Would Crowdfunding Really Help Startups in China?

The Chinese Startup Marketplace

Small businesses or startups play a very important role in China. According to the data from iResearch in 2021, small and micro enterprises account for 96.5% of China's market players, contributing 60% of GDP, 70% of the national technological innovation achievements and 80% of labor employment (Xia Shuo official account, 2021). In addition, the tax contribution accounts for half of the national tax. In the long run, with most non-religious people and an increasing number of female founders in the market, Chinese small businesses or startups are sustainable and they will remain important. This is shown in a qualitative comparative analysis of the causal patterns reveals that high GDP in combination with either (1) high shares of female founders of startups or (2) high shares of non-religious people in the population induce entrepreneurial ecosystems with relatively high levels of sustainability enterprises. (Tiba, van Rijnsoever, & Hekkert, 2021).