Qianhaiincubating ideas

accelerating entrepreneurship

YouthVolume 6 Number 1March 2014a quarterly journal from the hongkong federation of youth groups

H O N G K O N G

YOUTH HONG KONG published quarterly

by The Hong Kong Federation of Youth Groups

EDITORIAL BOARD

Rosanna Wong Elaine Morgan (Editor) Ada Chau (Assistant Editor) Angela Ngai Lakshmi Jacot William Chung Henry Poon

CIRCULATION (unaudited)

11,000-12,000 in Hong Kong, throughout the region and overseas

VIEWS EXPRESSED are the authors and interviewees' may come from official sources, and do not necessarily reflect the views of the editorial board or publisher

REPRODUCTION OF CONTENTS without written permission from the publisher is prohibited

INTERVIEWS

Elaine Morgan Ada Chau OTHER CONTRIBUTORS Chun Yu-yiu Pradyumn Dayal Bonnie Chiu Lakshmi and Shakti Jacot Jimin Kang Education Post HKFYG unit staff TRANSLATION Henry Poon Ada Chau

PHOTOGRAPHS

Cover image by Fortune Live Media. Other photographs by Elaine Morgan, Berton Chang/SCMP, acknowledged as captioned, or in public domain.

ARTWORK

Sam Suen, DG3

DESIGN, LAYOUT & PRINTING

DG3 Asia Ltd

ISSN 2071-3193

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THE HONG KONG FEDERATION OF YOUTH GROUPS was founded in 1960 and is one of the citys largest non-profit youth organizations. Its programmes and activities at over 60 locations are attended by 5 million participants every year.

CORE SERVICES Counselling, Creativity Education & Youth Exchange, e-Services, Education Services, Leadership Training, Leisure, Cultural & Sports Services, Parent-child Mediation, Research & Publications, Services for Youth at Risk, Volunteer Services, Youth Employment, Youth SPOTs, www.hkfyg.org.hk, www.m21.hk

MEDIA PARTNER Education Post

4OVERVIEW Another ChoiceAnother Opportunity

20-29YOUTH WATCHAsian incubators and acceleratorsChina, India Indonesia, KoreaPhilippines, Singapore, Taiwan , Thailand, Vietnam

30-43 PERSPECTIVEAda Wong: The Good Lab

44-49FEATURESWomenWasteMusic

ContentsOVERVIEW4 Another choice . another opportunityINTERVIEWS8 Qianhai entrepreneurial hub Mr Zhang Bei, Director General, Authority of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation ZoneYOUTH SPEAK14 Grasping opportunities in Qianhai Young entrepreneurs and a business student respond15 Youth Business Hong Kong Boosting entrepreneurs16 Shirley Mak: InnSight17 Gary Hui & Xavier Tsang: BeCandle18 Ronnie Cheng: Lab Made Barry Chen: Shenzhen Haochuang Investments19 Invigorating entrepreneurship Theodore Ma: CoCoon21 Hong Kong incubators22 Education Post Young designer with a business mindYOUTH WATCH24 Asian incubators and accelerators PERSPECTIVE27 Ada Wong: The Good Lab with Chun Yu-yiu and Pradyumn Dayal Innovative solutionsPROFILE 30 Bonnie Chiu Empowering women through photographyTALKING POINT34 Lakshmi and Shakti Jacot The long battle: mother vs. daughterCITY SPACE36 Charging for garbageARTS & CULTURE Jimin Kang38 Why play music?40 Gabriel Lee HKFYG Hong Kong International a cappella festivalHKFYG43 Summers coming: book now at Outdoor Training Camp Sai Kung44 KK Cheng Kindergarten now open46 Easyvolunteer.hk: a new volunteering app 48 M21 School Net HSBC Financial Dialogue52 English Public Speaking Contest winners tips54 Jade Art: new jewellery shop at PMQ

Youth Ho n g K o n gMarch 2014Volume 6Number 1

6-13INTERVIEWS

Director General Zhang BeiAuthority of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen

14-23YOUTH SPEAKBoosting entrepreneursYouth Business Hong Kong

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The cover image is of a Chinese yoyo ( ch lng)

More than a decade ago, the United Nations (UN) put youth employment on its agenda, with the creation of the Youth Employment Network. The organization proposed four strategic measures, including the promotion and support of youth entrepreneurship. The UN urged countries and cities around the world to

adopt similar measures to help alleviate the problem of unemployment among young people.

