A FRESH START

China’s young peo­ple, driven to change the world, are launch­ing com­pa­nies on a mas­sive scale, re­ports.

China Daily (Canada) - - ANALYSIS -

Huang is a men­tor for bud­ding CEOs through the pri­vately run Fu­jian Haixi Youth Start-up Fund and China Youth Start-up Fund. Yet many oth­ers are fly­ing blind.

Ac­cord­ing to the Global En­tre­pre­neur Mon­i­tor re­search, 87 per­cent of China’s en­trepreneurs have had no for­mal train­ing in how to start and main­tain a busi­ness. In places such as Europe and the US the fig­ure is 68 per­cent.

The re­port also added that Chi­nese start-ups find it hard to secure loans from banks or other fi­nan­cial in­sti­tu­tions.

It found that 9 per­cent re­ceived fi­nanc­ing from a bank, about 58 per­cent ob­tained funds from rel­a­tives, whereas in de­vel­oped coun­tries the cor­re­spond­ing fig­ures were about 23 per­cent and 14 per­cent.

“Com­pared with de­vel­oped economies, the fi­nan­cial sup­port and vo­ca­tional ed­u­ca­tion for en­trepreneurs in China lags be­hind,” said Gao Jian at Ts­inghua Univer­sity. “How­ever, the sit­u­a­tion is get­ting bet­ter, as govern­ments are putting in more ef­fort.”

Yi Ran is the founder and CEO of Bei­jing Juhui­wan In­ter­ac­tive Tech­nol­ogy, a com­pany that pro­vides cor­po­rate team-build­ing so­lu­tions and is based in an in­no­va­tion in­cu­ba­tor in Zhong­guan­cun, the so-called Sil­i­con Val­ley of Bei­jing.

The 29-year-old said con­di­tions have im­proved for start-ups in China in re­cent years, but the boom time now means com­pe­ti­tion for fi­nanc­ing is fierce.

“Lo­cal govern­ments now pro­vide fi­nanc­ing plat­forms and have im­proved the in­fra­struc­ture for start-up com­pa­nies like us, which helps a lot,” he said. “But glob­ally speak­ing, start-ups are get­ting stronger, and it’s not easy to get fund­ing.

“Start-ups need to seek mul­ti­ple in­vestors for seed money, and how to work with these in­vestors is also a chal­lenge,” he added, say­ing that he has re­fused cap­i­tal in the past from in­vestors whose man­age­ment phi­los­o­phy dif­fers from his own.

Li Gang, the head of Beast Sports, re­ceived seed cap­i­tal from In­no­va­tion Works and said he has ben­e­fited greatly from the in­put from in­vestors.

“Most are ex­pe­ri­enced en­trepreneurs who can give busi­ness man­age­ment tips to us young peo­ple,” he said.

“They help in other ar­eas, too, such as with re­cruit­ment, man­u­fac­tur­ing, fi­nance and le­gal mat­ters, and in­tro­duc­ing po­ten­tial busi­ness part­ners.

“It’s about more than just money.”

Con­tact the writer at huhaiyan@chi­nadaily.com.cn

PRO­VIDED TO CHINA DAILY

Young busi­ness­peo­ple talk at a meet­ing place for bud­ding en­trepreneurs and an­gel in­vestors in Zhong­guan­cun Haid­ian Sci­ence Park in Bei­jing.

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