Start-ups in southern Guangdong province have a relatively low rate of success in China, according to the country’s State-run media.
Over 134,000 companies were newly registered in the province in the first four month of 2015, up 38 per cent from the year before, the Yangcheng Evening News reported, citing the Guangdong Provincial Employment Service Bureau.
But their success rate is proving sub-par due to difficulties encountered raising funds and finding qualified staff, Tang Shengzhang, the bureau’s deputy head, was quoted as saying.
Tang did not specify the overall failure rate but said that only one per cent of companies started by college students in Guangdong is successful.
The same rate among college kids in Shanghai is 4 per cent, the bureau said.
In global terms, only one in 10 start-ups are believed to still be operating within three years, reports say. The rest either fold or are sold to larger companies at a discount.
Tang said the provincial government will invest at least 500 million yuan (US$80.5 million) each year to subsidise new start-ups, but did not give a deadline.