What should I do if college students start a business without collateral and traditional institutions do not lend money?
Under the wave of mass entrepreneurship and innovation, entrepreneurship is becoming a choice that young students are willing to try. According to the Max Research Institute's2016 China College Student Employment Report" shows that the proportion of college graduates employed in employment has declined, while the proportion of further study and entrepreneurship has continued to increase.
On the other hand, how to obtain funds is a key obstacle that restricts the development of entrepreneurship. The China Entrepreneurship Research Center of Tsinghua SEM recently released the "Global Entrepreneurship Observation China Report" (2015/2016)” shows that more than 90% of Chinese entrepreneurs’ funds come from their own funds. While bank loans, venture capital, government projects and crowdfunding are also sources of entrepreneurial capital, the proportion is still lower than in most innovation-driven economies.
The reason is that, on the one hand, w88 sports betting is difficult for college students to start their own businesses through traditional credit enhancement channels such as mortgages and guarantees; second, traditional credit institutions cannot judge the credit status of student entrepreneurs.
However, with the popularization of mobile payment and other methods, cashless transactions have been implemented in more and more scenarios, which also makes fund transaction information clearer and traceable. These rapidly accumulated data assets, after technical analysis, have generated risk control methods for thousands of people. This logic also allows new ways to solve the difficulty of college student loans.
Financial difficulties become constraints to starting a business
Xiao Hu, a college student in Henan Province, started his own business before graduation, taking his first step by selling tea sets and doing tea art training. But when he wanted to further expand his business, the loan channels made him very hesitant.
“I know that there is a certain interest-free policy for entrepreneurial loans for college students, so I hope to give w88 sports betting a try.” According to the procedure, he first had to go back to his hometown to register for unemployment. Because he had an agricultural registered permanent residence, his application was rejected. After coordinating with several departments, this certificate was reluctantly issued. Later, Xiao Hu discovered that with the unemployment certificate, he also needed to provide a temporary residence permit, etc. This required the community or street to provide w88 sports betting, and also required extremely cumbersome procedures.
"I gave up in the end. w88 sports betting has been more than ten days from the beginning of preparation to the final step, and I can't wait for the operation to start. And I don't know how much I can borrow, so I might as well choose other ways." Xiao Hu said.
In fact, the problems Xiao Hu encountered are common problems encountered by domestic college students in the process of entrepreneurship. In the long journey of starting a business, the problem of funding is the first hurdle on the road.
The "Report on the Current Situation of Youth Entrepreneurship in China" (2016)" shows that funding problems are still prominent in the process of youth entrepreneurship, mainly due to high entrepreneurial costs, difficulty in financing, and limited government preferential policies and financial support. "Looking at the subsequent sources of funds for entrepreneurs, although operating income accounts for a certain proportion, w88 sports betting is still difficult to fully meet the development needs of most enterprises and projects. They also need to rely on their own funds and financing from others or financial institutions."
A grassroots person admitted to the author that the loan policies in some areas do lack foresight.“The cumbersome procedures for students to seek small loans in society have indeed greatly hindered the entrepreneurship of college students.” According to him, the loan policy requires borrowers and their family members to have no other loan records from commercial banks other than student loans, poverty alleviation loans, and first-time home loans. In addition, w88 sports betting is difficult for young entrepreneurs to find counter-guarantors who are qualified and willing to help. Real estate guarantees are even more difficult for many people.
Therefore, borrowing from friends, family and even other institutions has become the most popular way for entrepreneurs.
Why does this happen?
Dr. Bao Chunlei from the Institute of Labor Science of the Ministry of Human Resources and Social Security and his team conducted research on Jiangsu, Fujian, Guangxi, Chongqing, Guizhou, Shaanxi, etc. last year14 cities in 6 provinces (cities) were surveyed and visited. In his view: First, loan channels are limited. More than 76% of young entrepreneurs give priority to borrowing from banks or credit unions, and there are still many new methods that have not been utilized. This is affected by the awareness of Internet finance and interest rate considerations. The second is the lack of effective credit enhancement methods. Loans from traditional financial institutions or related units lack collateral or guarantees, leading to failure.
In the case he encountered, a young entrepreneur engaged in wedding supplies was very typical. Zhang Xin (pseudonym) from Fujian opened a wedding gift and event planning company in Wuhan. The capital to start the business came from hundreds of thousands of yuan earned from working before starting the business. For the subsequent funds for operation and expansion, he relied partly on profit support and partly on credit cards.“I have also applied for a loan, but I can’t get a loan from the bank without fixed assets.” In addition, the Internet has also given Zhang Xin a lot of help. "Borrowing can be used. I know that one is equal principal and interest, and the other is interest first and principal first. The interest rate is higher. I usually choose equal principal and interest because w88 sports betting is a short-term capital turnover, three months or six months, so the interest rate is acceptable. The key is convenience. The interest rates of external loan companies are higher and the procedures are cumbersome. I don't want to have to deal with a lot of materials just for 20,000 to 30,000 yuan."
According to Zhang Xin, relying more on Internet management tools is also a way to reduce costs,“I usually use Alibaba’s DingTalk for work. When I ask for leave, I send w88 sports betting to me through DingTalk. I don’t have much demand for inventory management, so I generally use w88 sports bettingEXCEL, because the tools are too expensive.”
data“Valuation” breaks mortgage worship
On the one hand, novice entrepreneurs are hungry for funds without mortgages and guarantees, and on the other hand, traditional institutions have no way of knowing the ability of borrowers to repay their loans.
