2016-China puts faith in start-up boom

Hi everyone!

A new topic: China puts faith in start-up boom. Please read and join the discussion.

URL: http://www.ft.com/cms/s/2/11aed256-1209-11e6-91da-096d89bd2173.html?utm_source=taboola&utm_medium=referral#axzz4J3nJgR6V

Thanks.

This is absolutely right, before the entire environment of the society is cooled down from short money, entrepreneur is unlikely to bring faith to young talents. Also, if the property of a technology or product cannot be protected by law, people can never get a better life by being “innovative” or “entrepreneurial”.

Actually I believe this is rooted from the average living condition of people in China, the majority of the population is still struggling for lives that don’t have to worry about daily consumptions. Under this circumstance, a government oriented entrepreneurial development is somehow still controlled by the very few people that live on the top of the pyramid.

The creation of an atmosphere favorable to the development of news ideas, new products and new services cannot be made (just) by snaping the fingers through money investment. I believe that the potential entrepreneurs must have confidence in their liberty to develop something brand new, whatever the consequences may be. And in a context of constant monitoring, I don’t doubt that start-up companies will rise and explode, but I doubt that a great many potential skyrocketing start-ups do not even develop because they do not fit in the government program.

When the population bonus disappeared, nothing else could stimulate the Chinese economy to keep growing except mass enterpreneurship and innovation. It is definitely advisable for the goverment to promote the growth of start-up companies. However, money investment itself is not enough. As we know that extrinsic motivation is just one part to stimulate creativity. We need first the expertise and creative thinking. From this point of view, the government should first establish an innovative friendly environment from the begining, such as the education of children and the protection of intellectural property. We won't expect one to success in innovation when he still struggles with tests during the 9 year compulsory education. And also, we won't expect talent people to devote himself in his career to create new things when there are too many guys wait to steal his idea and get the same benefit.
It is a fine signal for the goverment to make the first step. However, they have a long way to go.

The new policy of “Mass Entrepreneurship and Innovation” is a positive sign for hi-tech industries in China. In the long run it will direct more resources to the start-up companies in technical industries. Due to considerable R&D cost burden, technical industry will have much better environment with support of various aspects from government. Even the government is sponsoring at no charge, it is still a worthy investment for the overall business environment. But the criteria of sponsoring is an issue. For now, most research institutes in Chinese universities do not have transparent monitoring mechanism for selection of sponsor recipient process and usage of fund. And whether the innovative R&D start-up companies can share the sensitive technical expertise to similar research institutes is questionable due to intellectual property concern. So it is no easy for the government to establish a effective expert panel to assess if the start-ups is really devoted to innovative business. The government should introduce mature academic assessment process from abroad to make a more justifiable sponsor process.

The government's effort to promote innovation and entrepreneurship will benifit the environment of startup. But simply pumping money into the system is not enough. Intellectual protection and better law enforcement should be optimized.

Actually this is not the first time that the Chinese government announces to support start up companies and promote innovation. In the past two years, because of the government's support, the Internet related business booms up, like online financing. But we also see some Ponzi scheme, that lots investors had been cheated. So whether the government's regulation as well as the supervision mechanism are completed, is the precondition to warm the economy via these trillions of money.

I think it's very helpful to those small firms who are prospects for the development and need cash flow in their early start. So it's very appreciated if the government can support money for them. But these money should be regulated. The government should observe those firms rather than turning a blind eye to money investments.
I'm working for automotive market in China market. Nowdays, the electric vehicles is very hot，also it brings is a lot of cheat up behavior to get subsidy from government, but we can not deny it because without these support our technology will not develop so fast.

I cannot deny that in China today's society, the government could really influence many field of our life. however, in the field of innovation, could it really make contribute to it ? i really doubt.

Emma Xu wrote:Actually this is not the first time that the Chinese government announces to support start up companies and promote innovation. In the past two years, because of the government's support, the Internet related business booms up, like online financing. But we also see some Ponzi scheme, that lots investors had been cheated. So whether the government's regulation as well as the supervision mechanism are completed, is the precondition to warm the economy via these trillions of money.

these successful outcomes do exist. But we also could not ignore the those failures, such as the comics industry. the main body of innovation is the individual and the company, the judgement is the market. in this loop, there's nothing about the government. I mean, it is true that government could stimulate the innovation atmosphere by the policy,but really matters is the individuals.

No doubt that I cann’t agree anymore , People have no confidence with the entreprene ,reason is quite simply and pure : there is no enough policy and law to protect the intellectual especially innovation, although the goverment said they did a lot ! Besides , goverment keep invest ,protect and gain lots of cash ,tax . To me , can not feel the light until the whole soical quit from overheated real estate investment.

