Abstract

http://ssrn.com/abstract=2015120
 


 



Informal Financing Model Based on Personal Relationship: Chinese Entrepreneurs in Brazil


Hsia Hua Sheng


Fundacao Getulio Vargas (FGV-EESP)

November 12, 2007

Revista de Administração Contemporanea (RAC), Brazil, Vol. 12, No. 3, July/September, 2008

Abstract:     
Differently of social tie that normally occur in Western country, the mutual trust and favor exchanged relationship that is quite common in China called guanxi. The Guanxi strongly influences on the Chinese’s businessman behavior. This is the base of informal financing models, which is one of the key factors responsible for small and medium enterprises (SMEs) growth in China. The objective of the paper is to analyze empirically guanxi-based model of informal financing in the Brazilian business environment. The exploratory method was applied, a sample of interviews with Chinese SME’s entrepreneurs in Brazil. The evidences suggests that i) the entrepreneurs uses guanxi to have accesses to informal financing and to reduce cost of financing; ii) The commercial credits and direct loan are heavily used by Chinese entrepreneurs and the bank short term loans are avoided; iii) the Brazilian institutional environment influences the models.

Number of Pages in PDF File: 15

Keywords: Informal Financing, Guanxi, Small and Medium Enterprises, Entrepreneurship, Brazil and China, Emerging Market

JEL Classification: J43, J61

Accepted Paper Series


Download This Paper

Date posted: March 4, 2012  

Suggested Citation

Sheng, Hsia Hua, Informal Financing Model Based on Personal Relationship: Chinese Entrepreneurs in Brazil (November 12, 2007). Revista de Administração Contemporanea (RAC), Brazil, Vol. 12, No. 3, July/September, 2008. Available at SSRN: http://ssrn.com/abstract=2015120

Contact Information

Hsia Hua Sheng (Contact Author)
Fundacao Getulio Vargas (FGV-EESP) ( email )
R Itapeva, 474 11º. andar
São Paulo, São Paulo 01332-000
Brazil
551137997769 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 319
Downloads: 18
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.391 seconds