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Xu Jinghong, the president of Tsinghua Holdings Co., Ltd delivers a keynote speech at the forum.[Photo provided to chinadaily.com.cn]
When entrepreneurship ran hot in 2014, Xu Jinghong, the president of Tsinghua Holdings, kept throwing cold water. Since the latter half of 2015, startups in O2O and the Internet financing fields have been shut down and many incubators have encountered operation difficulties, yet Xu expressed in an interviewed by a reporter from cnr.cn this is a normal phenomenon and many startups are still developing quite well.
According to Xu, it is correct for our country to advocate entrepreneurship in the transformation phase as it is necessary to arouse the entrepreneurial awareness of more people. Meanwhile, this advocacy has also has positive influence because service industry entrepreneurship has emerged prosperously.
“There is no different period for business starting,” Xu said. “It is just like our daily life and exists here and there. Entrepreneurship should be a kind of culture and spirit.”
Gao Jian, the director of the National Entrepreneurship Research Center of Tsinghua University revealed from a Sino-American startups comparison investigation, it is found that, when compared with the globally leading Stanford Science & Technology Innovation Incubation Base, America and China have small differences in seven out of the nine items and the real differences lay in culture and commercial environments.
Xu also expresses similar concerns, as China falls behind America in terms of core techniques, mastery of entrepreneurial essence and environmental creation. But the gap is closing.
“Our country should truly activate the positiveness and creativeness of entrepreneurs,” Xu said. “In China, entrepreneurs are at the disadvantageous status. But actually, it is the enterprises that finally put the R&D fruits to use.”
However, besides difficulty for startups, entrepreneurial space has also encountered trouble. The number of newly emerging venture organizations in the past two years is far higher than the total sum of that in the past 20 years.
“TusPark Ventures was established in 2006. It only invested in over 100 projects within 10 years,” Xu said. “However, some venture organizations announced to have invested in over 50 enterprises within 2 years. It disrupts the entire investment market. Objective valuation of pioneering enterprises requires strong professional investigation so as to form the scientific quantitative values. Many venture organizations take out unicorns that are not really recognized by the market, but that approved by some investors in terms of value assessment. Value assessment has a huge gap with the actual value; the non-professional value assessment has a huge gap with the objective assessment.
Xu predicted within two years, half the current unicorns in various programs and advertisements will disappear because they aren’t included with actual value.
Xu said the innovation dilemma Chinese scientific enterprises experience requires time, for both the country and its enterprises should have enduring strategies. He also said because the country has issued policies to mobilize, individuals can get at least 70 percent of the patent shares when the enterprises’ stock rights are formed and enterprises need to take initiative and become more creative.
