Beijing is putting its faith in entrepreneurship as part of its strategy of trying to deal with China's economic slowdown; as we have been noting, the country is trying to move away from the heavy industry and towards a more service sector-led model that is driven by consumption. According to Zero2IPO, China has set aside over RMB 2.1tn ($320bn) to invest supporting emerging entrepreneurs in the tech industry. Though there have been some successes, particularly Alibaba, China's ability to launch fast-growing companies has generally been limited to a few well connected individuals whilst state-owned enterprises continue to dominate huge areas of the nation's economy. The Chinese government also seems keen on encouraging entrepreneurship.
Beijing is putting its faith in entrepreneurship as part of its strategy of trying to deal with China's economic slowdown; as we have been noting, the country is trying to move away from the heavy industry and towards a more service sector-led model that is driven by consumption. According to Zero2IPO, China has set aside over RMB 2.1tn ($320bn) to invest supporting emerging entrepreneurs in the tech industry. Though there have been some successes, particularly Alibaba, China's ability to launch fast-growing companies has generally been limited to a few well connected individuals whilst state-owned enterprises continue to dominate huge areas of the nation's economy. Sun Yu of FT Confidential Research says this is about to change: “There has been a shift in attitude; the government wants to encourage everybody to set up a business, not just a handful of people”.