A University of Michigan paper examines the unique role of the Township and Village Enterprise in China and its applicability to other developing regions:
TVEs addressed obstacles that many small businesses face in developing countries including access to capital and new markets and protection from corruption. While the structure of TVEs contributed significantly to their success, the economic and social climate and factors such as high rates unemployment also encouraged the success of TVEs. TVEs provide valuable lessons for other developing countries but, the chances of the model being replicated in another country are not strong unless their economic and social environment is similar. There are however valuable lessons that other countries can apply from the TVE model. The most important lesson is that public-private partnerships work and provide a good model for protecting infant businesses and encouraging entrepreneurial spirit. A combination of these two outcomes will help an economy grow.
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