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China / Innovation

Young entrepreneurs share ideals but can't ignore business principals

By Liu Wei (chinadaily.com.cn) Updated: 2015-05-08 07:05

Young entrepreneurs share ideals but can't ignore business principals

Premier Li Keqiang tried a remote control mechanical arm in Chaihuo Makerspace, an innovation platform in Shenzhen, Guangdong province on Jan 4, 2015. [Photo/China News Service]

The government is eager to ignite the public's interest in innovation as the country strives to transform itself from the world's manufacturing hub to a superpower of creativity and high-end manufacturing.

The Ministry of Education promoted new policies at the end of last year requiring universities to establish flexible course terms and allow students to take a break in their academic career to start businesses as China faces huge pressure to create more jobs for graduates.

Many universities have launched investment funds to encourage students in establishing startups. Private equity firms such as IDG are also eyeing college students to become their next investments. IDG announced a $100 million fund for investing in post-90s young entrepreneurs in August.

In addition, as housing prices fell due to Central government measures, well-heeled investors are turning their focus to startups.

It seems young people who try to start their own business will gain a feeling of security but it could be a double-edged sword.

The sense of security gives young entrepreneurs more novel ideas but many show a lack of devotion when they run the business.

There's a common worry among angel investors. "Students in campus sometimes can't take the responsibility. They always think they can go back to school as a backup plan if the business goes wrong. They lack some crisis awareness like a real businessman," one said.

Yin said being an entrepreneur is a business practice which cannot be built only by dreams or ideals. The business model, money and financing are the elements that keep the company's wheel rolling.

The nature of the business won't change because of the Internet era or active-thinking. The successful ones show the same business aptitude as their predecessors - good connections, responsible, mature, devoted and thinking ahead.

"Being an entrepreneur is a marathon," Yin said. "Nobody will know who you are if you don't complete the whole run. Receiving funds is the first step but it's not even the start."

Young entrepreneurs share ideals but can't ignore business principals

 

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