A person from the grassroots human resources and social security department said bluntly: We often encounter students who come and say they want to start a business, but there is no way to prove that they start a business, and we don’t know if they can repay the money. They may use the money in other places, and we cannot monitor w88 sports betting.”
In fact, the convenience brought by cashless transactions is changing this dilemma.
While making capital transactions more convenient and efficient, the accumulation of transaction data also explodes into amazing value. Especially in some areas where there is sufficient online data accumulation, utilization can already be realized through large models and strategic analysis“Data” is an intangible asset to complete credit evaluation and effectively solve the dilemma of insufficient collateral for college student entrepreneurs.
Similar to Zhang Xin mentioned above,“Qing Cheng” is a post-95s entrepreneur. She does entirely online business—opening an online store, with an annual transaction volume exceeding 10 million yuan. According to her, in the first six months of starting her business, her daily transaction volume was only 200 yuan, and her profit was only a dozen yuan.
Qingcheng discovered that she had accumulated every dayMore than 100 transactions have turned into a treasure. The loan conditions of MYBank seem to be tailor-made for her - no mortgage or guarantee is required. Just relying on the transaction flow data on Taobao, w88 sports betting can evaluate the credit and provide w88 sports betting with a line of 70,000 yuan. Because of its high Zhima credit score, the differentiated interest obtained is similar to that of a credit card.
With this money, Qingcheng purchased winter models and began to try live broadcast promotion methods, and with the help ofWith the “Double Eleven” promotion, capital turnover finally entered a virtuous cycle at the end of the year. In the past two years, MYbank has provided Qingcheng with a total of 261 loans, and none of her loans have been overdue.
In April, Ant Financial and the United Nations Environment Program launched a cashless alliance, and Qingcheng became the first member to join.
This alliance advocates the use of cashless transactions by merchants, so that every transaction can be converted into data, and a credit system is established for small and micro enterprises and individual entrepreneurs who do not have credit data. w88 sports betting will be launched in the futureWith the "multiple uses, multiple loans" service, the problem of college students' difficulty in getting loans for starting a business is expected to be solved.
According to relevant surveys, when college students choose entrepreneurial projects, the first thing they pay attention to is good market prospects, and the second thing they are willing to choose is those with less start-up capital and low entrepreneurial risks. As for the field of college student entrepreneurship, Bao Chunlei’s research through visits to makerspaces shows that most of them focus on e-commerce and“Internet+” field.
In fact, many college student e-commerce entrepreneurs have high credit and borrow frequently, but they repay their loans promptly. data display,The number of college student e-commerce entrepreneurs using loans to operate their businesses in 2016 was 7.5 times that in 2013. According to data from MYBank, the loan non-performing rate for college student e-commerce entrepreneurs is only 0.2%, which is 1/9 of the average credit card non-performing rate.
The low non-performing rate is partly due to the emphasis that college students entrepreneurs place on credit, and w88 sports betting is also a reflection of MYbank’s risk control strategy: converting user payments, consumption, transactions and other behaviors into data and combining them3.5 billion+ associated network data, creating more than 100 prediction models and more than 3,000 risk control strategies. With these technologies, on the one hand, entrepreneurs can get loans with credit without guarantees and mortgages; on the other hand, they can effectively control bad debts to a very low level. Data shows that small and micro loans in third-, fourth- and fifth-tier cities account for 58% of online merchant banks. Data + technology is making regional differences in financial services begin to narrow. Data from MYbank shows that over 60% of small and micro enterprises receive more than 50 loans a year, and the average loan cycle per household is only 7 days.
After the two stages of credit establishment and fund raising, technology export capabilities help these entrepreneurial small and micro enterprises to go further.
w88 sports betting is understood that MYbank currently supports more small and micro enterprises in a platform-based manner by exporting technology to other e-commerce platforms and financial institutions. Has gradually become Zhejiang ProvinceA technology platform company that provides information system services to 294 small loan companies in 87 county-level administrative regions.
The aforementioned venture capital institutions said bluntly: For some entrepreneurs, providing funds is only the first step. Are you really going to solve everything once you have the funds? After the money is given to you, can you make full use of the funds? Are you able to organize a team effectively? How can you break through your technical capabilities?”
According to "Global Entrepreneurship Monitor2015/2016 China Report” shows that entrepreneurial companies in innovation-driven economies are more likely to grow into mature companies. The rate of early-stage startups (companies operating for no more than 42 months) in China is 12.84%, while the rate of established companies (companies operating for more than 42 months) is 3.12%. The two values are closer for innovation-driven countries. w88 sports betting shows that the sustainable development capabilities of entrepreneurial enterprises need to be enhanced urgently.
Bao Chunlei once met a young man who did a job in a third- and fourth-tier city during researchO2O food delivery platform, but he transferred 49% of his shares for 100,000 yuan. “Young entrepreneurs can easily make such mistakes, but when they look back, they realize that they have lost tens of thousands of yuan, and their future may be gone.” In his view, around young entrepreneurs and small and micro enterprises, some institutions can provide platform-based assistance, including a package of support in terms of capital, technology, and financial management, to support entrepreneurs from zero to one, and from nothing to something.
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