Business Opportunities for Entrepreneurs in China
If you want to start a business in China, here is a question you need to ask yourself. What kind of business you want to do there? The economy of China is considered as the second largest and the fastest growing in the world. It is easy for you to get access to cheap and reliable technology, low-cost and productive workforce. As we know, China has the largest population in the world, which makes China become the second highest purchasing power parity globally. What’s more, the political environment of China is stable for start-ups. Nowadays, Chinese government continues to encourage people to start business in the country. That makes China become one of the best countries to start your own business.
Today, there is an increasing number of start-ups in China. It is easy for you to start a small business in China market. However, for entrepreneurs, to reduce risk and become successful in long term, it is very important to choose a good business to start. Now, let us explore the five most profitable business opportunities in China for entrepreneurs.
There is a high demand of English language learning from people in China. English is the top one global language in the world. In China, English becomes the most important second language. Although Chinese students start to learn English in their primary schools, most students cannot obtain good English education and still need to improve English listening and speaking skills when they graduate from universities. Nowadays, many people in China who want to improve their English skills for their careers or business development are willing to spend more than $4,000 US dollars each year on private English training organizations. Thus, if you are fluent in English, you may want to start an English teaching business, which only requires small capital, to service firm managers and businessmen.
Import and Export Trading
China is the largest importer and exporter in the world. You can run a profitable business in importing and exporting easily. There are manufacturers everywhere producing low-end goods and exporting them to many other countries. These manufacturers are also supported by Chinese government. On the other hand, more and more Chinese people prefer to buy imported goods, especially food and products for babies. In China, you can easily get access to low-cost products from manufacturers, services from importing and exporting agents, and international trading platform, such as Alibaba. Importing and exporting business is a good choice for you to start businesses in China.
Clean and Green Tech
Environment pollution is a big problem in China. It is a long-term process for Chinese government to handle. Currently, Chinese government made serious commitments to environment conservation and pollution reduction, including reducing air pollution, water consumption, energy consumption and so on. In China, with government’s support, your business can become profitable quickly. If you are an entrepreneur running a business in clean and green tech sector, you will get increasing resource and support from the government and benefit a lot from the favorable policies.
Online Retailer or Wholesaler
China is one of the best countries to start online retail and wholesale business. Firstly, almost everyone can get access to internet using their cell phones. Also, most of them prefer to purchase goods online because of the convenience of shipping and low price of products. You can spend small up-front investment to start a business in online trading platforms, such as Taobao, Jingdong, Suning and Tianmao. These platforms are easy to work with and offer many support to you. Moreover, the logistics and transportation industry are mature, making delivery service cover the whole country, including rural areas. During the day of “Double 11” festival in 2016, sales of clothing, shoes, and hats account for 41.2 percent of total revenue. For example, Chinese people spent $7.1 billion U.S. dollars on the fashion products in Tianmao platform in that day. If you are ready to run an online business in China, you may want to sell fashion products.
China is the second largest tourism economy after the United State and its domestic tourism volume continues to increase. Also, an increasing number of Chinese people are willing to spend more money on travelling. To maintain a GDP growth rate of 6.5 percent in the next five years, Chinese government will motivate domestic consumption by supporting tourism industry. Therefore, tourism services, hospitality, and travel social media will become huge opportunities for entrepreneurs in China.
In conclusion, there are lots of opportunities for entrepreneurs to start their own businesses in China. I hope you can get some business ideas from the opportunities listed above. I am sure it is quite easy to find more profitable business opportunities in China and make your entrepreneurial dreams come true.
MBA Candidate 2017