Módulo I: Percepción e identificación del Barrio en el que reside

In the part of literature review, we stated external factors of entrepreneurship and also showed that common concrete external factors. According to results of interview, interviewees provided following concrete external factors and reflect that these external

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factors did not bring the expected results and even hinder their entrepreneurial activities: procedural requirements for registration and licensing, venture capital, diversity of financing channels, low-cost loans, credit policy, counseling and support service, incubator facilities, tax incentives and exemptions, transport and communication facilities, macroeconomic stability, extent of economic growth, entrepreneurial education system, entrepreneurial training. And a new phenomenon was provided: unqualified staff in implementation process and difficulty of doing things without relationship.

We are going to present the commonly concrete external factors separately and understand what opinions hold by college student entrepreneurs are:

Procedural requirements for registration and licensing: in China, the strict registration system and cumbersome approval requirements prevent entrepreneurs from getting a license in a short time. Some entrepreneurs point out that it can be shortened by corruption or relationship.

Diversity of financing channels: Financing shows the sources and flow of funds. Every business needs the basic start-up capital. Therefore, for the entrepreneurs, the ability of quickly and efficiently obtain venture capital is critical factor of business success. However, in China the financing channels are limited for entrepreneurs and they rely mainly on banks and other financial institutions. In fact, venture financing, SME loans are secured venture financing channels. Most of interviewed entrepreneurs said that

“government should provide more opportunities and information for entrepreneurs to find partners and broaden the financing channels, in order to further development of business.” Some college student entrepreneurs‟ advantage is the technology and patents,

but the lack of funds, experience and social resources, there are lots of good technology cannot be commercialized due to capital and scale constraints.

Credit policy: it is difficult to get loans from banks. All of interviewed college student entrepreneurs get investment support from their family. On the one hand, enterprises set up by college students are generally small, basically it is difficult to get venture capital; on the other, banks and other financial institutions provide the loans to entrepreneurs reluctantly. Therefore, some of them try to get lending from bank but not successful. “Credit policies are only a pretense policy to encourage college students to start a

business.” (Tableware disinfector). “I tried to obtain bank loans, but a series of conditions prevent me from getting loans, such as I need an innovative products and patents” (Network platform owner). “The loan amount is limited and cannot meet my needs to start a business” (Wedding studio owner).

Low-interest loan: it is difficult for entrepreneurs to benefit from this policy because entrepreneurs must pay off the loan within two years if they got low-interest loan, for the entrepreneurs who stay in the early stage of business, this regulation undoubtedly bring an enormous psychological pressure on them. In addition, the bank provide loans

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with high threshold, entrepreneurs should mortgage or need a guarantor, so it is very difficult for college students if the entrepreneurs want to obtain loan from banks.

Tax incentives and exemptions: although the tax rates are quite low in China, it will be better if taxes were lower because these tax expenditures severely affected or even hindered the development of entrepreneurial activity, especially in the early stage of development they did not make profit. However, Educational service founder deem that

“tax incentives are not effective to encourage college students to start a business, after all, China's tax revenue has been low, as citizens, pay taxes is our duty and responsibility”. Of course mostly interviewed entrepreneurs prefer the low tax.

Tableware disinfector said that “it is difficult to get loans from bank due to many risk

existed for government and banks, however, the policy of tax incentives maybe is easier to implement than lending policy, it is still very difficult for us to enjoy any tax incentives”.

Macroeconomic stability: most of interviewees think macroeconomic stability in China increased their confidence of entrepreneurial activities.

Extent of economic growth: The steady economic growth in China brings many business opportunities, it has affected positively through the fact of demand increased among population and their power of purchasing is higher than before.

Social factors: most of respondents believed that public has a positive opinion regarding college student entrepreneurs and their activities.

Entrepreneurial education and training - Entrepreneurship education is an expedient way but it is not running through the entire process of education and training in China. In addition, the type of entrepreneurship education is single; all of entrepreneurial courses are elective course in universities, and it mainly introduces the basic knowledge of entrepreneurship to college students instead of practical skills. “The entrepreneurship

courses are very boring, and the teachers just simply describe the basic entrepreneurial knowledge and skills so that this course does not have any help for students who want to start a business. If the school can provide some entrepreneurship practice or activities, I think the help maybe larger than that way.” (Educational service founder).

Most of respondents have heard some support programs such as the counseling and support service, incubator facilities, they are never taking part in any program and using any of the support approach.

In addition to above mentioned barriers, we found out that the most important obstacle considered by respondents is corruption, i.e. the difficulty to get these preferential policies if they lack relations with relative departments and staff. “Now we doing

anything necessary to build relationships with relative departments, such as children are not going to a good school without relations with educational sector, promotions rely on relationship; finding a job depends on relationships and so on. It is difficult do

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something if you do not have relationship.” (Tableware disinfector).