Five reasons why foreign entrepreneurs start a business in China

I think it is very good. Firstly, the support of the Chinese government is rather extensive, from incubators to subsidies, and a lot of supportive measures to facilitate entrepreneurship and innovation. However, there is much more that makes China a great place for entrepreneurs, including foreign entrepreneurs.

Secondly, the wide availability of money in the market, especially venture capital and private equity. In particular, Chinese private risk capital has started to mature and professionalize in the last five years.

Thirdly, the Chinese (consumer) market is large and growing. This means that entrepreneurs have possibilities to scale their business. It is a very particular advantage that the Chinese market has; business has room to grow more than in many other countries.

Fourthly, the policy and regulation is still changing and upgrading, which may mean new opportunities. Industries like internet finance, digital health and cross border e-commerce, are not fully regulated yet. So it is a good living laboratory for entrepreneurs to try out their business ideas. At the same time, when businesses grow up and industries mature, a better regulated environment in terms of consistency and clarity is desired.

Lastly, China’s environment for entrepreneurship is quite facilitative of building business ecosystems and external partnerships with stakeholders. It is relatively easy for entrepreneurs to find other partners, resources and investors; especially in cities like Shanghai, Beijing, Shenzhen and Hangzhou.

Read More: China Daily