hi prchunter,

I think before great ideas and splendid execution is the question of: Is there a level playing field in Kunming for all entrepreneur (local or foreign). Otherwise, if it is still a protectionist environment then there is really no point in discussing about entrepreneurship in Kunming for foreigners. I think we are not talking about multinational companies here but SMEs.

Unless, the local government makes an effort to make the business environment fair for both local and foreign businessmen, then foreigners must stop day-dreaming of putting-up a business in Kunming. It's a waste of time, money and effort.

Foreigners might have to be just contented with teaching English and in enjoying the wonderful city attractions, tourist-friendliness and pleasant year-round weather Kunming has to offer. No more, no less.

@yuantongsi - thanks - forgot about the vacuum packing & stuff - but 9-12 months - that's incredible.

@prchunter
Kunming suffers from brand malaise - there are chain convenience stores - just not a lot - and there are trillions of mom n pop convenience stores selling drinks & snacks with dubious expiration dates.

For ideas on bigger projects - go visit any of the "investment" agencies around Kunming, Dianchi, etc - they have a laundry list of projects they'd like to bootstrap in or around Kunming - but they're also looking for inbound investment...

@light
The business environment is what it is. I find that it's usually easier to make money in an unfair and hostile environment as the deep pocketed competitors tend to shy away from this market. The key is to be able to navigate in said environment to a point where you can make money where your competitors can't. Usually the main problem for foreigners is the language barrier. Once you have that down pat, being a foreigner actually offers an advantage over locals. Ideally, you want someone with the professionalism of a foreigner and the connections of a local.

@laotou
The one chain convenience store that I've seen is still tiny and not on the same level as convenience stores in say Shanghai or Guangzhou. The mom n pops are not really competiton, as these are the first to fold up once you build up any semblance of scale. You are right to visit the trade office for bigger projects as local officals are measured by how much capital they can bring in and thus very eager. You'd have to invest at least 10mil RMB. Any amount under that and they won't give you the time of day. Looking at the city and knowing what I know... this city will witness a huge transformation in the next 10-15 years not unlike what Shanghai has seen from the 1995 - 2011. Back then Shanghai only had one CV brand which was Lawson's and they didn't have many locations. People thought that Shanghainese suffered from brand malaise also... guess what happend in the next 10 years.

I think someone said it. The Kunmingers lack drive. Most of the growth from ASEAN trade is already going to Chengdu, as they are more active.

Another thing. The term SME may be being misused here. My understanding of an SME is 200-6000 staff. At least 200 staff is a bigger scale than most of us envisage.

I agree with PRC. In any freshly developing area the business environment is bound to be "protectionist" with many unidentifiable "barriers to entry". That said, the reason why I put the barriers in quotations is because it's not really the same barriers that you find in MBA case studies such as Nestle trying to enter a market where there are established confectionary companies.

It's more, like PRC said, navigating and adeptly learning the local environment and injecting outside expertise, an advantage few locals have, to build a profitable business. Any who, ideas are just ideas. Tons of people of tons of million dollar ideas. Only the very few who have the guts and the real know-how will profit from them. I'm a big supporter for sharing ideas, even my own. Because if someone else can do it better or just tries to do it and succeeds over your own efforts, whether it is just idea squatting or failing to execute, he deserves the penny and you don't. Not saying you can't learn from it and try again...

Either way, as the airport opens up and more media coverage spreads these select enterprising individuals, both local and international, will flock here and take over. So gather your beans and have them in order bc if you want to be a successful entrepreneur here you better be on your game!

I follow socaliente on that last point.
Step 1 : Having THE idea.
Step 2 : improve the idea
Step 3 : implement the idea
Step 4 : run your profitable business
The environment difficulties in Kunming must stop most of entrepreneurs between Step 2 & 3.
However, after meeting many guys with the billion dollar idea, or the best product idea ever, I realized they often stick to step 1 and never go further...
Why? Because :
1)Afraid to share more because of future great competition threat (which often lead to inaction because it implies support absence)
2)They can't admit to themselves but they are lazy. So between an idea and its implementation, some heavy preparation must be done.
On that last case this is where I distinguish the real Entrepreneur Spirit to the Entrepreneur Image some tricky people use on purpose to describe themselves (but it would always remain as a dream for them..)

I think there are potential entrepreneurs who have the desire to do business. And that is where most people stop.
The Having the idea is OK, but many ideas are not well conceived (step 1 above), i.e. the idea is not good. A great dream perhaps but often unworkable. You only have to watch some ideas on Dragons Den to see this, and those are the ones that get through.

There are also many ideas that are not implementable (step 3) i.e. not well thought through from the beginning. Not with the best skills and strongest will in the world. Even Alan Sugar has had a few lemons.

The four steps are the way to go, but they are not guarantee of success. If it was that easy, there would not be so many start-ups that fail in year one (did someone say 90%).
You hear many cases of the Chinese who got rich. They make sure we know by buying the big house and car. but we don't often hear about those who lose everything in their business ventures.

I think the key thought to have in mind when starting a business is not, 'How much money can I make?'. The question should be, 'How much can I afford to lose?'. That way if it does go bad (and it looks like 90% do) you have a jump off point and you get to keep your shirt, and your house.

The positive thinkers will argue that you should only plan for success. However the positive thinking 'gurus' have lost a lot of credibility in business, and self help writing, circles since the financial crisis of 2008. Because few companies had planned for failure.

While I disagree with some of the perspective given on Kunming's current and future market, I am more interested in actually hearing from persons or groups that have a concept or business plan on paper and are seriously looking for capital, commercial real estate, and/or licenses.

I am just merely interested in having discussions at this point, as one interested entrepreneur to another. Considering we all want to make Kunming a better place, promoting small business from a diverse expat community is a great way to start. PM me.

tigertiger

I agree. I think doing business anywhere in the world, being pragmatic is the safest way to go. Yes, with Kunming's current business environment for foreigners the question "How much can I afford to lose" is the most realistic approach. It's all about calculated risk right? With 10% success rate are you willing to gamble?

We foreigners I think should be reminded that the Chinese people has been doing business for around 3,000 years already. And that the current global business model is based on a approximately 500 years of business experience from the west. 3,000 is definitely much greater than 500. If we talk about wisdom in business I believe the Chinese people has more than we have initially presumed.

The most important thing is to have the right attitude and realistic expectation, then ideas and implementation follow.

One thing to remember is that there were no private business/businessmen in this country before 1978. When dealing with Chinese customers/suppliers its a good idea to remember that. Private ownership of property is also a new thing in China.