Born out of networks: A sociological analysis of the emergence of the firm

China currently has more than 8 million small and medium-sized compa-

nies; a majority of them are family businesses and private enterprises coming to life in the post-1980 reform era. As of 2002, these firms accoun-

ted for approximately 60 percent of the country’s GDP, 40 percent of the

national revenue, and 75 percent of non-agricultural jobs (Wu 2003:181).

Each year, hundreds of thousands of new firms have emerged. Although a

good number of them have been short-lived, many have survived and grown

rapidly in an increasingly competitive market economy.