The role of guanxi in Chinese entrepreneurship.

Although networks are widely recognised as improving entrepreneurial performance, China \nwhich is seen as a traditional Confucian society, has a unique form of networking, guanxi - \n“special relationships”. These guanxi networks were seen as a social means to overcome \npolitical, economic and legislative obstacles to enterprise. Yet China has recently enjoyed \nexceptional entrepreneurial growth, shaped, in part, by exposure to the west. In turn, this may \nhave changed the traditional attitudes and applications of guanxi in modern China. Accordingly \nthis paper explores the current entrepreneurial use of guanxi in China. \nWe adopted a survey technique, gathering largely qualitative data from Chinese entrepreneurs. \nThese data were about the current importance, application and utility of guanxi. We present the \ndescriptive data and illustrative comments so substantiate our analysis. \nWe found that guanxi was still pervasive and widely used. Many respondents felt it was an \nessential part of business but few entrepreneurs enjoyed using guanxi. Nonetheless, for them, \nguanxi is based on trust and friendship.