Private Businesses Thriving in China

SHANGHAI, China - Tiffany Ding is a wife, mother, and successful entrepreneur. Her company, RetailLook, has grown 150 percent in just three years, and shows no signs of slowing down. "My company goal is very aggressive, sort of tough," Ding said. "It's incredible and unbelievable, but we did it." Tiffany's lifestyle working with high fashion cosmetics is a far cry from the bland Mao suits of China' s recent past. Just 30 years ago, state-owned enterprises and communal farms employed more than 99 percent of China's workforce. Today China has more than 26 million private businesses, with new ones opening daily. Tiffany says her parents, who worked for state-owned enterprises, have trouble relating to her success. "My parents, when they see my daily life, wow! You're so young, you have two houses, you have your own car, your kid goes to the American school and you pay $2,000 a month. And they think crazy," Ding said. "I just tell them when you put in a lot, you can gain a lot, and work hard you can get everything, so compared to me and my mom, I think society and the government is totally changed," she said. Ben Xu, managing director of Nautilus China, and Tiffany's husband, says that the growing number of private businesses has created many opportunities for China. "It's a gradual change, and as you can see, I think the private business is a significant portion of the whole economy," Xu said. "There's lots and lots of opportunity as we privatize the whole economy." Private businesses are thriving all across China. For example, ne lady here with her colleagues sells some of the best peanuts in town on one of the busiest streets in Shanghai. More than 20 years ago, operating such a private business, would have been considered illegal. But today, things are dramatically changing. According to the latest census, close to 150,000 private businesses are today operating in Shanghai alone. But despite these economic changes, many aspiring entrepreneurs have difficulty securing money to start a business. Dr. Jin Fang says that while the government encourages people to follow their dreams, securing finances can be difficult. "They can have a dream, and they have a lot of chance to make a dream to be true," Dr. Fang said. "Also in some parts, maybe they are difficult, of course especially for financial to get the loan." In order to start their new shoe polishing business, Mr. and Mrs. Xu depended on loans from friends and family. "The bank interest is very high, so I didn't get a loan, but just borrowed money from friends," Xu said. Xu started this business only a few weeks ago, and he charges basically about a dollar for a pair of shoes. He's excited about the new year ahead of him. But he is worried about the future, because this entire building charges about $700 a month in rent. Despite these challenges, the Xus looking forward to a better life in the future. "We want to have our own business, make money, and have a better life for our family by our own hand." Xu's wife said. "I'm happy to have my own business," Xu said. "Running my own business is much better than working for somebody else." And as more and more people start their own businesses, they can provide a better future for themselves, their families, and their country.