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Students seek path to biz fortunes
(China Daily)
Updated: 2004-11-08 08:41

Twenty-seven business plans entered in during the Fourth "Challenge Cup" National Entrepreneurship Competition for College Students have already been scooped up by venture capitalists who may want to develop the ideas.

The competition kicked off yesterday in Xiamen University in East China's Fujian Province, which will last three days.

It is sponsored by the Ministry of Education, the Central Committee of Communist Youth League, China Association of Science and Technology, the National Union of Students and co-organized by Xiamen University and Xiamen municipal government.

Winning teams from Hong Kong, Macao and Taiwan joined the competition for the first time as guest contestants and observers.

Entrants are scored in two parts: Plans on paper and closed-door competitive interviews.

Forty entrepreneurs, venture capitalists and other professionals are involved in evaluating the 100 plans from 77 colleges across China.

Plans are compared on their market potential, feasibility and the team's ability to successfully execute their business ideas.

The plans represent a wide-ranging spectrum from electronic, mechanical and medical products to the service industry.

Entrants focus on energy sources, environment and rural issues in China, according to the organizers.

The competition is designed to bring out the innovative and entrepreneurial spirit of college students.

Students are encouraged to turn technology and ideas into businesses.

In turn, potential job seekers become job creators, which is "of significance for rapidly expanding higher education," as Professor Wu Shinong, vice-president of Xiamen University put it.

Since the first national entrepreneurship competition was launched in 1999 at Tsinghua University, which yielded promising firms like Fanso, Shimeile and Sotrip, China has witnessed an upsurge in business exploration around Chinese campuses.

Fanso attracted an investment of 6 million yuan (US$722,000) from Shanghai Pudong Technology Innovation Investment Company while Shimeile received venture capital of 52.5 million yuan (US$6.3 million) from Shanghai NO.1 Department Store Corporation.

During the third competition hosted by Zhejiang University in 2002, 10 out of the 60 final teams ended with contractual investment of 93.3 million yuan (US$11 million) in total.

However, "the amount of invested capital alone is not to state the value of this competition," said Professor Wu Shinong, also vice-director of the judging panel.

According to reports in the United States, only 10 out of 1,000 business plans receive venture capital and they see a still lower success rate at just 5 per cent to 8 per cent in entering business.

Wu points out that the competition serves more as a drive to quality education and technology advancement.

One member from Taiwan said the competition provides incentives to pursue study and to involve faculty and fellow students.

Multidisciplinary combinations of competitive teams greatly enhance the communication of students.



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