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For students, rationality essential for startups

By He Shuang | chinadaily.com.cn | Updated: 2017-03-13 16:08

For students, rationality essential for startups

Liu Huihao, a CPPCC National Committee member and a professor from Zhongnan University of Economics and Law. [Photo by He Shuang/chinadaily.com.cn]

Young entrepreneurs should be more rational about business startups and should prepare themselves in every possible way before venturing into them, urged Liu Huihao, a CPPCC National Committee member and a professor from Zhongnan University of Economics and Law in an interview with chinadaily.com on March 9.

Since the Chinese government is encouraging mass entrepreneurship and innovation, many college students have made innovative undertakings their goal.

Innovation, undoubtedly, is good for economic and social progress. However, many people are not very well informed about the various problems that may occur when they start and develop new companies, and some even start businesses without a clear target and careful thinking, which may lead to failure, according to Liu.

She explained that a college student's starting up his or her own business requires business acumen and understanding of the commercial world.

Liu suggested that young entrepreneurs should be more rational about business startups. "Not everyone has the ability to launch a startup and not all entrepreneurs succeed. It needs basic competency and willingness. People should be rational in their judgments of themselves and their analysis of the market."

She said that students should be sure that they have the necessary capacity and capability to run a business before jumping into the fray. It's also important that they should do something different that makes them stand out among the innovating mass, said Liu.

As regards ways to get financial support, Liu, an expert in finance and economy, suggested that young entrepreneurs on the one hand study government policies in funding, subsidies, and affordable land use, and on the other hand try to attract investment from financial institutions and angel investors.

"Joining the burgeoning trend blindly is risky. As a student, study comes first. They should only do it under the premise that they can keep up with their studies and have sufficient time and energy," Liu added.

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