Some places in the world are extremely well-suited to incubating and cultivating startups and startup culture. The most important names are that of Silicon Valley, New York, London.
However, off late, there’s another place that has come up for the incubation and cultivation of startups and has proved very beneficial.
That place is none other than China and here are four reasons why China has turned into the latest hub for startups.
A huge market
With almost one-and-a-half billion people, China has the world’s largest population by far. This means that even small obscure markets, or special niche products that would be too tiny in Europe or even the US have a HUGE market opportunity in China.
One can explore the heights of your creativity in any area, and bring the talented team to build that great idea that one has been working on, confident that the market will be there for the entrepreneur.
Superfast growth and lots of opportunities
China’s economy is already the second-biggest in the world, only behind the USA, and it’s still growing really fast. It grew to the tune of 7% last year which is almost like adding an economy the size of Switzerland to the country every year.
When opportunities are being created that fast, and the pie is getting bigger, there’s so much more to go around for everyone. One can create and own a brand new $1 billion market from scratch in China in just a few years. That is, however, not possible in Europe.
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Presence of a lot of talent
The common idea regarding China is that it’s the place where they copy everything and steal technologies from Japan, Europe, and the US. But that’s not true anymore.
Over the last decade, the Chinese government has poured tens of billions of dollars into their tech infrastructure, and now it is bearing results. Peking University, Tsinghua University, and Jiaotong University turn out some of the best tech talents anywhere on earth.
The good news is that they are ready to work for startups outside China as well.
Willingness to try everything without any fear of failure
Even though China is an ancient country with a long history and culture, its new development is very young. Every idea is given equal importance there with none of them getting discarded without any reason.
No idea is crazy if they’ve never seen it before! And this can make all the difference to a startup that’s trying something totally new.
Chinese VCs and Chinese tech talent are willing to take a risk on something that Europeans, or even sometimes the Americans might dismiss as “too out there.” But not in China.
All these reasons, together have helped turn China into a haven for startups across the world. A recent report by Startup Genome has pointed out that as US startups are lagging behind, Chinese startups are gaining momentum.
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