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A new breed of entrepreneur

Updated: 2009-05-25 08:02
By Chen Xiaorong (China Daily)

A new breed of entrepreneur

A new breed of entrepreneur

Xu Yi may be only 25 years old but he has a firm idea of where he wants to go in life

The chief executive officer at Zhejiang SOE Entertainment Co Ltd is keen to emulate the early success of Chen Tianqiao, the 32-year-old co-owner of Shanda Entertainment who was catapulted into the list of China's richest 400 when he listed his company on the Nasdaq five years ago.

Like Chen, Xu works in the online gaming industry. But unlike Chen, whose company reaped $150 million from its initial public offering, Xu has just $1.5 million to play with courtesy of a recent injection of venture capital.

Chen aspires to be one of the new breed of young entrepreneurs with their fingers firmly on the pulse of e-commerce. And he firmly believes in the maxim, "Nothing ventured, nothing gained".

Chen majored in business management at Ningbo University in Zhejiang province but had shown an early interest in computers when his civil servant parents bought him and twin brother Xu Jian an Apple Mac when they were still in primary school.

The twins began creating websites in their early teens and were spurred on when they received $1,000 for building one for a real estate company. They were then courted by western pop music bands 911 and Westlife to develop their presence on the Internet.

Upon entering university, Xu Yi was struck by the popularity of computers but the shortage of repair shops on campus, so he set up his own. He also sold IT products to help students with online surfing. And in his third year he began making online games.

The fact that many students stayed up all night playing online games in Internet cafes made him realize their enormous business potential. In due time he was teaming up with professionals from well known online companies and, two years in succession, he received the university's Huaxia Pioneer Work Fund Award, worth $5,000 a time.

After Xu Yi graduated in 2007 he and two friends rented a 90-square-meter room and began working with Shanda Entertainment on the development of online games with local features for Ningbo residents. It was a success and they made money - enough to enable him to achieve his ambition of developing his own games commercially, thanks also to an injection of venture capital from a German firm in October 2008.

"We had a good business plan which impressed them," he said. "The business is not just about passion: it's about having a mature team and an effective management system."

Xu Jian, who works for the Shunya Communications Group, was fully aware of his twin brother's entrepreneurial flair. "He liked making friends far older than him," he said. "He doesn't behave or think like his peers. He is far-sighted. If we owned a company together he would definitely be the boss."

Xu Yi himself seldom plays online games, saying he prefers the business side of things and being a pioneer in the world of high technology.

Now Xu Yi sits in an office within a 1,600-square-meter commercial building, presiding over 80 employees. His company is the first online games study and development service provider in Ningbo. He has technological support from Ningbo University and College of Software Technology and from Zhejiang University. He can also call on the resources of Ningbo IT Industry department, the Ministry of Ningbo Science and Technology, Yinzhou Government, the Ministry of Yinzhou Science and Technology and its Ministry of Culture.

In addition, SOE Entertainment is a business partner with CNC Zhejiang Division, China Telecom Ningbo Division, China Mobile Zhejiang Division and China Unicom Ningbo Division. His company supplies them with added-value services such as ring tones, cell phone games and technical support.

Two games Xu Yi's company has developed have passed feasibility studies and are being developed for market launch later this year. He has invested $1 million of his venture capital in a gaming platform called "56play.com", which sounds like "I want to play" in Mandarin. Already the site is attracting 100,000 players a day, mainly students and white collar workers.

SOE Entertainment is a just one of 131 Chinese companies conducting their own research and development in the online gaming industry. They made $1.5 billion in sales revenue last year, which amounted to 60 percent of the total market.

Xu Yi remains unfazed in the face of such competition. He predicts the market will grow as domestic Internet and mobile phone use expands. He also thinks the current economic climate will help, rather than hinder, future success.

"People are seeking less expensive entertainment such as playing online games or watching movies as an escape from the pressures of the working life," he said. "Chen Tinqiao once put his success down to luck and good timing. I think the economic crisis will provide us with the opportunity to develop and become a powerful company."

Xu Yi's immediate expectations are modest - a revenue of just $1.2 million this year. But he takes a long-term view with his eye firmly on the overseas market; and, in due course, his own initial public offering, just like his idol, Chen.

(China Daily 05/25/2009 page7)

 
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