Preferential policies boost business startup

A survey of around 1,000 Shanghai college students graduating next year found 6.8 percent of them plan to start their own business, compared to 1.3 percent of the students who graduated in 2014.

In addition to government support policies, China's rapidly developing Internet technology also aroused the enthusiasm of entrepreneurs.

Statistics from the SAIC show there were 103,600 information technology and Internet-related companies registered during the first three quarters, a 98.5 percent increase from the same period last year.

Experts suggest that although they are in a favorable environment, entrepreneurs, especially those in the Internet sector, should improve their ability to innovate to avoid a short-lived business.

Zhang Chenghui, director of the Research Institute of Finance under the Development Research Center of the State Council, said, innovation is key to the startup businesses, for it can help the enterprises improve their competitiveness and realize industrial upgrading.

Ma Weihua, board chairman of Wing Lung Bank of Hong Kong, suggested financing institutions should innovate direct financing products and lower the credit approval standard to aid the development of small businesses.