Entrepreneurs and Enterprises in Macau

Entrepreneurs and Enterprises in Macau: A Study of Industrial Development

V.F.S. Sit
R.D. Cremer
S.L. Wong
Copyright Date: 1991
Pages: 160
https://www.jstor.org/stable/j.ctt2jc32j
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  • Book Info
    Entrepreneurs and Enterprises in Macau
    Book Description:

    This book provides an investigation of Macau’s industrial fabric as well as its framework of economy. Particular attention has been given to the form and function of the small and medium industries in Macau’s economy. Topics coyered include the post Second World War industrialization process; characteristics of the entrepreneurs – their social origins, educational background, career patterns, management style, and self assessment; general business characteristics of the enterprises – their histories of establishment, size, financial and management control, technology employed, products, and marketing; subcontracting relationships between small and medium firms and larger firms; out-processing relationships with Hong Kong and the Pearl River Delta; industrial policies of the Macau Government; and finally a summary of the main findings and suggestions of policies concerning the future development of the manufacturing industries.

    eISBN: 978-988-220-123-1
    Subjects: Business

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-viii)
  3. List of Tables
    (pp. ix-xii)
  4. List of Figures
    (pp. xiii-xiv)
  5. Part I: Subject and Scope of the Study
    • 1. Introduction
      (pp. 3-8)

      In recent years there has emerged a strong interest in the role and functioning of small and medium industries (SMI) within the broader context of macroeconomic and macrosocial systems. In developing countries particularly, the role of small businesses in economic development and in the industrialization process is receiving vigorous academic and policy-oriented attention.

      Much of the research that has been done tends to pursue a macrolevel orientation focusing on the contribution of SMI to industrialization and modernization; their impact upon the labour market; the part they play in the effective utilization of available raw materials and resources; their function in...

    • 2. The Economy of Macau
      (pp. 9-30)

      Macau lies to the eastern side of the Pearl River Delta. With a total land area of just about 16 sq km, it is composed of the Macau Peninsula (5.5 sq km) and two islands — Taipa Island (3.38 sq km) and Coloane Island (7.16 sq km) (Fig. 8.1). Both population and economic activities are largely concentrated on the peninsula giving rise to one of the highest population and industrial densities in the world. Macau’s population in 1989 was estimated to be around 443,500, about 95% of whom are Chinese. More recently, industrial development and residential construction have spread out...

    • 3. Research Methodology
      (pp. 31-40)

      The data for this study were to cover both the macro- and the microdimension of Macau’s Manufacturing Sector.

      For the macro part of the study, which is the smaller and less original part of this study, statistical data published by the Census and Statistics Department of the Macau Government were largely used, as well as published literature and official documents. In addition, a series of interviews with government officials and local industrial leaders were conducted, to gain a wider perspective and more insight for the review of Macau’ s industrialization process, on the related official policy and the prospects for...

  6. Part II: Entrepreneurs and Enterprises
    • 4. A Collective Portrait of the Entrepreneurs
      (pp. 43-54)

      The focus of this chapter is on the entrepreneurs who are residents of Macau. But in some ways, Macau is serving as an outward processing centre for Hong Kong industry, and quite a number of the factories in the territory are subsidiaries set up by Hong Kong industrialists. In our survey, interviewers were instructed to obtain information directly from the factory owners. Because of this approach, our sample was made up of entrepreneurs who were physically present in Macau at the time of interview, and a sizeable proportion of entrepreneurs with operations mainly based in Hong Kong were not covered....

    • 5. Social Origins
      (pp. 55-68)

      In the last chapter, we identified the major characteristics of the Macau entrepreneurs at the time of interview. But we still do not know what kind of background they have and where they come from. In order to have a better understanding of the evolution of these entrepreneurs, we need to look into their past and trace their origins both geographically and genealogically. We first examine their place of birth and the period in which they arrived in Macau, and then analyze their family background in terms of their rank among their siblings, and the occupations of their grandfathers, parents,...

    • 6. Training and Recruitment
      (pp. 69-84)

      With the social characteristics and origins of the entrepreneurs in mind, let us now examine the process of their induction into the entrepreneurial role. In order to identify the factors affecting their choice to become owners, the type of preparations they have undertaken, and their particular strengths and weaknesses, it is necessary to probe into their educational attainment, career history, family circumstances, and subjective motivation for ownership.

      In our Hong Kong survey, we find that the entrepreneurs are relatively well-educated as a group among the general population. But they do not have the right kind of educational credentials which are...

    • 7. Management Style and Self-assessment
      (pp. 85-96)

      In this chapter, we first consider the management style of the small owners in terms of their conception of a successful businessman, their preferences for proprietorship and partnership, their approaches to decision making, and the extent of their community participation. After that, their subjective evaluation of their own standing in life is examined.

