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Startups help in creating more jobs

By Jing Shuiyu | China Daily | Updated: 2018-11-27 10:47
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Entrepreneurs make floriculture tools for home gardening purposes at a Huzhou, Zhejiang province-based startup. [Photo / Xinhua]

Chinese entrepreneurs increasingly focusing on innovation as business environment improves

Chinese startups are becoming more successful in creating jobs, and entrepreneurs more highly educated, according to a new report by Tsinghua University.

The 2017/2018 China Report from the Global Entrepreneurship Monitor found that in 2017, the proportion of companies that can offer six or more jobs was 27 percent, up 7 points from 2006.

Between 2002 and 2017, the proportion of highly educated entrepreneurs also climbed. The report also found that there were more people with high incomes starting their own businesses.

Xu Ziwei, a psychotherapist working at the mental health center of the Renmin University of China, said more entrepreneurs are becoming mentally mature.

"In the past, some entrepreneurs idealized their expectations. Many regarded entrepreneurship as a magic weapon to change their own destiny ... To some extent, they tended to overestimate themselves while underestimating the real situation," Xu said.

As the market gradually improved, they become more rational about the risks and benefits of startups and their own capabilities, Xu added.

The Entrepreneurship Research Center on G20 Economics, an affiliate of Tsinghua University, conducted the survey.

The report found Chinese entrepreneurs aged 25-34 are the most active entrepreneurs, the same as global trend. Over 60 percent of Chinese respondents said they have started businesses in pursuit of an opportunity rather than out of necessity.

It said the overall entrepreneurial environment has been optimized, in terms of tangible infrastructure, market openness, cultural and social norms.

The uptrend of China's startup activities was fueled by the country's steadfast commitment to fostering innovative ideas and entrepreneurial spirit. In 2014, the government proposed mass entrepreneurship and innovation, which has been viewed as a new engine for China's economic growth.

Kaifu Lee, chairman and CEO of Sinovation Ventures, a Chinese technology-focused investment firm, said Chinese entrepreneurs are shifting from being imitators to innovators.

Some of China's creations have an advantage over the United States, Lee was quoted as saying by State-run Xinhua News Agency.

China, however, has relatively fewer original innovations in general, and the country needs to further reform the educational system, Lee said.

According to the Tsinghua report, more than 60 percent of Chinese entrepreneurs operated wholesale or retail businesses. In comparison, there were a smaller proportion of Chinese engaged in higher-value business industries, such as information, communications, financial and professional services.

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