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 the State Council 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”.
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”.