Shanghai residents are increasingly active in starting up businesses.
The government's efforts to promote entrepreneurship and innovation with favorable policies have proved a success, according to a survey report released yesterday by the city's employment promotion center.
Nearly 12 out of every 100 people aged between 16 and 64 started up their own business in 2016, a slightly higher figure than 2015.
The result was supported by statistics provided by the commerce authority showing that there were more than 1.9 million registered private companies in the city by the end of last year, compared to 1.7 million in 2015.
The report also showed that each new entrepreneur had created 8.8 jobs on average, up from 8.2 in 2015.
Young people are most likely to be involved in startups.
An estimated 12.4 percent of citizens aged between 16 and 35 were startup runners in 2016, compared to 11.8 percent in 2015. Or put another way, one in eight young people is involved in running a startup.
Local colleges are promoting entrepreneurial and innovative education and many students now think of startups as a career choice, said the report.
Furthermore society is more tolerant of failures in starting businesses, while the government has introduced a series of policies, providing financing support, rent subsides and related training, according to the report.
Among the new entrepreneurs, 60.7 percent said they had started up their own companies to take advantage of commercial opportunities in the past year, up from 59.8 percent in 2015.
Lack of funding, business sites and experience, along with fierce competition and high costs of human resources, remained the biggest challenges cited for starting businesses in 2016.
The most needed supports were still considered to be tax incentives and subsidies, financial help, simplified governmental administration procedures, entrepreneurial training and help with finding a suitable venue.