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March 19, 2005

Entrepreneurs Tim Nguyen (left) and James Wong started Avidian Technologies three years ago.

Asian American entrepreneurs: old vs. young

Part I: New generation defies expectations

By Assunta Ng
Northwest Asian Weekly

Asian American entrepreneurs from the “old school” were confined to restaurants, grocery stores and dry-cleaning businesses. The new generation, in contrast, defies expectations and reaches for the stars.

How different are these young Asian entrepreneurs from their parents?

James Wong, Tim Nguyen and Yale Wong belong to a new breed of Asian American entrepreneurs. Only in their 30s, these businessmen aim for the hottest commodities in the market. Combined, they have a proven record of establishing and selling 10 profitable businesses. They are doers as well as visionaries — the essence of successful entrepreneurs.

James and Tim own Avidian Technologies, which develops software for customer-relationship management. Yale (no relation to James) just sold Compass Communications, one of the first Internet providers in Washington state.

James, Tim and Yale were all recipients of the Seattle Mayor’s Small Business Award last year. The success these men have had shatters stereotypes. Talk to them only briefly and you will hear them quote from books about building great companies, not just businesses. Prod them a little further and you will learn that they carry on their parents’ work ethic but they don’t embrace the old folks’ reliance on cheap labor and products to make their businesses fly. In fact, these young men think the opposite. Cheapness, they believe, should not be the solution, and market share is determined by aggressive marketing.

Instead of retail, Avidian and Compass aim at business-to-business selling, which offer bigger profit margins. Avidian’s software sells from as little as $149 to as much as $20,000 for a single account. Compass charged a rate of $1,500 a month to wholesale customers when Yale was its CEO.

In their 20s, James, Tim and Yale became masters at starting things from scratch and building them into profitable entities. They also share other similarities. Unlike traditional Asian-owned businesses, where the owners’ time and energy are focused primarily on making money and not on community involvement, these managers have realized the importance of giving back and participating in the community.

Many of the older Asian business owners want their kids to be engineers. None of these guys has an engineering degree; all three earned business degrees.

Unlike their parents, who interact only in their immediate circle and are secretive about their business practices, James, Tim and Yale are networking enthusiasts and are open to sharing ideas. “Every time I talk to James, I always learn something,” said Yale. James had been a client of Compass Communications.

Avidian Technologies

The partners of Avidian Technologies talk like professors. They read a lot and can quote business gurus at a moment’s notice.

James, 32, and Tim, 33, started Avidian in 2002. Both are immigrants. James was born in China, while Tim was born in North Vietnam. Both came to this country when they were younger than 10 years old.

James was recently named by Puget Sound Business Journal as one of the most influential businesspeople under the age of 40. Tim and James are graduates of the University of Washington Business School. James has a bachelor’s degree in business administration; Tim, in information systems.

Tim’s dad left his family when he was 5 years old. His mom became his role model. To help the family survive, she started three businesses one after another — a clothing boutique, a bakery and a nail salon.

Avidian is James’ third business. He went into partnership with his dad in a taxi business while James was still in college. The business paid for his college education. Later, James and his dad sold the business, making a good profit on it. In 1997, James and a friend started Foci Technologies with just $5,000. Four years later, he sold the company to Meritage Technologies Inc. for a profit.

Avidian employs more than six people and grossed over $1.3 million last year. Its goal is to gross more than $3 million this year.

What they have observed from their parents is that all work and no play makes for a dull life. Last year, James joined his church on a mission to China to spread the Christian faith. These entrepreneurs want a rich life not only in terms of material wealth, but also in their family relationships, hobbies, friendships, skills and networking opportunities. James is active in Rotary Club and was invited to join the board this year. Both Tim and James are members of the Young Entrepreneurs Association.

Tim and his wife are also real estate investors. They like hiking, skiing, camping and other activities that help their family bond.

The interview with James and Tim revealed the biggest difference between the two generations of Asian American entrepreneurs: The young ones dare to risk and lead. James said he and his partner have invested more than half a million dollars in their business.

Part II in next week’s issue: Yale Wong, founder of Compass Communications.

Assunta Ng can be reached at assunta@nwasianweekly.com.

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