Chinese merchant manuals and entrepreneurship education

Abstract

Chinese merchant manuals emerged in the late Ming dynasty and became a valuable source of business education in imperial China. These manuals have been analysed by academics for a number of purposes including the technical side of merchant operations, charting commercial change in history and changes in merchant thought. However, they have not been analysed for their relevance to entrepreneurship education. This paper draws on translations of merchant manuals to explore their relevance for modern entrepreneurship education, with a particular focus on the late Ming dynasty manual Shanggu Xingmi (Solutions for Merchants) which was published in 1635. Although set within a Confucian value system, and focused on merchants (traders) not producers, the manuals address issues of importance to entrepreneurs operating a business within any context. Topics of importance include budget management, contractual relationships, market instability, staff management (including hiring, discipline and training), reputation (brand) management, risk management, timing of action, ethics and morality, avoiding temptation, and the importance of industry knowledge, or what Warren Buffett would call your 'circle of competence'. The paper finishes with a discussion on the relevance of this knowledge to modern texts on entrepreneurship and small business management. Despite the different in time epochs, many of the basics of business remain the same today. Hence, this paper asks if modern entrepreneurship education gives enough attention to the basics of business. This paper concludes by asking whether contemporary entrepreneurship education pays sufficient attention to contractual relationships, budget management, and the dangers and traps of unstable business environments.