Startups are booming and they will be for the coming years. Recently the state council has decided to increase the intensity of the focus on startups in the years to come. The National SME Development fund is called to life to help the small startups with their first steps. With 15 billion RMB from the government and 45 billion RMB from other partners, there is plenty to share1,2.
Already in 2014 approximately 3.7 million new companies were registered according to the Chinese government3. The goal of the fund is to heighten the chance of success for these starting companies and to further increase the amount of companies that dare to start.
The Chinese connectivity and therefore market also grows in a high pace. At the 15th of October the news was shared that 140 billion RMB is reserved for a further upgrade of the telecommunications network. The goal is to have 98% of the people connected to the internet by 20204. This increases the market for startups which are often internet based of heavily reliant on the internet.
Unfortunately it’s unclear whether only Chinese companies are to enjoy the fund, but this is highly likely. This does not stop several Dutch startups to take their chances. Some examples are ‘Datenna’, ‘Seedlinktech’, ‘Design2gather’, ‘AskLab’, ‘TradeChanger’ and ‘21brains’.
However, the question that remains is: how many of these start-ups will succeed into successful and durable companies that sustain economic growth and provide jobs. Only the future can tell, but off course this is a promising start.