Obviously, this issue comes, The new government's monopoly on economy and society, as well as the 100% allocation of social resources. These have led to a vested interest in the emerging industries of contempt and discrimination.

Beijing’s policymakers have a long history of giving favored companies easy access to loans and subsidies to propel certain industries, with both good and bad consequences. Though that tactic lubricated the nation’s industrialization, it also lead to overcapacity like the kind we see now in China’s manufacturing sector, which is largely a result of government support.

Goverment need to promote entrepreneurial environment in terms of the leadership, policy, training, service and evaluation system, to increase entrepreneurship publicity and promote entrepreneurial spirit to foster a positive society for entrepreneurship and innovation.

China will go through a struggling period during the economy re-structuring. The brutal investment-driven economy will not be sustainable for China. Yet, the shifting will not that easy. China wants to invest high-tech industries, and this sector of business in China need to deal with the intellectual problems. How the Chinese government can solve the intellectual problem is still a remaining question mark, and a long way to go. This is very essential for China's economy from "scale" winner to "quality" winner.

It is no doubt that the government put faith in Start-up and support Start-up companys is a very good thing, while, while, while, from where I stand; I will say, money will go the the place where has more productivity itself, where can earn more money. In this case, I believe, what government need to do is not just promote or a simply financial favoured policy to start-ups; but really provide a better enviroment for Start-ups, which could really build up and survive for a long run.

I agree with you, Daisy: providing a better environment is paramount and it shall not be only about financial support. Fostering entrepreneurs and innovation begin with providing the right incentives to the education and business systems: basic IP rules, institutional structures to meet and share ideas, international events, etc.

In some key area, such as basic science, national defense, social insurance, government should invest more. While in bussiness area, government should fall back because they always use money unefficiently and their power will effect fair competition thus disturb markets.

I don't know if you're talking about the Chinese government itself or governments in general but state intervention in the business world doesn't necessarily means disturbed markets.
It might be a Keynesian view of economics but I think this is a good thing that the Chinese government involve in the start-ups' world. Actually, this is a great opportunity for the government to reconcile economic growth with social matters that need more attention from the business world.

China needs to change. With the industry revolution, China may skip the Information Revolution and enter into the Conceptual Revolution directly. Therefore, Chinese Government is encouraging start-up boom. However, start-ups need creativity and innovations which cannot be provided by the government. Chinese government could provide the entrepreneurship-friendly environment by setting up the tax preference and investing more money on the creativity education. Hope China would have a successful transition into the Conceptual Revolution Era.

I have to argue the result of Chinese government to incentive this entrepreneur and innovation in order to shift heavy traditional industry to more innovate industry into two sides. The disagree side is that, innovation is evently an induction activities. It comes from individual creative ideas. It does not rely on money to generate the idea spark. If there is a spark, it fires. However, taking about the Agree side, if there is a spark coming out, given good financial support, I believe the good economic environment which concerns tax, loan, can Forster the innovation to develop quickly.
- Baiyun

I think entrepreneurship atmosphere is very strong now, and should be able to do is the best. Especially in cloud computing, internet of things, and big data as a representative of a new generation of information technology, the integration of modern manufacturing industry and producer services innovation, provides the environment to the masses entrepreneurship, and people innovation.

In my opinion, government ought to pay more attention to create a suitable environment for "mass entrepreneurship and innovation" and avoid directly investing, either in the format of money, places or other resources. Government acts as referee, rather than player since it doesn't have right level of expertise, setting proper regulation could encourage competition, which stimulate more creative ideas to be applied. Another important issue is the protection of intellectual property, which ensure the sustainable development of innovative companies.

I think there is just a little impact for Chinese start-ups by the help of the government. Many of them,especially young people, lack ofmoney instead of creativity and new ideas. Investment companies will bemore suitable for them. Old-form company actually needs the help of government. They need innovation and the government to help them change their form of production labor.

From my point of view, enterprise should be align with rules of market economic instead of government control since there will be little help that the government put faith in Start-up booms. Market evaluate and select the excellent enterprises efficiently than government, which called survival of the fittest.

It is a good way that government encourage the entrepreneurs to start their own business. Eliminate weaknesses in the policy is to improve the business environment basic strategy. For example, in financial support, the equity investment, debt financing support is the key, private equity investment in China has become increasingly active, building the venture capital market is the key. Entrepreneurship for small and medium micro enterprises debt financing need to be given special attention and strengthened. In government projects, incubators and science parks on the creation and development of start-ups play a positive role, but lacks the breadth and diversity of government programs, but also in the organization of government programs still not fully qualified to help start-ups. Core improve the business environment for entrepreneurs is to enhance the level of professional services, mainly to improve the technology, marketing, finance, personnel mobility and other professional services.