Twenty-seven business plans entered for the Fourth "Challenge Cup" National Entrepreneurship Competition for College Students have already been scooped up by venture capitalists interested in developing their ideas.
The competition kicked off yesterday in Xiamen University, in east China's Fujian Province, and will last three days.
It is sponsored by the Ministry of Education, the Central Committee of the Communist Youth League, China Association of Science and Technology, the National Union of Students and co-organized by Xiamen University and Xiamen’s municipal government.
Winning teams from Hong Kong, Macao and Taiwan joined the competition for the first time as guest contestants and observers.
Entrants are scored in two parts: written business plans and closed-door competitive interviews. Forty entrepreneurs, venture capitalists and other professionals are involved in evaluating the 100 plans from 77 colleges across China. Plans are judged on their market potential, feasibility and the team's ability to successfully execute their business ideas.
The plans represent a wide-ranging spectrum from electronic, mechanical and medical products to the service industry. Entrants focus on energy, environmental and rural issues, according to the organizers.
The competition is designed to bring out the innovative and entrepreneurial spirit of students by encouraging them to turn technological ideas into businesses realities. In turn, potential job seekers become job creators, which is "Of significance for rapidly expanding higher education," as Professor Wu Shinong, vice-president of Xiamen University, put it.
Since the first competition was held in 1999 at Tsinghua University, yielding promising firms like Fanso, Shimeile and Sotrip, China has witnessed an upsurge in business exploration on campuses.
Fanso attracted investment of 6 million yuan (US$722,000) from Shanghai Pudong Technology Innovation Investment Company while Shimeile attracted 52.5 million yuan (US$6.3 million) from Shanghai No.1 Department Store Corporation.
During the third competition hosted by Zhejiang University in 2002, 10 out of the 60 final teams ended with contractual investment of 93.3 million yuan (US$11 million) in total.
However, "The amount of invested capital alone is not to state the value of this competition," said Professor Wu Shinong, also vice-director of the judging panel.
According to reports in the United States, only 10 out of 1,000 business plans receive venture capital and just 5 to 8 percent succeed.
Wu says the competition serves more as a drive to improve the quality and relevance of the students' education and to help advance technology.
(China Daily November 8, 2004)