In fact, it is estimated that between 2016 and 2030 nearly 425 million young

people will be joining the work force, requiring at least half a billion jobs globally.

To help meet this challenge, according to the UN Secretary General, the world

needs to encourage, educate and empower young entrepreneurs.

The Federation has heeded this clarion call and since 2002, began its initiatives to promote

entrepreneurship as Another Choice Another Opportunity for young peoples employability.

The theme of this issue of Youth Hong Kong is youth entrepreneurship in general,

with a special focus on an exciting venture across the border in Qianhai, in the

Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen.

Within this venue we will establish the Qianhai Youth Entrepreneur Hub with

an academy for entrepreneurial training and education, an incubation centre, and

an exhibition hall, all with the purpose of fostering innovative start-ups.

Encouraging, promoting and supporting entrepreneurship, especially for young people,

is something that we believe cannot be delayed or postponed. And we very much hope

that if you too have similar stories or experiences, you will share them with us.

Dr Rosanna Wong, DBE, JP

Executive Director, HKFYG

March 2014

Youth Hong Kong

Editorial

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March 2014 |

Qianhai: new opportunities for young people

Another choice Another opportunity

Entrepreneurship has become the global dream for many young people, but only a few are bold enough to turn their dream into reality. With its commitment to the promotion of entrepreneurial spirit, the Federation is now expanding the scope of support it oers them.

As early as 2002, The Hong Kong Federation of Youth Groups (HKFYG) began its initiatives to promote entrepreneurship as Another Choice . Another Opportunity, for young peoples employment. The LiveWIRE project, supported by Shell Hong Kong, offered training and other programmes to help youth realize their business dreams. Then, in 2005, the Federation enlisted the support of Youth Business International to help set up the dynamic Youth Business Hong Kong (YBHK) which was accredited the following year. See page 15 for more details.

Our commitment to training programmes and workshops on entrepreneurship, to research and publications, as well as our advocacy, motivates, supports, and publicizes young entrepreneurs' efforts. The Federation also encourages them to get involved in competitions, such as the HKFYG's HSBC Youth Business Award 1. These can help them make their business dreams into practical reality. Almost all of these initiatives have been conducted with partners including the government and business sector.

1

5

6 7

8

Model of Qianhai Youth Entrepreneur Hub (E Hub)

1. Convention and Exhibition Centre

2. Academy

3. Residence

4. Multi-Purpose Innovation Centre

5. Incubator Building A

6. Incubator Building B

7. Incubator Building C

8. U-Square

Youth Hong Kong

Overview| March 2014

4 p Image courtesy of Barrie Ho Architecture Interiors Ltd

Another choice Another opportunity

How entrepreneurial are we?

Efforts have been made to measure how entrepreneurial a society is according to the number of its small businesses, its self-employed people and the number of start-ups, but this produces a highly distorted picture. New research** ranks entrepreneurial vigour according to the number of self-made billionaires who made money by founding innovative companies. It shows that entrepreneur density correlates with economic dynamism, including the number of patents per head or the flow of venture capital.

Hong Kong has a long history of entrepreneurship and according to this measure, Hong Kong comes top, Singapore is fifth and Taiwan is eighth.

Sources*http://www.economist.com/blogs/schumpeter/2014/02/our-schumpeter-columnist** http://www.ifn.se/wfiles/wp/wp959.p

What is entrepreneurshipA common view is that entrepreneurs are self-employed or run small businesses. This type of entrepreneurship is about flexible employment in the context of poor opportunities. The second view is that entrepreneurs are innovators. They have new ideas and embody them in high-growth companies. The two types of entrepreneurship have been called replicative and innovative.2 Both have an important role in a successful economy.

Figure 1 Number of billionaire entrepreneurs per million inhabitants, 19962010: the top ten

Hong KongIsrael

United StatesSwitzerland

Singapore Norway Ireland Taiwan

Canada Australia

0.5 1 1.5 2 2.5 3

2

3

4

The E Hub will also try to match young entrepreneurs with angel investors and other forms of financing. Office space with state-of-the-art facilities will be offered rent-free for the first year and at half-price for the second year.

