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  • Startup Rate of Chinese College Students 10 Times Bigger than Korea
    2019-06-03 hit 175

    Startup Rate of Chinese College Students 10 Times Bigger than Korea

     

    - KITA compared startup ecosystem for University students in Korea and China It is important to create private fund for startups and develop professionals -




    The number of Chinese college students who are willing to start a business is five times more than that of Korea, and the rate of the startups launched by Chinese college graduates is ten times more. 

     


    According to a report titled, ‘A Comparative Study of the Startup Ecosystem for College Students in Korea and China issued by the Institute for International Trade (President, Shin Seung-kwan) of the Korea International Trade Association on June 3rd, last year, 8 percent, 637,000 of Chinese university graduates began their own businesses while 0.8 percent, 4740 of Korean college graduates launched startups.


    The number of college students who are willing to start a business is 89.8 percent in China and 17.4 percent in Korea, showing the gap bigger than 5 times. The number of college students who are willing to start a business is 89.8 percent in China and 17.4 percent in Korea, showing the gap bigger than 5 times. In particular, only 8.1% of Korean science and engineering graduate students with technological skills want to run their own businesses.

     


    The report points out, "China is actively promoting startup funds through private partnerships such as alumni associations and corporations. However, independent investment is difficult in Korea as 75 percent of the start-up funds for college students rely on government fund of funds. In China, various private funds for startups such as Beijing University Venture Capital Fund and Entrepreneurial DNA Fund of Tsinghua are being actively developed, and it enables to attract active investment in accordance with rapidly changing technology trends.

     


    In China, under the management of the University Education Committee, a number of startup support organizations are associated and cooperate whereas in Korea, many similar organizations such as startup support team and startup education center are individually operated depending on the government's start-up support programs and budgets.

     


    China conducts market-oriented entrepreneurship by inviting entrepreneurs as adjunct professors and businessmen and investors stay on campus full-time and provide one-on-one mentoring and consultation on the students ideas and products. In contrast, in Korea, each school has only 8.8 full-time staffs and it is difficult to provide proper consultation. Therefore, they rather focus on basic supports such as providing space for start-ups.

     


    Lee Bong-gul, a research fellow at the Institute for International Trade of the Korea International Trade Association, said, "The universities are the core of forming a startup ecosystem that produce creative and innovative human resources as well as startups of cutting-edge technologies." The researcher stressed, It is urgent for Korea to create a startup friendly culture that enables private-run independent investment in startups and market-oriented entrepreneurial education and assessment and to respect entrepreneurs.


     

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