Entrepreneurship Being Embraced in China Amidst Warnings of Economic Storm

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According to an article by Dee Woo for www.firstpost.com, the economic storm that has hit several countries including Greece, the United States and Europe could be headed for China. According to the author, stories of businessmen trying to escape the sudden economic crunch were recently becoming so serious that many were committing suicide or fleeing the country in hopes of a better life. Woo added that the deteriorating conditions seemed to be headed upward after public outcry caused the People’s Bank of China to alleviate their liquidity crisis in December of 2011, by cutting the reserve requirement. But Woo feels that monetary policy alone will not fix all of the deficiencies in the structure of the Chinese economy.

Thankfully, another solution is beginning to take hold that could help to alleviate the economic storm that is brewing. The method is the same that is being used in other countries affected by this storm such as the United States and Europe. That solution is entrepreneurship. Although governments often create stumbling blocks for entrepreneurship, some are beginning to realize that it is perhaps the overall best solution to the economic crisis that is impacting countries around the world. Turkey’s economy is currently being boosted by entrepreneurship, as is the economy of Afghanistan. And in the United States, while politicians battle it out for the upcoming Presidential election, entrepreneurs are busy creating the jobs which these politicians can only promise. And now China is also embracing entrepreneurship as a way to enhance their economy.

A recent article in the Huffington Post from Steve Mariotti shares that youth entrepreneurship has been growing in the nation of China. Students in that country have started their own small businesses in many different genres including handcrafted items, computer repair, refurbished cell phones, restaurants, recycling and farming. Steve shared his story of a recent visit to China and how he met the top fourteen young competitors in an entrepreneurial business plan competition. He said that these young people were the same as young people everywhere; they had their own hopes and dreams and the desire to do well in life. What they also possessed is a unique knowledge of what their community wants and needs and the opportunity to use entrepreneurship to meet those needs.

Mariotti went on to share that these kids, who were involved in the NFTE/Bright China program, had been inspired through the organization to start their own businesses. Otherwise, they likely would have become factory workers, surviving on a low income. Students can borrow as much as $4600 from Bright China in order to start their own business and these loans have thus far been paid back around 95% of the time. He adds that there are many opportunities in China for young entrepreneurs to develop their ideas for businesses and ways to help their communities.

Another article posted in www.justmeans.com tells of one of those opportunities. Author Vikas Vij tells of a unique nonprofit organization, known as the Non Profit Incubator (NPI), that encourages social entrepreneurs in China. According to Vij, NPI provides guidance and support to new entrepreneurs for their start-ups and social enterprises. It is the first of its kind in China and its focus is to help make the social enterprise sector of China much stronger. In the article, Vij explains that NPI currently has a total of RMB 50 Million in funds that are dedicated for the venture philanthropy that it introduced in 2007. Over 300 social enterprises and nonprofit organizations are supported by these funds. NPI also created the Shanghai Social Innovation Park in 2010, where creativity is being utilized by several social entrepreneurs. NPI’s next project is said to be its most ambitious. NEST Shanghia (Nexus of Social Innovation and Community Development) is a multi-million dollar project that will be created in the old Municipal Orphange in Shanghai, China. It is expected to be a 24,000 square foot hub of collaboration and innovation between the social sector, the business sector and the government, according to Vij, and will be a beacon for social entrepreneurship for not only China, but all over the globe.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eweekcomauthor@gmail.com. Follow Angela on Twitter. Find her on Facebook .

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Tags: Afghanistan, business sector, China, economic crash, economic storm, economy, entrepreneurs, Entrepreneurship, Europe, Greece, Municiple Orphanage, nonprofit, Shanghai, social enterprises, social entrepreneurship, Thailand, United States, young

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