Innovative young entrepreneurs are desirable in any economy because they stimulate growth, contribute to productivity, create jobs, increase competitiveness and spur innovation. The drive that pushes them to achieve their dreams is often inborn, but guidance and support go a long way to help smooth the path to success. That is why the fundamental role of the E Hub will be to incubate and accelerate entrepreneurship. These functions are explained in more detail in the next few pages.

Now HKFYGs efforts are being extended to the Pearl River Delta, to creating the new Qianhai Youth Entrepreneur Hub (E Hub), within the Shenzhen special economic zone. Official information on developments there can be on pages 8-13.

The E Hub will be developed over the next few years with the mission to foster about 200 innovative start-up companies, all run by young people from Hong Kong, the mainland and overseas. It will incorporate an academy for youth entrepreneurship, where courses, workshops and forums will take place, stimulating the free flow of ideas that generates innovation.

Entrepreneurs and innovationThis vibrant hub for entrepreneurial activity will have a floor area of about 26,000 square metres. Start-up support in the form of mentorship, business consultation and networking will be available.

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Hatching start-ups and speeding growthStarting up any new business is usually fraught with uncertainty and heavy financial burdens. This is particularly true for innovators, due to the complexity of their products and services. Business incubators help them progress from an initial concept, make prototypes and turn them into products. By offering common work space with other start-ups, then suitable mentoring and finance, they provide a safe haven and a support system. Value-added services come in the form of in-house consulting and access to a network for marketing, business planning, and both legal and accounting services.3 HKFYGs Youth Business Hong Kong is one example of an incubator and the concept will be integral to the E Hub in Qianhai.

The terms incubator and accelerator have been used interchangeably and some of their functions overlap, depending on the sophistication, variety and complexity of services offered. Accelerators take high-potential entrepreneurs, already in business, and help them grow more quickly. The programmes are shorter and usually more intense than incubators. Early-stage funding may also be offered, sometimes in return for equity. However, business acceleration is, ultimately, the goal of all true business incubation and thereby also one of HKFYGs central goals in Qianhai.

Both business incubators and accelerators provide supportive education and training. They are not the same as business schools, although they are sometimes called start-up schools. Some private companies launch them to tap into the start-up community or as an exercise in corporate social responsibility. Governments and NGOs may also subsidize them to foster an entrepreneurial ecosystem.

What incubators do foster entrepreneurial climate offer nurture and instruction during early start-up stages provide co-working space for start-ups give access to hands-on business support provide access to finance and expertise help build industry clusters create jobs and wealth

Based onhttp://www.ukbi.co.uk/resources/business-incubation.aspxhttp://www.entrepreneur.com/encyclopedia/business-incubator http://en.wikipedia.org/wiki/Business_incubator

What accelerators do invite applicants in a competitive process that is open to all provide investment funding, usually in exchange for equity focus on small teams, not individual founders give time-limited support comprising programmed

events and intensive mentoring

engage cohorts or "classes" of startups rather than individual companies

Based oninformation from NESTA, (National Endowment for Science, Technology and the Arts), an independent charity that works to increase innovation in UK. http://www.theguardian.com/small-business-network/2013/oct/24/business-accelerators-financial-startups

Creating a communityDeveloping entrepreneurial capacity in defined localities, by focusing on policies, structures and programmes that foster entrepreneurship, can result in the creation of an entrepreneurial ecosystem. Within such a system, the conditions exist where value-creating entrepreneurial ventures can thrive.

Scaling up production and services is a key factor and, according to Daniel Isenberg, founder of the Babson Entrepreneurship Ecosystem Project, this step is much harder to take than starting up.4 Silicon Valley is the worlds strongest ecosystem. Few others existed till about ten years ago. In Asia, Singapore is said to have great current potential as an entrepreneurship ecosystem, ranking seventeenth worldwide, according to Telefonicas Startup Ecosytem Report.5

Isenberg says, Entrepreneurship is always surprising: in fact, if its predictable, its probably not entrepreneurshipThe entrepreneur is almost always swimming against the current.6 However, the good news, according to the Global Entrepreneurship Monitor 2013 Global Report,7 is that entrepreneurs report high levels of well-being despite the challenges.

