It does seem kind of crazy to those of us used to economies with fully developed institutions. However, China has large gaps in various institutions expected in

It does seem kind of crazy to those of us used to economies with fully developed institutions. However, China has large gaps in various institutions expected in the developed world. The ability to navigate institutional holes almost defines an entrepreneur in China. Keming Yang has written academically about the topic of institutional holes and double entrepreneurship. http://www3.interscience.wiley.com/journal/118763695/abstract?CRETRY=1&SRETRY=0 http://www3.interscience.wiley.com/journal/118763695/abstrac... That paper became part of his book Entrepreneurship in China. http://books.google.com/books?id=FNum2rdqCUkC&pg=PA53&lpg=PA53&dq=institutional+holes&source=bl&ots=7B-53ka3Yo&sig=Af41yM7AY-ewvlxpVNIKL4nIPPE&hl=en&ei=XeObSqaVJpmy8Qa6hPzFAQ&sa=X&oi=book_result&ct=result&resnum=2#v=onepage&q=institutional%20holes&f=false http://books.google.com/books?id=FNum2rdqCUkC&pg=PA53&#3... I wrote a paper on Chinese entrepreneurship last year -- it wasn't all that good, because it's basically 20 pages about Chinese entrepreneurship without much of a coherent point, but I could post it if anyone is interested.