Amid the fervor for entrepreneurism sweeping across China, a new survey shows that Beijing is considered to have the country's best environment for startups.
The survey, conducted by the National Survey Research Center at Renmin University of China, Qianhai Institute for Capital Management and Shanghai Huihang Business Consulting Co., Ltd. interviewed 2,100 entrepreneurs across 21 cities and ranked each place based on its policy, market and cultural environment as well as the activities of entrepreneurs there.
The report by Renmin University and its partners found that more than 30% of all respondents view Beijing as having the best startup environment. Cities in the Yangtze Delta region such as Ningbo, Suzhou and Shanghai rank in the second tier, while cities in China's northeast rank lower.
Twenty-one percent of startups said they weren't profitable yet, and the ones that have made money said their median annual profit was about 150 million yuan. Only 8.5% of the startups surveyed said they had received venture capital, with most having been funded instead by family, friends and colleagues.
The top 3 problems cited by the entrepreneurs were China's tax preference system, financing channels and the efficiency of government departments.
One notable exception from the higher tiers of the list was the southwestern metropolis of Chengdu. The Sichuan provincial capital has worked to fashion itself as an ideal city for startups — yet it ranks 12th in the overall ranking and 19th in terms of market environment.