Taking the leadHealthy entrepreneurial communities need to be tailored around a unique environment. Actively encouraging investment in new businesses, they are reinforced but not created by government, academic or commercial organizations. Entrepreneurial ecosystems operate best with reduced bureaucratic obstacles, with government policy that supports the needs of entrepreneurs, offers them incentives and tolerates failed ventures.8

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p Qianhai Youth Entrepreneur Hub Conference and Exhibition Centre

Brad Feld, venture capitalist and co-founder of TechStars, has useful advice. Writing of cities that want to build vibrant entrepreneurial communities or ecosystems, he pinpoints four main factors:

they are fundamentally driven by entrepreneurs they take a long-term view they encourage inclusive engagement they offer a continuum of activities and events

Fundamentally, he says that entrepreneurship cannot be imposed from the top.9 He emphasizes that the leaders have to be entrepreneurs... If youre in a city where theres no clear start-up community, the goal is ... to start finding the other entrepreneurial leaders who are committed to being in your city over the next 20 years.10

The GEM 2012 Global Report estimates that nearly half of the worlds entrepreneurs are aged 25-44 and in all geographic regions surveyed, 25-34 year olds showed the highest rates of entrepreneurial activity.11 When a critical mass of these young entrepreneurs has access to appropriate support, an entrepreneurial ecosystem can grow and flourish. First, there needs to be a magnet that attracts them to a central hub, whether in the form of incentives, or a vibrant community of like-minded young people. Then there has to be long-term commitment from stakeholders.

From Hong Kong to QianhaiThe worlds most dynamic societies are also its most entrepreneurial. When HKFYG set up Youth Business Hong Kong to promote entrepreneurial spirit, it was in the vanguard. Now, at the exciting moment of setting up a new cooperative venture on the mainland, its past experience shows the way and throws light on how young people can be encouraged to set out in business on their own.

Management guru Peter Drucker points out that people who need certainty are unlikely to make good entrepreneurs... but everyone who can face up to decision-making can learn to be an entrepreneur.12 The Federation wishes to broaden the scope

of support it gives to assist in such a learning process, and in the smooth transition to entrepreneurial self-employment for youth.

To continue in Druckers words, the entrepreneur always searches for change, responds to it, and exploits it as an opportunity. In the new venture with Qianhai, the Federation recognizes and responds to the demands of a fast-changing economic environment. Its purpose, by forging expanded cooperation with the mainland, is to provide exciting opportunities for purposeful, innovative youth.

Sources

1. http://ybhk2.hkfyg.org.hk/ybaward2013/en/home

2. Naud, W (ed). A Commentary on Entrepreneurship and Economic Development. United Nations University http://wider.unu.edu/publications/newsletter/articles-2011/en_GB/04-2011/

3. Chandra, A, He, W, and Fealey, T. "Business Incubators in China: A Financial Services Perspective," International Journal of Entrepreneurship, Volume 13, Special Issue, 67-86.

4. http://www.forbes.com/sites/danisenberg/2011/02/03/dear-president-obama-suggestions-for-how-to-make-start-up-america-really-succeed/

5. https://s3.amazonaws.com/startupcompass-public/StartupEcosystemReportPart1v1.2.pdf

6. http://www.economist.com/blogs/schumpeter/2014/01/invitation-daniel-isenberg

7. Amoros, JE & Bosma, N. Global Entrepreneurship Monitor (GEM) 2013 Global Report. January 2014 http://www.babson.edu/Academics/centers/blank-center/global-research/gem/Documents/GEM%202013%20Global%20Report.pdf

8. http://www.technologyreview.com/news/516521/its-up-to-you-entrepreneurs/

9. https://knowledge.wharton.upenn.edu/article/techstars-brad-feld-a-startup-community-needs-a-20-year-time-horizon/

10. http://www.feld.com/wp/archives/2013/07/startup-communities-are-up-to-the-entrepreneurs.html

11. http://www.gemconsortium.org/docs/2645/gem-2012-global-report

12. Drucker, Peter F. Innovation and entrepreneurship. New York: Harper & Row. 1985

In 2011, HKFYG published A Study on Youth Entrepreneurship, on young peoples attitudes towards entrepreneurship, the factors they considered before starting a business, the major obstacles and challenges, and the kinds of support they needed. Findings showed that the majority approved of the idea but only a minority had actually started a business. Their main concerns were lack of capital, lack of space, lack of business skills and knowledge of running a business.

