Measures such as streamlining administration, supporting small and micro businesses, and establishing funds for new industries are gradually changing the ecosystem to facilitate mass innovation and entrepreneurship.
Shen Guoxing, owner of a resort on the island of Chongming, Shanghai, is planning to change his company’s place of registration from the development zone to his place of residence.
“In the past, I could not directly pay social security for my employees due to policy restrictions,” Shen said. Now, however, a new registration policy enables him to do so.
Zong Ji, CEO of an IT company in Shanghai, said it only takes about 5 minutes to change the shareholder register of a company and this could previously take about two weeks.
In Zhejiang province, over 50,000 businesses were registered in the first 20 days after the government launched the new registration policy, a rise of 25 percent compared to the same period last year.
Additionally, a total of 29 provincial governments shortened the time required to get a business license with an organization code and taxation registration — from the previous 15 to 20 working days to only 4 working days.
A total of 211 vocational qualifications will no longer involve official certifications and over 800 verifications and approvals have been canceled since 2013.
The income of Teambition, a cloud service company, increased nearly 30 times in the past year thanks to the help of Gobi Partners, who offered them 4.5 million yuan ($724,500) in venture capital funding.
Gobi Partners is only one of the companies that accepted government funds.
According to Xinhua, over 10 billion yuan of government funds were involved in venture capitals to support entrepreneurship by the end of 2014.
New measures were taken in various parts of China to support mass innovation and entrepreneurship.
In Fujian province, the government set up a 100 million yuan angel investment fund and provided newly established firms with equipment and services such as data analysis, legal advice and business training programs.
According to data from the Ministry of Science and Technology, there are over 1600 national incubators in China, and they are helping over 80-thousand companies.
Song Li, director of the economic research institute, National Development and Reform Commission, said the government should be bold enough to reform itself and provide more public products and services to facilitate China’s economic transformation.