIENTIFIC et al. ACTIVITIES;
G: WHOLESALE AND RETAIL;
J: INFORMATION AND
COMMUNICATION
1
11/11/2010
Survey respondents
Survey result – a snap shoot
Cont.
Respondents categories
(Industry-based)
P
2%
O
0%
Q
2%
T A B
0% 1% 0%
• 31 % are doing business with China.
• 40% of the 201 companies, which are
currently not doing business with China,
have an interesting to do so
• 44% are interested in getting support for
doing business with China.
A
B
R S
3% 3%
C
N
4%
C
26%
D
E
F
M
17%
G
H
D
1%
L
1% K
0%
J
10%
F
6%
I
H
3% 3%
I
E
3%
J
K
L
G
12%
M
N
O
Details – Question 1
Others
Small (11-- Medium (50- (Daughter
50)
-250)
companies) I (Identicial)
Total
1. Are you currently doing business in China or with
Chinese companies?
Answer:
31,4% (92 of the 293 responses) are doing
business with China
• Broken down by size (headcounts):
37 micro-size companies (1-10 employees)
33 small companies (11-50 employees)
15 medium size companies (51-250 employees)
7 other companies (subsidiaries of big companies)
Micro (1-10)
–
–
–
–
• Main business areas (these 92 companies):
– Mainly in Manufacturing(41%), Wholesale and Retail trade,
Repair of motor vehicles and transportation (22%), and
Consulting (12%)
S;R;2%
0%
Q; 2%
P;
N; O;
1%
3% 0%
Doing business with
China (Yes)
A; 0%
T; 0%
B; 0%
A
L; 0%
K; 1%
C; 41%
C
18
18
7
1
9
No
1
4
Yes
Others
(Daughter
companies)
G
G; 22%
D; 1%
F; 1%
E; 2%
H
I
S; 2%
Q; 2%
T; 0%
A; 0%
A
B; 0%
B
N; 3%
C
D
12 7 5
Y
L; 0%
K; 1%
E
M; 12%
C; 41%
29 15 14
J; 9%
H
I
I; 1%
103 33 70
F
G
N
J
H; 1%
K
G; 22%
L
D; 1%
147
36 111
E; 2%
100
200
300
M
N
O
400
– If yes, what kind of offerings are you interested to supply to
China (or get from China)?
To/From whom?
– If no, why not? Please specify the reasons.
Answer:
C; MANUFACTURING
30
25
20
15
10
5
0
R; 0%
P;
1%
O; 0%
Details – Question 2
19
E
F
Doing business with China
(Yes)
201
2 11
0
D
J; 9%
I; 1%
H; 1%
92
1. (If you answer ’No’ in Question 1)
Are you interested in doing business with China?
Micro (1--10) Small (11--50) Medium (50-250)
B
M; 12%
293
F; 1%
Result 1. Currently doing business with China
40
35
30
25
20
15
10
5
0
Grouping (92) based on
industries
31.4% respondents (92/293)
are doing business with China
40,3% (81 of the 201) companies, who are not doing
business with China, are interested in doing so.
12
• Broken down by size (headcounts):
15
2
3
1
1
Micro (1--10) Small (11--50) Medium (50-250)
No
1
Others
(Daughter
companies)
G; WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR
VEHICLE
Yes
–
–
–
–
53 micro-size companies (1-10 employees)
22 small companies (11-50 employees)
5 medium size companies (51-250 employees)
1 other company (subsidiaries of big companies)
• Main business areas (these 81 companies):
– Mainly in Consulting (23%), Manufacturing(15%), and
Information and Communication (11%).
2
11/11/2010
Othe
rs
(Dau
ghte
Medi r
I
Micr Smal um com (Iden
o (1- l (11- (50-- pani ticial
-10) -50) 250) es) ) Total
Result 2. Not currently doing business with
China but interested in doing that
293
201
2
1
12
5
29
14
103
70
147
Not yet
111
81
P
3
4%
O
0
N 0%
4
5%
120
I (Identicial) 1
Others (Daughter
14
companies)
Q
S A B
1 R
4 1 0
1% 5
6% 5% 1% 0%
C
12
15%
Micro (1--10)
53
50
100
150
200
C
H
I 2
5 2%
6%
L K
1 0
1% 0%
58
B
F
5
G 6%
6
7%
No
21 49
A
D
0 E
0% 4
5%
J
9
11%
Yes
Small (11--50)
– If yes, what kind of support would you need and from
whom?
– If no, why not?
China Interesting (Yes)
M
19
23%
Medium (50--250) 59
0
3. Are you interested in getting supporting services
for business operations with China?
Yes
0 100 200 300 400
China Interesting
Details – Question 3
D
E
F
G
Answer:
44,0 % (129 of 293) are interested in getting
support for doing business with China.
H
I
J
250
Result 3. Not interested in getting
– why not?
Result 3. Interested in getting support
• Wanted support…
Ex. Contacts; network; financial
support and so on.
Reasons (ex.)
Support wanted
Contact network and info about which
general rules that could apply...
o Find the right partners in China 1. for
sales of our products to the quickly
growing market ...in China
2. to source components/producation in
China for us. Support in gaining
knowledge of the different ways of
doing business in China, and support to
get the right contacts in China on
different levels.
o Financial support ... Ex. from SIDA, EU
or Regional Government...
o Find interesting customers and get
assignments from them...
support
129
•
o
•
I (Identicial) 1
Others (Daughter
3
companies)
Yes
No
Medium (50--250) 10
•
•
Small (11--50) 40
•
Micro (1--10)
•
75
0
100
200
300
Concerns about IPR in China
Due to limited resources
• “Since our company is relatively small (have tiny
resources), I estimate that we do not have
possibilities/knowledge to conduct these businesses on our
own, but are in need of external help”
”No intention to enter Chinese market/not now”
Local service providers with difficults of geographic distance
”Hard to se what we could do”
”Already have subsidiaries, network and contacts in China”
400
Tack så mycket!
Ya Zhang, ya.zhang@liu.se
Anna Öhrwall Rönnbäck, anna.ohrwall.ronnback@liu.se
CAM at Linköping University
in cooperation with
County Administrative Board of Östergötland
Center for Environmental Technologies, Östergötland
Östsam Regional Development Council
3