More details at http://yrc.hkfyg.org.hk/news.aspx?id=2661d8c1-4046-40df-a7c1-4ad221eb9953&corpname=yrc&i=2527&locale=en-US]

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Ten Priorities 1. Perfecting the basic economic system.2. Deepening reform of the

economic system.3. Helping to transform

government functions.4. Implementing land management reform. 5. Building a socialist country

under the rule of law.3

6. Fostering innovative systems in cultural development and institutions.

7. Accelerating reform of the social system.8. Deepening reform of environmental

and resource management.9. Strengthening clean governance.10. Building and furthering reform

of Chinas Communist Party system and organization.

Three unique functions for Qianhai To be a platform and an exemplary

window for national opening-up strategy To innovate in modern service industries To serve Guangdong-Hong Kong

cooperation and Shenzhen-Hong Kong cooperation

Qianhai is at the major development axis of the Pearl River Delta region in the Shenzhen Special Economic Zone, adjacent to Hong Kong and Macau. It is easily accessed by air, land and sea. It is intended as a pilot area for Shenzhen-Hong Kong cooperation in modern service industries, to lead and foster the development and upgrading of national modern service industries.

Qianhai: a hub for international youth entrepreneurship

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YHK How will Qianhai achieve this?

YHK Can you tell us about Qianhais role as an innovative zone for

modern services?

Mr Zhang explained that as a special zone within a special zone1, Qianhai, will forward the unique functions of Shenzhen by implementing an early pilot scheme for experiments in innovative mechanisms for reform and services. There will be a Qianhai Entrepreneur Hub that can help actualize the Chinese dream.2

Mr Zhang

First, It will serve a unique function and have a special role by being open to reform,

innovation and development. It will be a platform and an exemplary window

services in a cluster zone, we will provide a replicable and scalable model and bring wisdom and experience to reform service industries elsewhere in the country.

Third, Qianhai will serve a unique function and have a special role for Guangdong-Hong Kong cooperation and Shenzhen-Hong Kong cooperation. President Xi Jinping, General Secretary of the Chinese Communist Party, has pointed out that Qianhai is the new platform for such cooperation. Qianhais role, as given by the central government, is to be the pioneer zone of Shenzhen-Hong Kong cooperation. This follows the Third Plenum, where it was pointed out clearly that the government would further expand and open up cooperation with Hong Kong. Qianhai, as an important strategic platform for multi-level, wide-spectrum cooperation that involves systems, industry, and talent, will launch its plan very soon.

Mr Zhang Bei, Director General of the Authority of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen, explained its importance for national development and as an attractive hub for international youth entrepreneurship.

for national opening-up strategy. It will also fully implement the ten priorities of The Third Plenary Session [Third Plenum] of the 18th Central Committee of the Communist Party of China (CPC), with the main focus on making the process of reform replicable and scalable in other cities.

Second, Qianhai will serve a unique function and perform a special role by innovating in the area of modern service industries.4 It holds a place of national strategic importance because of its focus on modern service industry development. By integrating modern

Factors in Hong Kong for Qianhai to learn from

Rule of law independent and effective judicial system, successful anti-corruption measures and good public order

International hub an important international financial and trading centre, a shipping centre and an air transport hub

Marketization free trade and economy, simple business regulations, a simple taxation system, free and open market

Positioning factors for Qianhais implementation of national strategy Demonstration of opening up in financial

services Innovative experimental zone for

cross-border RMB business Model for building a socialist rule of law Shenzhen-Hong Kong cooperation zone

for talent Cooperation zone for Shenzhen and

Hong Kong New modern service industry zone

YHK What needs does Qianhai have which can be fullled by learning

from Hong Kong in these ways?

International hub an important international financial and trading centre, a shipping centre and an air transport hub

Marketization free trade and economy, simple business regulations, a simple taxation system, free and open market

p Mr Zhang Bei, Director General of the Authority of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen

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YHK In what ways do you think Hong Kongs experience is most help-

ful for enhancing Qianhais future development and Shen-zhen-Hong Kong cooperation for mutual benet?

Mr Zhang emphasized three ways in which Qianhai, as an important strategic platform, is significant for deepening cooperation between Shenzhen and Hong Kong and building on the strengths of both places for mutual benefit, while also comprehensively deepening economic reform.

