The Formation of Wenzhou Footwear Clusters: How Were the Entry Barriers Overcome?



Total            140       5048       2.77%         3       3500        427         531

* The final footwear products including leather shoes, leisure shoes, safety footwear and children's shoes etc.

** Number of the employers at the end of 2004.

Source: Field survey by authors.

3. Overcoming technology barriers

3.1 Features of the Entrepreneurs

Table 3 displays the number of sample enterprises, the average years of schooling and years

of Chuangdang7of the founders, and the composition of their occupational backgrounds at the
time of their entry into the footwear industry.

Table 3 Characteristics of enterprise founders

1980 and before

1981-1985

1986-1990

1991-1995

1996-2000

2001-2005

No. of enterprises

4

18

27

31

38

22

Years of schooling

6.25

7.97

8.02

9.03

9.70

9.18

Years of C huangdang

Occupation 1( %)

5.00

7.38

8.50

9.68

11.16

14.53

Farmers

0.00

11.11

18.52

16.13

13.16

13.64

Factory works

50.00

27.78

37.04

29.03

13.16

9.09

Salesmen of trades

25.00

33.33

25.92

35.48

50.00

54.54

Engineers

0.00

16.67

0.00

6.45

10.53

9.09

Managers

25.00

11.11

7.41

3.23

5.26

13.64

Others

Occupation 2( %)

0.00

0.00

11.11

9.68

7.89

0.00

Related to footwear

industry

Occupation 3( %)

75.00

77.78

22.22

48.39

42.11

59.09

Capable of Footwear
making technique

75.00

94.44

62.96

80.64

65.79

63.64

Source: Based upon the data from authors’ field survey in Wenzhou.

Years of schooling and years of Chuangdang are the average s of each respective group.

Several interesting facts emerge from table 3: (i) At the beginning of opening and reform,
newcomers in the Wenzhou shoemaking industry increased rapidly and this trend lasted until the
end of the last century. (ii) The years of schooling of the founders increased gradually along with
the increase of the average education level in Wenzhou . This result corresponds to those of Sonobe,
Hu and Otsuka (2004) in their inquiry into the Wenzhou low-voltage electric appliances cluster.
(iii) Before setting up their own enterprises, newcomers typically left home and worked elsewhere
for many years and accumulated an increasing amount of non-local working experience which
gradually exceeding the years of schooling in the mid 1980s. Certainly, this was critical for the
formation of the footwear cluster. Hu (2002) argued that market demand and obtaining

7 This refers to joining armies, doing business or working away from home. After leaving school, Wenzhou people
tend to work or learn to do business across the country, as is an very important feature of Wenzhou people.

Through these non-local experiences, they may accumulate human resources and social capital, and obtain
precious market information.



More intriguing information

1. Fiscal federalism and Fiscal Autonomy: Lessons for the UK from other Industrialised Countries
2. Social Cohesion as a Real-life Phenomenon: Exploring the Validity of the Universalist and Particularist Perspectives
3. Nietzsche, immortality, singularity and eternal recurrence1
4. CONSUMER ACCEPTANCE OF GENETICALLY MODIFIED FOODS
5. Skills, Partnerships and Tenancy in Sri Lankan Rice Farms
6. Outsourcing, Complementary Innovations and Growth
7. A Bayesian approach to analyze regional elasticities
8. Howard Gardner : the myth of Multiple Intelligences
9. TWENTY-FIVE YEARS OF RESEARCH ON WOMEN FARMERS IN AFRICA: LESSONS AND IMPLICATIONS FOR AGRICULTURAL RESEARCH INSTITUTIONS; WITH AN ANNOTATED BIBLIOGRAPHY
10. Conditions for learning: partnerships for engaging secondary pupils with contemporary art.
11. Commuting in multinodal urban systems: An empirical comparison of three alternative models
12. PERFORMANCE PREMISES FOR HUMAN RESOURCES FROM PUBLIC HEALTH ORGANIZATIONS IN ROMANIA
13. The name is absent
14. NATURAL RESOURCE SUPPLY CONSTRAINTS AND REGIONAL ECONOMIC ANALYSIS: A COMPUTABLE GENERAL EQUILIBRIUM APPROACH
15. Economies of Size for Conventional Tillage and No-till Wheat Production
16. The name is absent
17. The name is absent
18. The name is absent
19. Federal Tax-Transfer Policy and Intergovernmental Pre-Commitment
20. Sex differences in the structure and stability of children’s playground social networks and their overlap with friendship relations