Many star­tups take plunge with­out mar­ket re­search

China Daily (Canada) - - BUSINESS -

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.’’

XIN­HUA

Two col­lege stu­dents ex­change ideas about new prod­ucts at a fair to boost in­no­va­tion and en­trepreneur­ship in Shang­hai.

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