Mr Zhang

First, Qianhai can learn from Hong Kongs experience of an independent and effective

judicial system, clean civil service and good public order. Second, Hong Kong has accumulated much experience in internationalization, as an international, cosmopolitan city, an important international financial and trading centre, a shipping centre and an air transport hub. All its market operations and regulations are up to international standards, bringing together key elements from around the world. Third, there is Hong Kongs experience of marketization. It has a well-developed, free economy, simple business regulations, a simple taxation system, and a free and open market.

Mr Zhang

The State Council confirmed two important strategic needs for Qianhai. First, it needs to

implement national strategy. For this, Hong Kongs experience of leveraging the comparative advantages of both places will be of mutual benefit. Second, because modern service industries are institution-intensive, Qianhai needs law enforcement to safeguard a free, market-driven economy, corruption-free, efficient public services and international operations and regulations. In order to achieve this, Qianhai needs to learn from Hong Kongs experience.

Mr Zhang

First, the size of its economy. Qianhai is located in the highly developed Pearl River Delta.

The GDP of the Pearl River Delta reached 4.8 trillion RMB last year, while the GDP of Hong Kong was HK$2 trillion. The GDP of Beijing was 1.7 trillion RMB and that of Shanghai was 2 trillion RMB. With its economy supported by the strength of Pearl River Delta and Hong Kong, Qianhais cooperation with Hong Kong could lead to the creation of a base for modern service industries worldwide.

Second, its geographic location is an advantage. Qianhai is located on a major axis between Guangzhou, Shenzhen and Hong Kong. It is close to Shenzhen Airport and Hong Kong Airport and there are 12 urban railway lines which enable people to reach Shenzhen Airport from Qianhai in 10

minutes. In the future, it will take 13 minutes to reach Hong Kong Airport, and half an hour trip to reach Hong Kongs Central District. We will also learn from the check-in facilities at the International Finance Centre in Central. In addition, given the 15 square kilometres of land in Qianhai, an underground space can be developed into a total potential multi-storey area of a further 7,800,000 square metres.

Third, it has cost advantages. These include land costs, initial financing and labour costs. Take land prices, for example. The cost of land is much less than in Hong Kong and cheaper than either Beijing or Shanghai. Take start-up financing as another example. Qianhai is to be a pioneer for cross-border RMB loans and the interest on loans is 2-3% lower than the average rate in Mainland China. Furthermore, we have over 15 billion RMB earmarked already, and enterprises registered in Qianhai will be supported by the central government in the issue of yuan bonds in Hong Kong.

Qianhais four key advantages Size of its economy Location on the axis between

Guangzhou, Shenzhen and Hong Kong Cost advantages including land costs,

initial financing and labour costs Significant visitors to Qianhai and

related events of national significance

Fourth, significant events took place in Qianhai in 2012 and 2013. On 7 December 2012, President Xi Jinping made Qianhai the first stop on the first official tour of his presidency. He pointed out that Qianhai would be the new starting point for reform and opening up of China. He said that Qianhai can leverage the strengths of Hong Kong and serve Mainland Chinas aim of further opening up to the world. As led by the Inter-ministries Joint Conference, with 27 departments, a committee for the development of Qianhai was then formed. In October 2013 when Shenzhens Mayor Xu Qin was in Beijing to receive an award, Premier Li Keqiang also made special reference to developments in Qianhai.

Qianhai

Hong Kong

Shenzhen

YHK It is said that Qianhai has the potential to become an innovative

nancial centre like that in Zrich and to have latent qualities equivalent to Canary Wharf. Is this realistic?

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Qianhai has four key advantages which make this realistic, Mr Zhang explained.

YHK What are the main challenges for Qianhai in the immediate future?

YHK Can you tell us about the opportunities that Qianhai might open up

for young people in Hong Kong and on the Mainland?

Mr Zhang

First, the window of opportunity is getting narrower. Competition, led by

the Shanghai pilot free trade zone, is intensifying. Qianhai needs to use the coming two to three years to build a clear competitive advantage.

Second, the pressure to innovate and reform has increased. The Third Plenum of the CPC deployed a master plan to deepen comprehensive reforms, mentioning the concept of A Three-fold Process and One Platform 5 . This concept was put

forward by the 18th Plenary Session of the 5th Shenzhen Committee of the CPC , with Qianhai serving as the platform for national strategy.

Third, we need greater cooperation between Shenzhen and Hong Kong. We certainly have a lot now, but we need to improve in terms of Hong Kong capital investment, cooperation mechanisms and the attraction of talent.

