An increasing number of Chinese college graduates are choosing to start their own businesses rather than seek employment in existing companies, China Daily reported Tuesday, citing a survey.
Aside from being their own boss, self-employed graduates enjoy a higher average monthly salary than those who are working for other people, the report said.
Of the college students who graduated in 2013, 2.3 percent started their own business, up from 2 percent in 2012, 1.6 percent in 2011 and 1.5 percent in 2010, according to the 2014 Chinese College Graduates’ Employment Annual Report, released by MyCOS, a Beijing-based education consulting and research institute.
The survey polled 268,000 graduates from 28 provinces and regions.
Chen Yu, vice-president of the China Association for Employment Promotion, attributed the rising number of self-employed graduates to government efforts to support graduates in starting their own businesses, including providing micro loans and cuts in taxes and fees.
Education is the top sector chosen by graduates starting their own business, with 15 percent of them opting to begin their careers in this area. Other favorite sectors include retail, wholesale, architecture, media, information and telecommunications.
“The education sector, especially test-oriented training, is expanding quickly in China and therefore college graduates, as a group of highly educated people, can easily find a place in it,” said Feng Lijuan, chief consultant at recruitment website 51job.com.
As for the retail and wholesale industries, Feng said online trading platforms such as taobao.com provide a simple and convenient way for college graduates to establish their own virtual stores.
Only 8 percent of self-employed college graduates started their own businesses because of difficulty in landing jobs, while 48 percent did so because they wanted to become entrepreneurs, the survey showed.
Other reasons include having good entrepreneurial ideas, being invited by peers to start a business together and believing in income prospects of the business, the report said.
The report said college students who started their own businesses after graduating in 2010 now earn an average of 8,424 yuan (US$1,349) a month, 41 percent higher than the average for college students who graduated that year, according to the newspaper.
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