China’s Cutthroat Start-Up Scene: The Rise of ‘Wolves’
In 2020, Olivia Yijian Liu, a Ph.D. student at the University of Oslo, embarked on a research journey to immerse herself in Shenzhen, a bustling tech hub in southern China. She was intrigued by the rapid growth of China’s high-tech entrepreneurship scene and the emergence of what would later be termed as “wolf culture.” Shenzhen, once a humble coastal town, had transformed into a hub teeming with entrepreneurs, venture capital investors, transnational corporations, and research institutes within a single generation.
The Rise of Wolf Culture
At the forefront of championing this aggressive “wolf culture” was Huawei, a telecommunications giant based in Shenzhen. Huawei’s founder, Ren Zhengfei, likened his management philosophy to the traits of wolves: keen senses, teamwork, and unwavering determination. This vision of the workplace as a competitive jungle soon permeated China’s tech scene, as startup founders pushed their teams to the limit in pursuit of success.
Critics of wolf culture raised concerns about the toll it took on workers, with long hours and high stress becoming the norm. Despite the controversy, the allure of emulating Huawei’s success drove many entrepreneurs to adopt this aggressive approach in hopes of achieving similar heights in the tech industry.
Exploring Wolf Culture
Olivia Yijian Liu delved into the origins and implications of wolf culture in her research conducted between 2020 and 2023. She engaged with entrepreneurs, investors, and participated in entrepreneurship competitions to gain insights into this competitive landscape. Now a venture capitalist herself, Liu’s experiences shed light on the complexities of China’s entrepreneurial ecosystem and the evolving dynamics of the global high-tech industry.
Liu’s Impressions of Shenzhen
Upon arriving in Shenzhen, Liu was struck by the city’s relentless construction noise, symbolizing its rapid development and economic growth. The juxtaposition of towering high-rises and urban villages highlighted the contrasts within the city. She noted the prevalence of the term “dagongren,” or manual laborers, even among white-collar tech elites, showcasing the diverse social fabric of Shenzhen.
The Myth of Wolf Culture
The term “wolf culture” often evokes images of aggression and cutthroat competition, especially in the context of companies like Huawei. However, Liu emphasized that the culture also values teamwork and perseverance, contrary to popular misconceptions. Wolf culture, she argued, is more about a process of self-idealization and becoming, where individuals strive to embody the traits of wolves in their pursuit of success.
Defining Excellence in Shenzhen
In Shenzhen’s startup community, excellence is measured through a dual lens of market expertise and state recognition. While market success hinges on industry experience and technical prowess, state-backed policies prioritize educational background and transnational experience. The alignment of these two standards of excellence poses challenges for entrepreneurs seeking to navigate the competitive landscape.
Bodily Techniques and Performance
Entrepreneurs in Shenzhen employ “bodily techniques” to project excellence and credibility in their interactions. From assertive voices to formal attire, these cues aim to enhance professionalism and convey a sense of authority. The performative aspect of entrepreneurship underscores the role-playing nature of projecting success and competence in a competitive environment.
Privileged vs. Grassroots Entrepreneurs
Privileged entrepreneurs in Shenzhen benefit from easier access to resources and talent policy benefits, easing their initial startup challenges. However, the pressure to excel and meet high expectations creates a sense of precarious privilege, where success is not just an option but an identity. In contrast, grassroots entrepreneurs face greater hurdles in accessing resources and building networks, driving them to embrace wolf culture and strive harder for recognition.
Navigating Staff Turnover and Long-Term Goals
The tension between high staff turnover and the quest for dedicated talents reflects the exploitative nature of the startup ecosystem. Entrepreneurs, driven by fear of failure and the need to demonstrate excellence, impose demanding work norms that contribute to employee turnover. This cycle of pressure and turnover ultimately hampers both employers and employees, leading some to seek opportunities outside Shenzhen’s high-tech scene.
The Future of Entrepreneurship in China
As China’s entrepreneurial landscape continues to evolve, the dynamics of wolf culture and the pursuit of excellence will shape the future of startups in the country. Navigating the competitive pressures while fostering a more sustainable work culture remains a challenge for entrepreneurs looking to thrive in the high-tech industry. By understanding the nuances of wolf culture and its impact on workers from diverse backgrounds, entrepreneurs can strive to create a more inclusive and balanced entrepreneurial ecosystem in China.