International Business w88 casino Chen Shengjun:Grads in China not taking the plunge

(Source:《The Straits Times》Date:2013-10-14）

The problem of declining entrepreneurial spirit among graduates has captured the attention of even China's Premier Li Keqiang and its richest man, Mr Wang Jianlin.

Beijing-based w88 casino professor Chen Shengjun said restrictions and monopolies in sectors such as the financial and energy industries make it hard for budding entrepreneurs.

"People make rational decisions so the problem lies partly with an environment that doesn't give them incentives to take risks," he added.

Such obstacles have killed the entrepreneurial dreams for some like Ms Joy Li, 25, who flirted briefly with the idea of starting a floral business after graduation from university.

But the hefty capital and bureaucratic hassle proved too great and she decided to be a civil servant instead, working for the Hebei government's environmental arm.

"My parents said I should just work with the government first anyway to gain some experience and to make contacts," she said.

Some experts say this trend could hurt China's plan to use innovation to drive its next phase of economic growth.

Moreover, the risk is that China's best and brightest are either leaving the country in search of greener, more business-friendly pastures or being underutilized at government jobs, they add.

Dr Wang Huiyao, director-general of Beijing think-tank Center for China and Globalization, said: "If many graduates don't create new enterprises, it will be difficult for China to create new job opportunities as well. Without entrepreneurs, it is also hard to foster innovation."

Beijing, cognisant of this risk, has taken steps to rekindle entrepreneurship. Measures have been rolled out with new graduate entrepreneurs receiving a two-year tax waiver. The government has also promised assistance such as training subsidies and small loans.

China's elite universities, such as Tsinghua, have also set up "incubator programs" to help entrepreneurs develop commercial applications for research conducted at the universities, the Wall Street Journal reported.

Still, Dr Wang urged that more be done for budding entrepreneurs such as expanding pro-business policies, mentorship programmes, or partnering young graduates with successful businessmen.

Prof Chen thinks the key lies in making failure more acceptable in China. "The current mindset is that if you fail, you are doomed," he added. "We need to change that and build a society that does not judge failure harshly."

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