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Starting own businesses

(China Daily)
Updated: 2008-01-31 11:08

Entrepreneurship can create more job opportunities for China, says an article in Wenhui Daily. The following is an excerpt:

It is a key question whether we can turn the huge population into a human resources advantage. If we cannot accomplish this change, China will have serious difficulties feeding its population. Boosting employment is a key issue for a harmonious society. As international experience shows, employment affords protection and stabilizes society.

From the late 1970s to the 1990s, the government tried to boost employment by stimulating economic development. During this period, China's employment rate soared with the robust economic growth. In the mid-1990s, a large number of employees were laid-off due to upgrading of the industrial structure. Then, the government tried to set up more jobs for workers. As the new century dawned, the government hoped to change its economic development model and stressed the importance of innovation. Thus, starting a business became an important strategy for the country. The government has encouraged people to start their own businesses as a way to ease unemployment.

The encouragement of entrepreneurship can create many employment opportunities. But there are also many challenges.

First, quite a number of people lack the courage to start a business. A survey shows only 3 percent of Shanghai youth are prepared to do so as opposed to 40 percent.

Second, China lacks supporting systems for entrepreneurs. Due to the high risks of starting a business, a young person faces stiff resistance from families and friends. Moreover, we do not have enough supporting systems to free entrepreneurs of other distractions.

Third, financial support is weak.


(For more biz stories, please visit Industry Updates)



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