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Be Your Own Boss.doc

1、1Be Your Own BossSINCE the emergence of Chinas first private business in 1980, the proportion of private enterprises in the national economy has grown steadily and swiftly. In 2004 the government enacted an amendament for the protection of private property in the Constitution, and in the following y

2、ears created a series of policies that encouraged individual entrepreneurship. These efforts prompted a wave of start-up businesses and formed the catalyst for the rapid development of the private sector. Despite the impact of the global financial crisis, in 2008 Chinas private economy still experie

3、nced faster growth than seen in the previous four years. By the end of 2008, the number of registered private enterprises had reached 6.59 million nationwide, with a registered capital of RMB 11.74 trillion; and the percentage of private enterprises to domestically funded ones increased to 70.9 perc

4、ent from 63 percent in 2007, generating nine million additional job opportunities. Grassroots Effort 2Xu Wengang, a 36-year-old rural villager of Suqian City in coastal Jiangsu Province, got himself a job at a local factory after graduating from junior middle school. By 2009 he had brought his month

5、ly income up to over US $400; together with his wifes earnings from her part time work and the income from their crops, their budget supports a relatively stable and affluent life. Back in 2001, Xu invented a new type of expansile screw, and applied for a patent. However, he carried on with his fact

6、ory job, never giving another thought to prototyping his invention and developing a new product. It was not until April 2009, through the encouragement of the local government and the support of his family, that Xu made up his mind to resign and start his own business. In the beginning, due to lack

7、of funds for setting up his own factory, Xu had to contract out the production to a partner and only sold the products himself. He was often away from home for weeks on marketing trips. Before he saw any substantial sales revenue, his partner developed financial troubles that forced him to withdraw

8、from the joint venture. Fortunately, a friend of hapless Xu came to his rescue, suggesting he sign up as a contestant for the 3Fourth Suqian City Entrepreneurship Competition in October. Xu took first place, winning a prize of US $500 and a start-up fund of nearly US $5,000. That event helped him re

9、alize the first step in having his own business in his hometown ?C his dream. Although Suqian is part of the prosperous east coast, it is one of the few conservative exceptions in the region,economically underdeveloped and relatively backward. Local villagers are content with a simple and easy life

10、as long as they have enough to eat and wear. Even creative minds like Xu would typically hang back from venturing into something unknown. However, the local government is determined to disturb the stagnent conditions by developing the local economy. In recent years, it has spared no efforts toencour

11、age and guide local people to explore entrepreneurial ventures. The Entrepreneurship Competition is one of the vehicles. A municipal government official in charge of the event told China Today: “The professional knowledge that private enterprise requires is teachable, but entrepreneurial spirit, ent

12、husiasm and confidence needs a nurturing environment and a longer process to foster. These are aims of the competition.” 4The efforts have paid off. In 2008, over 40,000 private companies and individual industrial and commercial entities were established among the local population of 5.3 million, re

13、sulting in a 40 percent year-on-year rise in tax revenues for the city. The Governments Guidance For a populous country like China, the private entreprise sector is significant for growth, not only in terms of promoting economic development, but also in solving the nations unemployment problem. The

14、figure 1.3 billion is intimidating for any administration. Of rural Chinas 900 million population, around 200 million have left their hometowns in search of work in cities; but that still leaves the majority at home, either unemployed or semi-employed. The urban areas were not much better by the end

15、 of 2008; they too stared at unemployment figures exceeding 8 million, shuddering at the thought of 1 million university graduates joining them each year upon graduation. The situation has been the major impetus for prompting the 5Chinese governments push for private enterprise. The primary driving

16、force was the revision of Chinas Constitution specifying the inviolability of private property. In addition, the central government continues to encourage college graduates to take on official posts in rural areas, a move that relieves some of the unemployment pressures for college graduates. In ret

17、urn these college graduates are asked to assist local farmers in initiating their own businesses. The General Office of the State Council has carefully rolled out a series of grants and subsidies to help returning migrant workers to become self-employed. In early 2009 the Ministry of Human Resources

18、 and Social Security listed 86 cities as the first group of state-level “Enterprising Cities,” packaged with small-sum secured loans for entrepreneurs in those cities. Statistics showed that in the second quarter of 2009, the 86 cities issued RMB 17.1 billion in such loans to 1.59 million private st

19、art-ups that created 2.12 million jobs. Local governments around the country have begun rolling out similar supportive measures for new start-ups in tune with their local conditions. The government of Anhui Province, for example, has helped build 253 new business incubators scattered across almost e

20、very county and district in the province, with 6the stipulation that each incubator provides at least 200 job opportunities. In June 2009, the government of Sichuan Province allocated RMB 50 million to sponsor college graduates to hang out their shingles. The government of Nanjing, capital of Jiangs

21、u Province, has pledged to help the 10,000 home-based businesses started by its unemployed citizens each year, in the form of social security subsidies, secured loans and tax exemptions. Joint Efforts from Society Some well-known enterprises and public institutions are eager to take up the baton of

22、social responsibility. The Communist Youth League of China and All-China Youth Federation jointly launched the Youth Business China project, aimed at assisting the nations youth in growing their own businesses. The project, modeled after the Youth Business International program in Britain, will mobi

23、lize resources from all sectors of the society but primarily the industrial and commercial circles, to offer assistance in terms of information, capital and technology to bootstrap new start-ups. Funded by businessmen from Zhejiang Province, a business 7incubator for college graduates is under const

24、ruction in Hangzhou. Upon completion, it will be the largest park in the citys economic and technological development zone. At 23,000 square meters, it will be capable of housing 200 companies. Additionally, many top enterprises have gone ahead with their own assistance programs. Lenovo offered fina

25、ncial aid to college graduates or young entrepreneurs. In September 2009, Kaifu Lee resigned from his position as vice president of Google and Googles China chief to start a new incubator called Innovation Works, providing a business platform with capital of US $800 million specifically to nurture a

26、 new generation of Chinese innovators. In such an atmosphere, Chuangye Yingxiong Hui (Entrepreneurial Heroes Meet), a TV program produced by China Central Television, was bound to score high audience ratings. The program premiered on January 1 2009 during prime time, designed to help young people le

27、arn the art of launching new businesses that will offer employment to others. Five top-drawer Chinese entrepreneurs, namely Yin Mingshan, Liu Chuanzhi, Ma Yun, Liu Yonghao and Guo Guangchang, were invited to share their expert opinions and discuss the complex process of launching enterprises with th

28、e young participants. On top of 8that, the program broadcasts stories of real start-up experiences from around the country to inspire other young Chinese innovators. Several other local TV stations followed suit and produced similar programs. Among them, Call Me Boss, broadcast on Shanghais Dragon T

29、V, enjoys the highest ratings. This 20-episode reality television show premiered during the 2009 summer season and broadcast over four weeks, attracting 22,787 people to register for participation. Twenty individual winners shared the start-up fund of RMB 20 million. The List of the Nations Wealthie

30、st College Graduates with their Own Business issued jointly by the Chinese University Alumni Association (CUAA) website and 21st Century Talent Report showed in its June release that 90 percent of those listed had raised funds independently, and nearly 50 percent amassed wealth exceeding RMB 10 million. Most of the young business stars were born after 1980.

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