[CCTV News] China Sees Rapid Boom in Those Opening Businesses

China has seen the biggest growth in start-up businesses globally over the past five years, according to a report issued by a British network of independent accounting and consulting firms. But what is behind this trend, and what should be done to tackle the challenges that many beginner entrepreneurs will face?

Li Wandong runs a small company in Guangzhou, producing chemical and industrial products made for ceramics and lithium battery. Two years ago, he worked as a sales manager, but the more he knew about the industry, the more eager he was to try something more creative.

Li established his own company in 2013 and is quite optimistic about the new energy industry.

"The government offers various subsidies to cars using new types of energy, that’s a clear signal. Car manufacturers are ready for explosive growth, for us - battery material provider, we are following the trend as well," Li said.

Li chose to open his business in a start-up center at Sun Yat-sen University, which now houses 260 companies. He was attracted by comprehensive services and subsidies on rent.

"We provide all kinds of support in banking, insurance, legal affairs and accounting. Besides, we have a venture capital fund to invest companies based in this center. We’ll assess their business plans and offer some guidelines," said Qin Hua, vice manager of Guangzhou Sun Yat-sen University Science Park.

This is merely one example of the start-ups boom in China. When it comes to global start-ups over the past five years, China is king. That is according to a report by a British network of independent accounting and consulting firms. The rapid growth comes as China adopts business-friendly policies aimed at countering its economic slowdown.

In June, the state council issued a statement encouraging business start-ups and innovation, and experts point out that this trend should be seized rationally.

"Those innovative start-ups are the next trend, they’ll help foster economic transformation and upgrading. But government should avoid supporting entrepreneurship blindly, and avoid wasting resources," said Professor Li Xinchun, Sun Yat-sen University's School of Business.
 

Professor Li Xinchun being interviewed by CCTV

Source: http://english.cntv.cn/2015/12/07/VIDE1449442440891616.shtml