Professor Sun Jinyun from Fudan University School of Management shared his analysis of the entrepreneurship environment in China as well as the profile of the best Chinese companies in the field of sci-tech innovation.
Professor Sun pointed out that China has seen many young entrepreneurs in the past ten years. However, most of the new businesses are customer based; many of them suffer from lack of genuine innovation; and a large number of startups don’t last long.
As shown in the research conducted by Professor Sun and his team, the R&D intensity of companies listed on the SSE STAR Market is much higher than those on the Growth Enterprise Market (or GEM) companies. The percentage of top-level managers with PhD degrees is also higher in companies listed on the SSE STAR Market. Meanwhile, the company performance is often significantly better in ROA, ROE and other indicators when there are female leaders in the team.
Professor Sun also advised the Chinese entrepreneurs not to rush the journey to success. As the research reveals, it takes an average of 12.77 years for a startup to grow into a GEM-listed company; the number for the SSE STAR Market is 14.43 years. The chairman of the board is averagely 51.39 years old when the company gets listed on the GEM, or 52.99 years old when getting the company listed on the SSE STAR Market.
