It is a good time to be in business in China as the country is booting entrepreneurship and innovation! The government has been rolling out some business system reforms, which are rapidly boosting growth in business and creating fresh jobs. A senior official recently revealed that in 2013 6,900 new businesses were created each day, compared to 12,000 just last year. Each new company averaged seven brand new jobs, according to Zhang Mao, head of the State Administration for the department of Industry and Commerce.
In 2015, 74.8 percent of the new companies were involved in the service sector. Government officials say this has also helped encourage the reforms. 90 percent of startup businesses have been set up by sole proprietors, and overall citizens are finding it easier to get the resources needed from the government in order to start a company. Areas currently being overhauled and simplified include applications for trademarks or company names. Advertizing regulations are also due for new, more accessible policy.
Since 2013, China’s goal has been to streamline the administrative parts of starting and running a company, optimize market supervision, and establish support for business. Currently, China is encouraging entrepreneurship and innovation through the development of makerspaces. Innovation programs will be implemented in national demonstration zones so that independent innovations can be achieved alongside more high-tech zones. This means more encouragement for business, research institutes, universities, and other innovators to create makerspaces, as well as upgrade manufacturing and other modern services. The priority now is information technology, high-end equipment manufacture and state of the art agriculture.
One way to achieve new spaces will be through government subsidies given to non-working factories and warehouses to help pay rent, utilities, and the Internet while transforming into innovation and makerspaces. The government hopes to increase venture capital investment, and is looking at policy support for tax, intellectual property rights, and other areas of business.
Entrepreneurship has become an important way for China to address issues in overcapacity and need for jobs, among boosting the economy and enhancing the modernization of the country’s manufacturing processes and research. Data from the government’s State Administration of Taxation shows that while traditional manufacturing is slowing the economy’s growth, taxpaying companies in the high-tech and service industries are increasing. For instance, 2015 reports indicate that electronic machinery and equipment manufacturing produced 187 billion yuan (28.51 billion USD) in tax revenue, up 8.3 percent, and pharmaceutical manufacturing went up 13 percent.
Learn more about the Global Entrepreneurship Program in entrepreneurship, which takes place at emlyon business school in France, Zhejiang University in China & Pace University in the US.