Driven by Entrepreneurships
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In the 2014 Summer Davos Fo- rum， Chinese premier Li Keqiang talked about raising a new wave of “starting business by everyone”and “grassroots entrepreneurships” in China， which was put under the spotlight.
The experts point out that the Chinese government is trying to bring about better environment for people carving out their own business through series of streamlining the organization， decentralizing the rights and encouraging the innovation.
The Drastic Increase of New Enterprises
The number of newly registered enterprises is an important index to reflect a country’s enthusiasm and its driving force in starting new business. The increase of this figure usually foretells the enhancement of the economic vitality. According to the statistical data， the number of newly registered market players in China increased by 8 million in the first eight months of 2014， which had brought about jobs to tens of millions of people.
The Report about the Development of Market Players issued by the General Administration of Industry and Commerce shows that the number of newly registered enterprises reached 7.07 million in the first seven months of this year， 15.87% or 968.7 thousand units more than a month before. The amount of registered capital reached 11.12 trillion yuan， up 75.06% year on year. The newly registered enterprises share common features： most of them are engaged in the third industry where the number of new enterprises increased by 66.42% in July； the sectors of hi-tech， cultural entertainment and sci-tech service saw a great increase； and the private enterprises con- tributed most of the newly added jobs.
It is widely believed that the crazy increase in the number of newly registered enterprises is a good sign for the economic development of China. “It is not hard to find out from the statistical data that many of the newly registered enterprises are small ones engaged in the service industry and run by private investors. This is not only good for promoting the market vitality， improving the circumstance for innovation and entrepreneurships， and boosting the healthy and sustainable development of economy， but also helpful to further optimize the ownership structure of Chinese economy，”says Zhang Yongjun， a fellow with China International Economic Communication Center.
Combined Efforts to Encourage Entrepreneurship
Once for a while， there were too few entrepreneurs who started their business from scratch in China. This is a problem that has been haunting the Chinese economy for a long time. Now， the situation is changing as the grassroots entrepreneurs， referring to the ordinary young people who start their business almost from zero， are rising in China. According to the statistical data， there had been 470.222 million private-run business units in China by the end of this July， up 11.33% year on year. The number of specialist operatives for peasants amounted to 1.1929 million units， up 39.28% year on year.
Experts point out that the change is a result of the government’s combined efforts to encourage the entrepreneurship. “In recent years， the government has taken a series of measures to encour- age the ordinary people to start their own business. First of all， they are going to decentralize the administrative examination and approval rights for hundreds of items， removing the government hands from where it should not touch and reducing the unnecessary disturbance for the entrepreneurs.
“Secondly， the reform to the registered capital system lowered the threshold for establishing new enterprises， which is good for those with patents and technologies to start their own business. Eventually， when the government no longer intervenes in the business， the market force will play a more important role in the allocation of production elements so as to bring a fairer and more relaxed market for the starters，” says Zhang Yongjun.
Li Keqiang pointed out in the Davos Forum that the Chinese government needs to have a complete “list of rights”to get clear of what the government should do. On the other hand， it should have the negative list to tell what the enterprises should not do.
Prof. Liu Xiaochuan with the Public Economy and Management School of Shanghai University of Finance and Economics， says： “The government encourages and supports the self-employment via various channels. There are concrete measures， such as the streamlining of the administrative approval procedures， the favorable policies in taxation， the tax reduction and cancellation in the initial period of development. The government usually provides venues and sites for the young entrepreneurs and offers them low-interest loans or even free funds.
Governmental Support Needs Improvement
As the Chinese government is trying to shift from “management-oriented government” to “service-oriented government”， the experts suggest that it should innovate its management pattern to provide more meaningful assistance for the self-employed ordinary people. Only in that way can the entrepreneurship become the reliable engine for the Chinese economy.
“The Chinese government’s supportive measures need some improvement. For example， it could further standardize the service procedures to reduce the regional difference. In addition， it could fix different supportive measures for different industries and business to have the resources allocated to more skilled， experienced and market-oriented self-employers. In addition， the government could recruit more enterprise funds and support the business starters through fund participation.