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4.4 mln new enterprises registered in China in 2015

Reporter: Wang Tongxuan 丨 CCTV.com

05-02-2016 12:52 BJT

Last year, 4.4 million new enterprises were registered in China. That's around 12-thousand every day. Total startup capital -- or the money needed to start a new business -- hit 30 trillion yuan or five trillion US dollars. Most new businesses are still in traditional sectors. But an increasing number are providing new services and products. More than 200-thousand Chinese startups are developing new software and technology. Over 100-thousand are in China's cultural, leisure, and entertainment industries. Then comes finance, education and social work. Most of the new businesses are small, really small. So-called micro enterprises that employ fewer than ten people.

So where are they based? Unsurprisingly, Shanghai -- with its strong economy and talent pool -- tops the list. But Shenzhen and Guangzhou aren't far behind. The Pearl River Delta is a hub for science and technology. Beijing -- with its large educated workforce and great access to resources -- is a popular destination for startups. And you can't forget Hangzhou -- which is already home to a number of successful internet enterprises like Alibaba. So where do we see the real potential over the coming years? Experts believe that China's catering industry is piping hot, while the low-carbon or energy-saving industries, health services, baby products and online education are also warming up. Another interesting trend is that more overseas Chinese are moving back home to start a new business. I had the opportunity to speak with one of these in Beijing.

Henry Xu used to have a stable income with businesses in Australia. But he made a bold decision to return to China and start from scratch. His first foray into the Chinese market? A product for tremor patients, especially for those who suffer from Parkinson's disease.

"We believe we can do something for them. So we did one product - the tremor health handwriting recognize app can help recognize their handwriting," Xu said.

However, a good idea doesn't guarantee a bright market future.

After years of testing the market in different regions, Henry settled his team in Beijing's Haidian District -- the country's first technological innovation center.

The incubator center provides financial support, legal consultation, taxation and other administrative services -- all in the name of helping start-ups grow mature enough to tackle the market.

"We advised him to run his businesses in five different steps. First is to never stop researching and developing, to ensure your technology is the leader of the industry. Second is to define your product and your position in the industry chain. The third is to communicate with the manufacturers. Next is to lower the running cost, and finally, to improve your management skills," said Chen Ronggen, co-founder of Incubator "91Maker".

Zhongguancun science park is often called the Silicon Valley of China. It was created to pilot new ideas and development models for use nationwide. Small and micro-businesses like Henry's are incubated here to help spur economic growth.

In the past three years, more than 100 businesses received funding of over 600 million yuan, or about 100 million US dollars.

As public innovation and entrepreneurship become a new trend, young talents wish for their very own startup to take off.

"We prefer technology driven start-ups as we believe future innovation will be based on technology innovation," Chen said.

Henry's latest product is a mixed-reality headset. He believes high-technology should not just be reserved for a high-end business products, because it has the potential to serve the ordinary people.

"I believe that mixed reality will change human life in the future," Xu said.

And no doubt, it takes time and effort for that future to come.

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