BEIJING- Vice Minister of Science and Technology Cao Jianlin on Friday pledged more financial support from the government to help graduates start their own business.

Citing various provincial-level policies, Cao told a press conference that Guangdong province, south China, will allocate 2.5 billion yuan ($408 million) in allowances over the next four years for startups of this nature, while Zhejiang province, East China, had assigned 100 million yuan to the initiative this year.

Many policies have been designed with college graduates in mind, he said.

Cao suggested that young entrepreneurs seek help from business incubators, which offer financial support and operational support, such as reduced rent.

Currently, China has 1,700 business incubators. Also, 129 state-level high-tech industrial parks have institutions that can support startups.

This year the number of college graduates will be 7.49 million, more than ever before, and a sizable challenge for the employment market.

About 80,000 small technology firms in China now employ 1.75 million people. This year they may only have 150,000 positions for graduates, according to Cao.

"We always think that the youth are good at school but not in business. We should nurture entrepreneurialism and business skills while they are in school," Cao said, calling on the education department to take more action.