WB:
There seems to be some fear associated with China as the new super power … What do people/companies need to know in order to “embrace” the situation at hand?
ED:
This is exactly the question I will ask the attendees who come to my conference in June … The whole purpose of our gathering will be to approach the topichead on. I have more questions than I have answers. This is why I look forward to learning from the people who know better than me. In any case, we can no longer ignore this question about China. It is important to approach it, to enter the unknown.
For me, everything we do in business has a sort of Chinese flavor to it now … whether we like it or not. …
WB:
So, there are lessons to be learned from this nation?
ED:
I’ll give you an example: I was recently in China – presenting to a group of students about entrepreneurship. … what makes a startup company successful. As soon as my talk was finished, I found myself surrounded by hundreds of people, pushing their business cards to me, asking me questions.
I've given similar talks here in Germany. Rarely does anyone approach me. I observe that Germans and perhaps Europeans in general are more shy, more relaxed. I think the lesson is about attitude. Europeans tend to be too slow to react to opportunity, while the Chinese are more aggressive and ambitious … striving to succeed. Soon, it's possible that the Chinese entrepreneur will do it better.
WB:
What else does this so-called “China Question” mean for European innovation?
ED:
Recently, I read that China has not only surpassed Germany as the biggest exporter (including more Chinese cars, believe it or not), but also will be the world’s largest importer! That means China is no longer just a source for cheap products and labor. It also means that there is an opportunity there to sell. … They are the new Americans in a way, consuming at a startling rate.
So, for Europe, because we are still a better source of creativity, we need to seize the moment and not give things away for free! The only way to do it is … Just Do It! Go to China and you will make 100s of contacts. It is still difficult to make money in China because they tend to “keep the good stuff” for themselves. You need a local presence to do business the right way. But this may change.
WB:
What kind of effect does government have on how business is being done in China?
ED:
Because of they are not a democracy, things get done much more quickly! Mostly in response to the demands of the West, China has made quick decisions. … often overnight. They don’t need the voting and long processes we do in democratic societies in order to make change. Because of that they have moved incredibly fast and become world leaders in many things… from solar energy panels to cars! In fact, they are becoming leaders in making the world a better place. They’re independent, and they understand the benefit of being less dependent on oil, for example.
They have also made it one of the top three government priorities that people learn English. … Three years ago no one spoke English to me. I needed an interpreter everywhere I went. This year, virtually everyone spoke English. Clearly, this is critical for business.
WB:
What else is Hasso Plattner doing to "embrace" the so-called economic rise of China?
ED:
Currently, HPV has 17 portfolio companies that are interested in doing business in China. We are setting up a branch in China and working with local companies. We have an IPO in progress in Hong Kong right now.
WB:
Switching gears now, before I let you go, talk to me a bit about social entrepreneurship. I know it is more than business for you. It is a passion.
ED:
Well, let me define it first a bit. First thing is that good investments or donations should be on sustainable terms. This means that instead of just giving money to (those in need), we need to give them tools to create projects that are locally sustainable. Otherwise projects will die. Projects should be managed locally. This gives them revenue-generating potential.
WB:
Can you give me an example of a project you've been involved in that has been particularly successful?
ED:
Of course. … The Homeless World Cup … a beautiful organization. Every year (since 2003) the games are hosted by a different country. The organization has literally taken thousands of people off the streets and given them purpose. 80 percent of them have been converted to normal life. And hundreds of thousands of people and companies are contributing. I recently met one team member in particular. He is just 22, and spent 11 years of his life in prison. Now he’s captain of a national team and he says to me, “You saved my life. I was nobody, now I’m a man. …” I was and am so moved.
The rewards from this kind of activity are far greater than money. With very little money, and a few contacts, I can have the power to change lives. … You don’t have to change the world. But to help a few. I sleep at night because I am able to do this.