Go East, young man

"We basically help foreign SMEs find products of the quality they need," White says. "These guys often have zero representation out here. If you order a container and it arrives in the UK not as you were expecting, you are in a bit of pickle. A lot of SMEs just end up selling it at a knock down price, and after that they won't deal with China again."

A group of British business people visit an animation company in Hangzhou. [Photos Provided to China Daily]

"A lot of first-timers coming to China work on far too many assumptions," O'Neill says. "They just assume things will go smoothly. They've been promised a price and they've seen a sample. For them to come over here and manage the process themselves might be difficult and incredibly expensive. Many SMEs can't afford to do that. We help mitigate the risk and place our reputation on it."

White and O'Neill understand better than most the problems encountered when setting up a business in China, but also appreciate that the country offers a unique opportunity to those young entrepreneurs and SMEs willing to put in the effort to make things work.

"I was attracted to China in the first place by the prospect of living in a dynamic economy experiencing huge economic growth," O'Neill says. "Certainly there is opportunity here. But you have to understand that if you are going to enter into business in China you are in it for the long haul. There is no quick buck. Be absolutely sure it is something you want to do and there is a gap in the market."

Thorough preparation is certainly at the heart of most of Europe's business success stories in China. Covering every possible eventuality, and even those you might imagine not possible, is key to developing a profitable enterprise.

One success story, and a prototype for foreign entrepreneurs looking to establish themselves in China without a great deal of financial backing, is Dominic Johnson-Hill.

In 2005 the British entrepreneur set-up Plastered, a t-shirt store in a Beijing hutong, and has since watched his brand become established among expatriates and locals alike. Along the way he has also appeared on Chinese television and picked up a series of awards, including the 2008 British Entrepreneur of the Year in China.

"I set up Plastered in a little hutong in Beijing, which was also my home," says Jonhson-Hill. "It was the only shop on the street at the time. Now it is the most popular retail street in Beijing and has become a platform for young Chinese people to set up their own creative brands.

"The concept was simple - to take everyday images from around China and plaster them on t-shirts. That is what we did and it really hit the mark and Plastered became a household name."

Johnson-Hill is the first to admit he didn't anticipate the success Plastered would have, and the retail revolution it would spark in a corner of Beijing. But he sees his success as indicative of the opportunities available to entrepreneurs who are willing to set up in China.

"I never really expected the success I have had. When I started out I was relying on foreign customers, but slowly Chinese customers started paying attention. It is a difficult concept to understand how to get a Chinese customer to buy something.

"It was a matter of putting focus groups together and talking to Beijingers about what they like. If you are trying to crack the Chinese market you need to understand the people as best you can and then make a product they will love."