Should graduates launch startups?

Students test their robots in an Internet Plus creativity and entrepreneurship contest in March in Xi'an.[Photo/VCG]

Summer is the season for entrepreneurship, as millions of recent graduates hit the job market.

A recent report on entrepreneurship among Chinese college students released by China's Renmin University reveals the trend.

Nearly 90 percent of the 430,000 students from 1,767 universities in 31 provinces surveyed say they've considered starting a business. More than 70 percent say self-actualization is their main motivation.

The spirit of innovation has reached unprecedented heights among young people today, as the central government encourages them to undertake entrepreneurship and local governments adopt policies encouraging e-business.

But some analysts point out the risks fresh graduates face and urge caution. Recent graduates lack some skills and they should first cultivate through work experience, they say.

Should young people start their own innovative businesses or join other startups as their first jobs after graduation?

YES

This is the best time for young people to become entrepreneurs.

1. Today's college students already have some work or even entrepreneurial experience before graduation. Many have completed internships or have already started their own businesses. So, it's only natural that they might launch startups after college.

2. It's becoming more difficult for fresh graduates to get full-time jobs as economic growth slows. Students might as well immediately start their own companies rather than take low-paying jobs that offer little in terms of useful experience or skills.

3.Government support makes this a good time to launch a startup after graduation. Seizing this rare opportunity may help fresh graduates succeed faster.

NO

Fresh graduates are not prime candidates for entrepreneurship.

1. Entrepreneurs who can benefit most from government support are innovators with years of experience and connections. Fresh graduates can't compete with such veterans.

2. Recent graduates may quickly become unemployed, as many ill-conceived startups fail. They will have wasted time and energy. Instead, they should build a good foundation for future entrepreneurship by getting solid work experience in a traditional business.

3. Fresh graduates have little savings and few financing options, which are key to starting a business. They will do much better to gain personal capital through full-time jobs, which may put them in a strong position in their own businesses in the future.