In China, as well as many developing countries around the world, the new craze seems to be tech start-ups. The article explains that in China it is becoming more and more often for students to follow the path of Mark Zuckerberg and dropping out of college to start their own business. In fact some universities are encouraging their students to start their own businesses even allowing students to take a leave to do so.
This belief is caused by multiple different facets of life in China, one being that “many young Chinese said they consider Robin Li Yanhong, founder and chief of Baidu, known as the “Google of China”, and Jack Ma Yun, founder and chairman of e-commerce giant Alibaba, their idols.” The other is that China has developed a new “quick-money” culture.
This trend is scaring some economists and businessmen, including American billionaire Mark Cuban (who many of you might know from ABC’s Shark Tank). These people fear that this boom in tech start-ups is eerily similar to the “dotcom bubble and crisis” of the early 2000’s. Cuban even goes as far to say that he thinks that “[this bubble] could be far worse than the tech bubble of 2000.”
In China, however, there have been many higher-ups in favor of the funding and supporting local start-ups. One of these is Lee Kai-fu, one of China’s top angel investors and the former Google China chief. Lee hopes to create 10 million new jobs and envisions that “start-ups will pick up the slack where traditional state-owned enterprises have begun to reduce business expansion amid a nationwide slowdown in economic growth and Beijing’s curbs on pollution related businesses such as large steel mills and coal mines.”