The dream of starting your own business is a common one. And many an expat has observed that China is a land of opportunity. Yet, becoming an entrepreneur is Nanjing is a complicated process that all starts with the all-important work permit.
On 10 January, the Jianye District Talent Service Building was packed with foreigners, mostly international students. They had all signed up for the “International Talent Career Development Forum: 2020 Entrepreneurship in Nanjing”. Its aim was to provide guidance and advice as to relevant legal regulations for expats and foreign students as potential entrepreneurs.
The forum was especially aimed at new graduates who wish to work or start a business in Nanjing. Fully 80 percent of those in attendance fell into that category.
Organised by the Nanjing Science and Technology Bureau and 100Tech, and with participants such as the Nanjing Human Resource and Social Security Bureau, the forum was invaluable to would-be entrepreneurs.
Back to Basics; the Work Visa or Entrepreneur Visa
The matter of visas is never off the radar for foreigners in China. And visas as they relate to working in China is an issue as complex as they come. No wonder that the forum dwelt considerably on the subject.
Attendees were particularly interested in the keynote speech by Founder of 100tech, Maggie Ma, in which she clarified the difference between work visa and entrepreneur visa. Key takeaways were those relating to the requirements for such visas and the location of the potential business.
In Jiangbei New Area, international students can apply for a work permit for business purposes, as long as their GPA is at least 80. Elsewhere, the requirements are a GPA of at least 80 and a masters degree.
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With GPA of at least 80 but no masters degree, a work permit can be obtained if the business is to be located in a provincial-level development zone. Likewise if the business is in an emerging industry, as encouraged by the Nanjing authorities.
Martin, one of the attendees, is studying a masters degree in Nanjing Forestry University. Speaking with The Nanjinger, he said he came to the forum just to learn more about the details of getting a work visa or entrepreneur visa, so as to consider his future after graduation. “The biggest challenge to entrepreneurship in China is to get the visa. This requires a lot of preparation before; deal with many files to different offices”, he said.
After the Visa; Advice from Expat Entrepreneurs Who Made it
With the visa finally sorted, it will soon be time for the nuts and bolts of your business. From marketing to suppliers, China is a competitive place with millions of people chasing limited resources.
Nanjing Expat, Betty Juru, started her business, Body by Juru, just last year. The quality high-tech sportswear firm has the mantra “Feel super comfortable while working towards the best healthier version of you”.
Juru told The Nanjinger, “The idea had been storming in my head in 2018 and slowly starting working on plans and August 2019 is when I launched my website and social media pages”.
She explained that the main difficulty she had when starting out was trusting the factory she was in contact with. “Always try to get the best deal by shopping around and negotiating and be firm with what you want and don’t feel pressured to take the offer they first make. Ask for about 3 established business to share their experience working with the factory.”
Looking back, Juru wishes she had done pop up shops to promote the brand before launching it. “[I’d suggest] sending out free samples to social influencers, friends and families before your launch date.”
Likely the best-known expat business in Nanjing is Skyways. The German-style bakery has now been operating for almost 25 years and has seen both expansion and contraction. Having opened a total of six stores across the city in the past, there are now three branches of Skyways in operation. Foreigners and Chinese alike now get their daily fix of coffee, bread and chocolate in Xianlin, Hexi and downtown on Shanghai Lu.
Skyways Co-Founder, Patrick Heckelmann, gave The Nanjinger his advice for the would-be expat entrepreneur in a nutshell. “Be original and not a copy. Keep the quality. Fixed costs are to be considered.”
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Very few businesses in China are solely run by foreigners, and there is always the possibility that their Chinese partner may one day cut them out of the business.
Speaking with The Nanjinger, Eric Thompson, who previously ran his own marketing company in Nanjing, said, “Make sure you find a Chinese partner you can trust. That’s easier said than done. It’s happened many times that they just run off with the money.
“You need something they don’t have; a skill that takes ages to learn, for example. Or at least something that is very hard to replicate.”
The Nanjing Expat Entrepreneur as Innovator
Back in the Career Development Forum, several international innovation projects had been invited to speak to attendees.
- Lari Anton Lampen, Finnish/British, introduced his product Blink, a rehabilitation instrument for dry eye, emphasising non-invasive help for the syndrome.
- Tayfun, a PhD student at NUAA, made a brief introduction to his research of a solid battery, which is more safe, efficient and convenient. It could contribute a lot to the green energy industry.
- Neud T. Desta from Ethiopia introduced his project, “Africa to China”, a trading platform similar to Alibaba. The USP is that it is tailored for small and medium-sized buyers in member countries of the Belt & Road Initiative.
- Berdibekov from Uzbekistan, spoke about “Elise”, an A.I. program used in autonomous driving.
- Halil from Turkey and Ravil from Russia introduced their program, “Mira”, an international marketing app which helps overcome cross-cultural difficulties and language barriers.
- Roman from Uzbekistan and Bereket from Ethiopia introduced their “Pronto BlockChain” project which aims to build a more efficient and reliable supply-chain system, especially for agricultural products in the China market.
Not only is it glaringly apparent that entrepreneurialism among expats in Nanjing is alive and well, it is also evident that getting that work or entrepreneur visa is just the start on a very long road.