      Contrary to the popular stereotype of the entrepreneur as profit-oriented, risk-taking, and anti-traditional individuals, the small industrialists in Macau extol conservative values of hard work and dependability. Imbued with the work ethic, they are stability-oriented operators instead of adventurous businessmen. When they were asked about the ideal...

    • 8. General Business Characteristics
      (pp. 97-112)

      In this section we shift the focus from individuals to organizations, i.e., from the level of the entrepreneurs to the level of the enterprises which they own and manage.

      The objective of this section is to analyze the type and structure of industrial establishments that have emerged in Macau. The interpretation and analysis of the data from the field survey look at different broad categories of business characteristics.

      Firstly, the emergence and the age structure of industrial establishments are scrutinized. Secondly, various dimensions characterizing the size and nature of the establishments, including their workforce, their turnover, and also the kind...

    • 9. Capital, Labour, and Technology
      (pp. 113-134)

      The objective of this chapter is to analyze the productive resources of manufacturing establishments in Macau.

      Common practice as well as theory suggest the analysis of the factors of production under the headings of capital and labour. The emphasis on capital and labour is not only justified analytically, but also from the subjective point of view of the factory owners.

      Table 9.1 discloses the responses to a question concerning actual limitations and constraints felt at the time when the business was started. More than half of the interviewed factory owners (53.0%) reported that lack of capital or labour posed the...

    • 10. Products and Market Access
      (pp. 135-144)

      In 1988, slightly more than one third (34%) of Macau’s exports were shipped to the USA. This share has increased a little over the past four years. In 1988, exports to the EC accounted for an estimated 36% of total exports, with France, West Germany, and the UK being the most important markets. Suprisingly, exports to Portugal accounted for less than 1% of Macau’s export trade only. Increases in exports to the EC countries are partly the result of high price competitiveness due to continuing depreciation of the Pataca and Hong Kong Dollar against European currencies. EFTA countries absorbed 3.7%...

  7. Part III: Industrial Organization, Economic Development, and Economic Policies
    • 11. Subcontracting as an Industrial Organization System
      (pp. 147-162)

      In the preceding Section II, indirect reference has been made to the industrial organization system that has accompanied the industrialization process in Macau and still prevails. For instance, we have seen that most of the products produced in Macau are exported under the brand names of other, usually non-local, firms. We have also seen that local manufacturers exert little influence on the design of their products and the production processes they use. Many of these genuine entrepreneurial tasks are carried out by ‘others’. It is obvious that these arrangements form a significant feature of the industrial organization system in Macau....

    • 12. Interfirm Relationships as a Development Pattern in Macau
      (pp. 163-174)

      The issue of subcontracting relationships and similar forms of non-market relationships between companies has attracted considerable interest in recent years again. Some authors go so far as to suspect that ‘subcontracting’, ‘networks’, ‘relational contracting’, or ‘relational exchange’, as these non-market linkages are called, may be so dominant especially in East and Southeast Asia that traditional market theory, taught as part of any economics syllabus at secondary and tertiary levels, may in fact be inappropriate in helping to understand or in providing any meaningful analysis of the economic problems emerging from these relationships. They believe that network relationships constitute a distinct...

    • 13. Government Policy on Industrial Development
      (pp. 175-200)

      With the Portuguese Constitution of 1976, which followed the Portuguese coup d’ état on April 25, 1974, Portugal formally relinquished Macau as an Overseas Province and recognized it as a Chinese Territory under Portuguese Administration (Afonso and Pereira, 1991; Wong, 1986). Portugal then promulgated the ‘Organic Statute’ (Estatuto Organico de Macau), setting out a new system of Government for Macau which gives the territory a limited degree of self-rule and a partially elected legislature.

      Within Macau, the Governor, who is appointed and dismissed by the President of the Republic and is responsible to him, dominates the Government of the territory....

  8. Part IV: Conclusion
    • 14. Summary and Suggestions
      (pp. 203-212)

      Before the Second World War, the geopolitical setting of Macau had generated a peculiar economy based on traditional, locally oriented industries. Modernization and industrialization in the post-war period have revolutionarily changed the nature of Macau’s economy, turning it into a modern economic growth centre based on light industrial products for export markets. In the last two decades, this economic revolution has changed the cultural, social, political, and physical identity of Macau, which used to be described as a ‘sleepy port’, beyond recognition. The present study looks into the structure and development of the industrialization process, which have produced these changes....

  9. Appendices
    • Appendix A Joint Declaration of the Government of the People’s Republic of China and the Government of the Republic of Portugal on the Question of Macau
      (pp. 213-230)
    • Appendix B Small Industry Survey in Macau, 1987
      (pp. 231-256)
    • Appendix C Large Industry Survey in Macau, 1987
      (pp. 257-264)
  10. Bibliography
    (pp. 265-269)