In 2002, Xi Jinping, thengovernor of Fujian, conducted a survey of the coastal city and put forward the concept of "Jinjiang Practice", which listed 11 measures the city had adopted, and called for further study of the development model.

The city is now home to more than 50,000 private businesses. Last year, the combined output value of those with more than 20 million yuan ($3 million) in annual revenue was more than 400 billion yuan, accounting for 90 percent of the city's total. About 50 companies have sought initial public offerings.

Like other coastal regions that became wealthy in the late 1970s, Jinjiang achieved economic take off via labor intensive, export-oriented industries that required little technological input, such as clothing, paper and umbrellas, said Mei Lixia, a professor of economic geography at Zhongnan University of Economics and Law in Hubei province.

But those once-beneficial factors have resulted in a lack of growth momentum in the new era.

"I would call them factories rather than companies. They seek orders from clients and they process the raw materials, but they do not know the market demand or the complete industry chain," Mei said.

She noted that most of the companies are family businesses and the first-generation entrepreneurs were reluctant to allow them to grow beyond their control.

"Things have started to change with the younger generation," she said, adding that the first-generation entrepreneurs are now in their 60s and their children are assuming control of the businesses.

"Young entrepreneurs are more open to new business models such as e-commerce, more willing to tap overseas markets and employ modern management theories. This could provide an opportunity for Jinjiang's industrial upgrade."

Future plans

Now her parents are gradually relinquishing control of Jinjiang Fengxing Garment, Hong oversees research and development and marketing, while her sisters are responsible for production and finances.

She has recognized the need to add value to the business through new technologies and branding, and she constantly seeks opportunities to improve her performance as an entrepreneur.

Last year, she joined "Project Navigation", a program started by the local government to train promising young entrepreneurs by sending them to study leading businesses across the globe for short periods, and by inviting renowned academics to visit Jinjiang to provide classes on management techniques.

"I was thrilled when heard about the program and immediately wanted to give it a shot. I joined in September, even though my parents were initially against it. They believe that entrepreneurs should stay in factories, and say attending such training is a waste of time," she said.