Having graduated from a university last June, Wang Zhicha opened a small gift shop. But after one year of struggle, he has decided to close shop.

"Of the 100,000 yuan ($16,305) I got from my parents, I've already lost 80,000 yuan," he says with a forced smile. "I should spend the rest on something serious." By "serious" he means taking the national or provincial level exam for civil servants.

Wang is not the only university graduate to fold up his business. According to a MyCOS Institute survey, 70 percent of the university graduates who start a business fold up within three years.