Many startups take plunge without market research
Key areas to see ‘big waves’ of innovation 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 year compared with 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.’’
opment of the so-called Internet Plus, which aims to integrate the mobile internet, cloud computing and the internet of things with traditional industries.
Zheng Xinli, deputy director of the China Center for International Economic Exchanges, last month said new business opportunities will come from public services and innovation. He cited transportation, healthcare, education, caring for pensioners, information and culture.
“Those are where we will see big waves coming,’’ Zheng said. “And innovation will also prop up the development of new industries.”