Entrepreneurship In China 1 Essay

Submitted By Davidhaoxiang
Words: 822
Pages: 4

Entrepreneurship in China With China’s economic development, more and more countries started turning their eyes towards this old yet young country. Although, Chinese historical culture and economy institution during transition reflect the particularity of entrepreneurship development in China, this still is a phenomenal time for individual entrepreneurs and innovators in China. As a developing country, with the profound development of economic system reform, China finished planned economy being transformed into market economic. The transformation of economic system also simulated the development of China’s business; more and more young people who finished their undergraduate or master degree from the university choose to create their own company in China even “in developing countries, self-employment is challenging due to imperfect credit markets, supply chains, and product markets” (Banerjee and Newman 1993).

Compared with the United States, china’s entrepreneurship environment is very different from the United Stated. For the past few years, millions of students graduated from university and have to face the rigorous problem of employment, the Chinese government introduce different polices to make sure these graduating students have a good entrepreneurship environment. From 2008, Central Government of China introduce the financial policy to strongly support university students to create their own small business and at the same time, begin to help these small business created their own small business credit record, follow the credit record, these small business will get more tax preferences and bank loan with low interests. From 2012, the government avoids all the administrative expense for the small business and the Business Sector to relax market access conditions and strive to create a relaxed business environment. “A lot of new small business make the China’s level of innovation is incredible along with its ability to mass produce innovations.”(Sun Ted 2010) For the entrepreneurship environment, only the government cannot create a perfect environment for entrepreneur is not enough. The other big different thing between China and other developed countries is the civilian force’s influence for the small business. In some developed countries, most of successful business men like to pay money for the new enterprises, these abundant capital make these new company could have a faster development and people always call these successful business men named Angel Investor. But in China, the Angel Investment is less. Because the mean of Angel Investor is: “wealthy people who help entrepreneurs they believe in to start businesses by funding them” (Li Yi), however, the mean of the Angel Invertor is different from traditional Chinese rich people’s thinking, most of Chinese wealth people like to give money to their son or daughter, not other people who has no relationship with themselves, so, that is the most reason there are less Angel Invertor in China. The unsubstantial civilian force block the development of entrepreneurship in China, however, as time goes on, there will be more and more Angel Invertor in China. In 1945, when the University of Harvard began to open the Entrepreneurship Education, this subject has been developed more than 60 years. However, in China this subject grow up nearly 10 years. At the beginning of the subject created, most of universities are not be interested in