There’s never been a better time to start a business – especially in China

There’s never been a better time to start a business – especially in China, CHINESE BUSINESS, BUSINESS OPPORTUNITIES, BUSINESS ADVICE, CHINA, ENTREPRENEURS, CHINESE COMPANY, ECONOMIC ANALYSIS , CHINESE POLITICS, CHINESE FIRMS

There’s never been a better time to start a business – especially in China

Chinese Portal On June 16th, China's State Council issued a set of guidelines aimed at promoting startups as a way to combat the effects of the economic slowdown. Eliminating bureaucratic restrictions on startups, China is creating a social ecosystem that supports mass entrepreneurship and innovation, particularly for high-tech and internet-based companies.

Now, authorities have set out to develop public platforms to support entrepreneurs and encourage people (i.e. college students, graduates, professionals and expatriates) to start their own businesses. According to the latest announcement, the government will help college students create their own businesses by providing financial assistance and expert consultation.

China to promote cross-border e-commerce as incomes rise

Of course, this also provides opportunity for foreigners attempting to set up shop in China, both online and on the ground. As China’s economy shifts from manufacturing to higher-value services, e-commerce has benefitted from a rise in wages and disposable income from the middle classes. The Chinese government has introduced pilot projects to ease overseas payments, in order to encourage those outside China to boost domestic companies. It is only a matter of time before a similar policy that benefits foreign companies supplying goods to China is introduced. 

There has also been an increase in the number of organisations dedicated to helping entrepreneurs move into the market, such as the UKTI, which is making more concerted efforts to encourage foreign business owners to explore China’s growing consumer base.  

Startups still welcomed, but competition is getting tougher

The real advantage of China, though, is simply the scale. With the largest consumer market in the world, an idea that reaches even 0.01% of the population is still an idea that’s worth pursuing. Further, products can be designed and developed in just a few days, and timescale that can’t be matched in Europe. It also means entrepreneurs can get a product to market without having to raise too much money.

But the Chinese business environment is not plain sailing. A lot of research is still necessary to see whether or not your product fits in with the market and, more often than not, a presence in the country is necessary. It’s definitely a learning curve. It’s also not as easy as it used to be. For example, those who want to set up a wine importing business in China might find themselves ousted by Chinese companies buying vineyards around the world.

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