Students with advanced degrees less likely to start businesses: Report

Students pose in front of the gate of Renmin University of China on June 20, 2016 in Beijing. [Photo/IC]

A report on entrepreneurship among Chinese college students published by Renmin University of China revealed an inverse proportion between the level of students' academic degrees and their intentions to start their own businesses. According to the report, released on Dec 28, students from prestigious universities were less willing to start businesses, likely because of high opportunity cost.

A total of 430,000 students from 1,767 universities in 31 provinces were surveyed. Of the respondents, 89.2 percent had considered starting a business, with 18.2 percent reporting firm intentions to do so. More than 70 percent said self-realization was the biggest motivation to start a business.

Common industries for college startups include catering, agriculture, IT, transportation, education and culture. According to the report, 13.8 percent of the entrepreneurs were interested in hospitality and catering, while 13.7 percent choose agriculture. Ninety percent of the students believe their universities' guidance on entrepreneurship would help their future businesses. In addition, they professed appreciation for policies intended to encourage entrepreneurship.

The report found that students majoring in art, agriculture and engineering were more willing to start businesses, while those majoring in history and science showed relatively low interest.

A lack of capital and experience is the biggest obstacle for college entrepreneurs, the report suggested, stating that 40 percent of such young entrepreneurs rely on external capital such as loans from banks, investment organizations, schools and the government.