Many startups take plunge without market research
10 million yuan ($1.44 million).
In a separate survey conducted by the Renmin University of China, 89.8 percent of 434,827 students and new graduates from 1,767 universities in 31 provinces said they had considered starting a business, with 18.2 percent reporting firm intentions to do so.
A lack of funding and inexperience were often cited as obstacles to starting any new businesses, according to the survey. It found nearly 40 percent of young entrepreneurs rely on external capital such as loans from banks, investment organizations, schools and the government.
“Owing to lack of funding, experience and resources, it is really difficult for young entrepreneurs to operate their business at the beginning,’’ the Institute of Labor Science’s Bao said. “But they are well-educated, passionate, innovative and eager to learn, which also offers them advantages.”
Worldwide funding activity declined 24 percent to $127.4 billion last yearcomparedwith 2015, according to a quarterly report on global venture capital trends published by KPMG.
“Not everyone has the ability to launch a startup and not all entrepreneurs succeed,’’ said Wu Daohuai, director of the Ministry of Human Resources and Social Security’s department of employment promotion. “It needs basic competency and willingness. People should be rational in their judgments of themselves and analysis of the market.’’
Two college students exchange ideas about new products at a fair to boost innovation and entrepreneurship in Shanghai.