Evidences from several sources including the Global Entrepreneurship Monitor (GEM) suggest that entrepreneurial intent is high amongst young Chinese graduates, but support mechanisms are either lacking or misunderstood by those entrepreneurs aiming to start their own business. The aim of this work was to suggest recommendations to narrow this gap. To this end, a comparison was undertaken to examine what government measures exist and are effective in a well-developed, highly ranked entrepreneurial economy such as in the UK as compared to that of China and what could be recommended to boost entrepreneurial culture and output, boosting economic activity. A number of areas have been considered for comparison including financial support such as loans and grants as well as ‘red tape’ and incentives which may directly or indirectly affect the ease of starting a business (such as tax breaks for example that might make it easier for private investors to invest). It is found that there are a considerable number of valuable programs available to those in China wanting to start a business including funding, tax breaks, infrastructure and other helpful policies, but often the rules and regulations are a complex and time-consuming barrier and this is the main area to be addressed.

A number of researchers have attested that entrepreneurial capital is regarded as an important metric of economic growth (Wennekers and Thurik, 1999; Audretsch and Keilbach, 2004; Wong et al., 2005; Audretsch et al., 2006; and Acs and Szerb, 2007). Further, some empirical studies have shown a positive relationship between entrepreneurship and economic development. Wennekers et al. (2005) concluded that there is a U-shaped relation between entrepreneurship and average disposable income, implying different policies may be required for counties in different stages of economic development. On the basis of the data collected from its 23 member countries, the Global Entrepreneurship Monitor (GEM) has also established a positive relationship between entrepreneurial activity and a high employment rate, which is a demonstrator of economic development status. Acs and Szerb (2007) also believed that entrepreneurship and economic development have a positive relevance, that is, the curve is S-shaped. Nabi et al. (2010) further suggested that graduate entrepreneurs are regarded as a significant measure of a nation’s competitiveness and the engine for economic growth and development. Kirby and Mullen (1990) put Schumpeter’s (1954) theory into historical background and pointed out that unpredictable and uncertain societal changes mean that empowering people to manage change is crucial in improving living standards and transforming routines. Enterprising graduates are such type of initiatives, who demonstrate characteristics like adaptability, innovativeness and flexibility. Many believe that it is the government’s responsibility to create more enterprising graduates who can progress the economic development.

Entrepreneurship Development Journal, Chinese Governmental Support, Graduate Entrepreneurs UK, Global Entrepreneurship Monitor (GEM), OECD countries.