Age no longer a barrier for entrepreneurs
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E-mail Shanghai Daily, April 18, 2016
At just 21 years old, He Yihao, a senior student at East China University of Science and Technology, is running his second company in Shanghai, while Cao Guanquan, in his 60s, is trying to start up a new business.
Such young or old entrepreneurs were rare in the city 10 years ago, but are increasing as the government and society in general have begun to strongly encourage innovation and business startups.
A survey of some 6,000 local residents aged between 16 and 64 showed that 11.5 percent of them were startup entrepreneurs, a dramatic increase over the 4.9 percent figure for 2005 when the survey was initiated, according to a report released last week by Shanghai Employment Promotion Center.
Cao said the increase was not surprising because there were limited resources allocated for people starting up businesses a decade ago.
He had directed several state-owned electromechanical equipment factories and quit in 2006 during the reformation of state enterprises.
He decided to start up a company on his own because he wanted to prove that he was capable of being an entrepreneur.
“Many people had said that leaders of state-owned enterprises had no real ability, and our achievements were due the sound foundation of the company and our relationship with the government,” he said. “I wanted to show people that I can do something without those privileges.”
At first he had no idea what to do, but after talking with friends and visiting the companies they worked for, Cao decided to create a device for recycling plastic waste to produce liquid fuel.
“Plastic waste is difficult to process. Many companies were trying to recycle it, but they did not have adequate equipment,” he said.
Cao then spent almost two years studying chemistry books and consulting professors at local universities before designing and patenting a machine that could do the job.
But turning that machine into a commercial success meant he needed startup funding.
“There were not many investors available like today,” said Cao. “So I asked friends to recommend some wealthy people who would help me.”
He eventually established a company in 2008 with the help of a wealthy partner.
“It was not a good idea as the man did not understand the environmental industry or my product well,” he said.
“He just wanted to make money soon by listing it on the stock market.
“But I wanted to develop more products and expand our company first.”
Due to disagreements between them, the business grew slowly and no profits were made even though Cao had spent a million yuan on research and operating costs by 2014. He then left with his patents and sought investment from companies that showed a genuine interest in his work.
Cao is more confident than he was six years ago because the business environment has improved so much in terms of access to incubators and more favorable government policies.
“There are so many incubators and innovation parks around the city now, providing offices, subsidies and access to investors, as well as lectures and other services facilitating business startups,” he said.
“I have talked to some people who are interested in my project.”
Cao said he has found a new investor and is hoping to start a new company in June.
“With this kind of supportive environment, I won’t have to waste much time,” he said.
But Cao said many current policies and services cater more to young people and new industries.
“It is understandable because young people are the main drivers of innovation and entrepreneurship,” he said.
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