The central government is raising the amount lent to startups and encouraging migrant workers to start their own businesses. Entrepreneurship and innovation is the way to make people rich and the country strong, and can advance structural optimization of industries and enterprises, according to a central government statement.

"A national support system for startups means it's a good time to open for business, and self-employment will provide more jobs for others," said Zhang Hui of the Party School of the Guangxi Provincial Committee of the Communist Party of China.

The Internet, especially the mobile Internet, still has good prospects and provides the best opportunities for young Chinese entrepreneurs, according to the Internet Society of China.

In the past decade, the Internet has produced a number of Chinese e-billionaires including Tencent CEO Pony Ma and Alibaba founder Jack Ma, but not all young entrepreneurs have made their names so easily.

Chen Jing, 27, founder of organic food seller Ancient Agricultural Development, is still struggling to break even after two years. He has invested nearly 1 million yuan but his company is not even close to turning a profit.

Fang Yi, CEO of leading cell phone smart push service Getui, said Internet startups are characterized by high risks and high profits, but products are always at the core. He distinguishes two types of business, according to profit modes: one, a traditional gradual accumulation of profits; the other, loss first, then explosive growth.

"I believe our company is the second type, and I'm patient and confident," said Chen.

He has raised more loans, helped by preferential government policies. His next move will be to improve product quality and package design.

"I am ready to see my company fly," he said.