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Chinanews, Beijing, July 20 – A recent report shows that China is at a time when lots of people are active in starting their business or work in newly established companies. In China, related index that measures people's enthusiasm in working in new enterprises now reaches 16.2, which means that among every one hundred people aged1 18-64, about 16.2 people on average have established or work in a company that have just opened for less than three and half years. Among all countries that are included in the report, China ranks sixth in its people’s interest in new companies.
The report, titled "Global Observation on China's Interest and Activity in New Companies" (2006), was released on Thursday. Last year, Chinese people were not as active as the United States or Australia in their enthusiasm for new companies. This year, China has performed better in this aspect. Generally speaking, people in Asian countries are more active in starting or working in new companies, since among the top ten countries included on the list, four are from Asia, said Cheng Yuan, associate professor of the School of Business Administration at Tsinghua University. New business has contributed more to China's GDP these days, said Cheng, adding that this will make Chinese economy more stable. With new companies, more new products and techniques will appear in the market. In addition, these newly established companies can help boost export and create more job opportunities, all of which are very important to keeping economy further economic growth, Cheng said. The report shows that 60% of the new entrepreneurs start their business with less than 50,000 yuan. The capital they need to start their business come from their family members, friends, neighbors, relatives, financial institutions, or colleagues. The report also shows that over 40% of the business starters can earn profits in at most 3 months and most business starters are optimistic about their company's prospect2.
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