Report on China youth entrepreneurship released

People aged between 25 and 35 account for the largest percentage of China’s young entrepreneurs who are aged between 18 to 44, according to a newly released report by the National Entrepreneurship Research Center of Tsinghua University’s School of Economics and Management in Beijing on Jan 29.

The report, targeting Chinese entrepreneurs between 18 and 44, proposed that young people are the most active group in the whole population in terms of partaking in entrepreneurial activities.

The "early-stage startup index" of China, one of the report’s findings, was 18 percent, placing China 22nd among 70 countries studied by the center, which meant the country is regarded as "active" in entrepreneurship.

This is the 10th report of its kind by the National Entrepreneurship Research Center of Tsinghua University’s School of Economics and Management.

The center joined an international research project launched by Globe Entrepreneurship Monitor, which indexes the level of entrepreneurial activity across countries. It collected 3,500 samples from China in 2014.

Here are more findings:

The characteristics of youthful entrepreneurship

1. The most active entrepreneurs are in the 25-35 age demographic, followed by the 35 to 44 demographic.

2. About 60 percent of the entrepreneurs in the research did not receive a higher education, while nearly two fifths of them did. Those who have a bachelor's degree, and associate degree holders, account for 12.2 and 27.5 percent, while the proportion of the nation’s whole population is 9.2 and 21.6 percent. In the US, the data is 51.7 and 33.5.

3. The entrepreneurial motivation of young entrepreneurs has much to do with their education background. Entrepreneurs can be divided into two parts: to seek opportunities and  survive.  Research shows that the efficiency of these two kinds of entrepreneurs is different.The former  will have more growth potential. About 22.2 precent of young entrepreneurs receiving primary school education are more likely to be the latter group while more than 70 precent of entrepreneurs with higher educationare are the former group.

4. Young people with their own business are more satisfied with their career and life than those non-entrepreneurs. The report shows that over 50 percent of young entrepreneurs satisfy with their life.

5. Young entrepreneurs' funds are from three main sources: 36 precent from friends, 34.7 precent from families and 16 precent from relatives.

6. Young entrepreneurs’ suggestion come from four main sources: 73.9 precent from friends, 52.6 precent from spouse or partners, 45.7 precent form parents and 39.2 from families or relatives.

7. Three main reasons why young entrepreneurs left their business: the business is not good any more (37.5 precent); personal reason (29.2 precent) and find better opportunities(13.9 precent).

The differences of the post-1980s and post-1990s generations’ entrepreneurial activities:

1. The post-1980s generation in China has been the most active entrepreneurial group, with an early-stage startup index of 21.34 percent, compared with 14.32 percent for the post-1990s generation.

2. About 31.1 percent of the post-90s generation interviewed said they would set up their own business in three years, without fear of failure. Those who think they themselves did not have the capabilities of entrepreneurship in the post-90s generation are less than that of the post-80s generation. However, both of the two groups think starting up their own business is a good choice for a career.

3. Seeking opportunities is the key motivation for both the post-80s and post-90s generation, accounting for 66.5 and 68.9 percent of all motivations named.