Ra­tion­al­ity es­sen­tial for new star­tups

Fe­male en­trepreneurs have a higher rate of suc­cess due to care­ful con­sid­er­a­tion of risks

China Daily (Hong Kong) - - CHINA - By HOU LIQIANG houliqiang@chi­nadaily.com.cn

Busi­ness ex­perts urged young en­trepreneurs to be more ra­tio­nal with busi­ness star­tups af­ter a re­port pub­lished on Mon­day found that many of them launched star­tups with lit­tle ex­pe­ri­ence or prepa­ra­tion.

Pub­lished by the Min­istry of Hu­man Re­sources and So­cial Se­cu­rity, and Chi­nese mi­cro­fi­nance pi­o­neer Cred­itEase, the re­port on Chi­nese en­trepreneurs un­der the age of 35 also found more men start busi­nesses in China. About 60 per­cent of the 4,329 en­trepreneurs in­ter­viewed for the re­port are males.

Yet af­ter fol­low­ing up with 567 re­spon­dents of a sim­i­lar study last year, re­searchers found that a higher rate of fe­male en­trepreneurs suc­ceeded in their busi­nesses com­pared with males be­cause of their more cau­tious man­ner and more care­ful con­sid­er­a­tion of po­ten­tial risks.

It said 69 per­cent of fe­male en­trepreneurs had suc­ceeded in their star­tups, 3.1 per­cent­age points higher than their male peers.

Gen­er­ally, how­ever, Chi­nese en­trepreneurs don’t pre­pare well when they start their busi­nesses. The re­port found that 33.8 per­cent of en­trepreneurs are stu­dents or new grad­u­ates, and half of them have no work ex­pe­ri­ence.

Only 65 per­cent of the re­spon­dents said they had done mar­ket re­search be­fore they started their busi­nesses. They fared even worse in other prepa­ra­tion work, in­clud­ing learn­ing rel­e­vant poli­cies, draft­ing busi­ness plans and build­ing teams of em­ploy­ees, the re­port said.

Many young Chi­nese en­trepreneurs don’t have long-term plans for their busi­ness. Some also found they couldn’t reg­is­ter trade­marks for their prod­ucts when they had been do­ing well, said Bao Chun­lei, a re­searcher at the In­sti­tute of La­bor Sci­ence and one of the au­thors of the re­port.

He said many young peo­ple started their busi­nesses

mal hus­bandry and fish­ery sion, soft­ware and IT en­ter­tain­ment

out of an in­ter­est, in­stead of a mar­ket need, which in­creases the risk of fail­ure.

The re­port found 29.2 per­cent of the males and 37.6 per­cent of the fe­males cited per­sonal in­ter­est as one of the main fac­tors for their de­ci­sion to start a busi­ness.

Wu Dao­huai, direc­tor of the Min­istry of Hu­man Re­sources and So­cial Se­cu­rity’s depart­ment of em­ploy­ment pro­mo­tion, said en­trepreneurs should be more ra­tio­nal in their busi­ness star­tups.

“Not ev­ery­one has the abil­ity to launch a startup and not all en­trepreneurs suc­ceed. It needs ba­sic com­pe­tency and will­ing­ness. Peo­ple should be ra­tio­nal in their judg­ments of them­selves and anal­y­sis of the mar­ket,” he said. Let it slide

Source: Min­istry of Hu­man Re­sources and So­cial Peo­ple should be ra­tio­nal in their judg­ments of them­selves and anal­y­sis of the mar­ket.” Wu Dao­huai, of­fi­cial with the Min­istry of Hu­man Re­sources and So­cial Se­cu­rity A child trav­els down a snow slide in Bei­jing’s Long­tan Park on Mon­day. A snow-themed car­ni­val cov­er­ing an area of nearly 30,000 square me­ters opened in the park on Fri­day last week.

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