Lijiang to increase allowance for youths starting businesses

In 2014, Lijiang will issue business start-up loans of 3.58 million yuan ($580,000) to encourage youth business start-ups and increase employment opportunities.

A special team to work on encouraging youth business start-ups was set up in March to inspect youth business start-up projects. By June 30, 76 pieces of allowance application forms had been collected and 30 young people had received business loans totaling 2.13 million yuan ($340,000). Also, Lijiang has supported unemployed youth with guaranteed microcredit loans of 1.45 million yuan ($230,000). The business start-up projects have covered a variety of industries, such as farming, educational training, media and fashion design.

For university students, the loan volume has increased from 50,000 yuan ($8,069) to 100,000 yuan ($16,139). Their business start-up projects will be assessed to see if the business prospects are good. If the prospects are good and the students have high credibility and good repayment ability, then they will get the maximum loan of 100,000 yuan ($16,139). In 2014, nine loans have been given out. Six of them were as high as 100,000 yuan ($16,139).

At the same time, youth will be organized to attend training sessions to improve their business ability. The training sessions will be lectured by university tutors and successful businesspeople. Also, one-to-one supervisors will be arranged to help youths start their own businesses.