What is wrong with Student-run Business in China
By admin on 2014-12-26

College students starting up their own businesses has garnered much media attention in recent years, spotlighting successful cases of students running companies while still undergraduates.

Although most applaud their ambition and ability, there is little attention raised to failed student ventures.

Recently experts are calling attention to the increasingly careless and na?ve attitude toward business among young entrepreneurs, citing inadequacies in business education and popular misconceptions of business as a cure-all to solve unemployment among graduates as causes.

In order to help foster young entrepreneurs' competitive edge, market stamina and overall business plan viability, You Jianxin, assistant dean of Chinese Academy of Science & Technology management at Tongji University in Shanghai, identifies four of the most common misconceptions in both society and academia about student-run enterprises that need to be addressed.

Real world vs classroom

Many universities in China in recent years have set up courses or lectures teaching students how to start a business, but as far as You is concerned, such programs have limited effect.

"Beginning an undertaking is after all an act of practicality. Experience outside school is much more significant than listening to lectures or writing papers in class. Besides, some teachers are only armchair strategists without real experience of starting a business. What they have taught about how to start a business most often is misleading," You said.

Overnight entrepreneur

Everybody wants to be successful.

But young people shouldn't have delusions when beginning an undertaking, dreaming of becoming rich overnight or being motivated by fame and wealth alone.

"Success entails many elements, ranging from individual ability to timing. Eager for quick success and instant gain only makes the experience of starting a business an unhappy and most likely unsuccessful one," You said.

No job? Start a company

Many students begin their own business after graduation because simply because they cannot find jobs.

But You argues this is not reason enough to venture out in business.

The real world is not like taking an exam at school, and there is much more risk involved.

"Before a student decides to set up his own company after graduation, consider your business plan, skillset, stamina and courage to face the difficulties ahead," You said.

"Also, be have a very sober outlook about the possibility of failure," he said.

"Do not choose to start a business merely because no satisfactory jobs have come your way."

Universities' invisible hand

Many universities are supportive of student business ideas, not only through coursework but also financial support.

But without the support of government and the local business community, most of these fledgling enterprises would never get off the ground.
"In a word, to help and encourage student enterprise is the responsibility of the society as a whole," You said.