Mr Zhang

Qianhai will bring golden opportunities to young people from both Mainland China and

Hong Kong. The structure of economies changes with the shift to service industries. In around 30 OECD6 countries, the value added to GDP by service industries is more than 70%. The amount of labour involved has reached 69% of the total working population.

In developing countries, the value added to GDP by service industries accounts for more than 50% of total GDP. According to authoritative statistics, the proportion of GDP in this sector in Mainland China grew from 43.2% in 2010 to 44.6% in 2012. The proportion of the working population in these service industries varied from 34.6% in 2010 to 35.7% in 2011 and the proportion in modern service industries is even lower.

According to the national 12th Five Year Plan, the amount of value added by service industries in GDP terms will reach 47%, by 2015. As was pointed out in the 12th Five Year Plan for Shenzhen's Modern Services Industries Development, the value of service industries will have grown to 900 billion RMB by then. This will be around 60% of the total GDP. Foreign investment in service industries will account for about 70% of Shenzhens the total in use. Also, about 55% of the total working population will be employed in service industries.

Three key areas of concern were stressed by Mr Zhang.

Three main challenges for Qianhai Competition led by the Shanghai

pilot free trade zone Increased demand for

innovation and reform Greater cooperation between

Shenzhen and Hong Kong

Qianhai

Hong Kong

Shenzhen

p Qianhai Youth Entrepreneur Hub Academy

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Supported by good development trends in service industries, a solid foundation in manufacturing industries in the Pearl River Delta, as well as government support, according to Mr Zhang, Qianhai can certainly provide good opportunities for young people. It is the only new national strategic area focusing on modern service industry development. It emphasizes Shenzhen-Hong Kong cooperation and will certainly emerge as a key part of Chinas service industry sector, providing young people in Mainland China and in Hong Kong with good opportunities.

YHK Can you tell us about the collaboration between HKFYG and

Qianhai for youth entrepreneurship?

YHK What kinds of advantageous tax regimes or other

nancial incentives do you envisage for young entrepreneurs in Qianhai?

Mr Zhang

First, there will be a tailored-made platform to attract talented, innovative young

entrepreneurs from Shenzhen, Hong Kong and around the world. We will establish the Young Talent Ambassadors to attract innovative entrepreneurs, especially those aged under 35.

Second, there is to be a service platform for start-ups seeking investment financing. We will establish a charitable trust fund to receive donations and a development fund integrated with marketized operations, plus investment from venture capitalists and angel investors. We will also seek financial support from the provincial government.

Third, there will be a platform to further promote innovative entrepreneurship in a practical way. We will invite mentors for entrepreneurs aged under 35 who are still in the early stages of setting up in business. We will help them build their own special characteristics, and professionalize their services. We will also help mature businesses to become market leaders.

Fourth, there will be a platform that ensures the social mission of this initiative is carried out through marketization. We will solicit resources and establish an institutional structure with the three parties.

Mr Zhang

Although land prices in Qianhai have generally been very high, we will be able to

provide concessionary rates to attract entrepreneurs. There will also be favourable tax arrangements and efforts to create a tax environment similar to that of Hong Kong. Individual income tax will be only 15% for eligible young entrepreneurs. We will also launch a concessionary corporate income tax rate of 15%. The intention is to actively promote taxation arrangements that are more favourable than Hong Kongs in order to attract the citys youth entrepreneurs.

Another policy will be to provide investment financing to help young entrepreneurs. We will tailor-make a financing system for the HKFYG's Qianhai Youth Entrepreneur Hub by setting up a development fund. There will also be a charitable support platform for it and plus other support services, including mentorship and integrated professional services.

Four important platforms of the Qianhai Authority, HKFYG and Shenzhen Youth Federation E Hub

To attract talent To give investment financing to start-ups To promote innovative entrepreneurship in practical way To carry out its social mission

YHK In what ways will Qianhai attract young people?

Mr Zhang

First, it will be a modern service industry development cluster zone. According to the

overall Development Plan for Hong Kong and Shenzhen Cooperation on Modern Service Industries in the Qianhai Area, with cooperation from Shenzhen and Hong Kong, its GDP will reach 150 billion RMB, while the estimated working population will reach about 650,000 (with an upper limit of about 750,000). By 2020 it will be competitive internationally and be a modern services regional centre on the waterfront.

Second, Qianhai will be an important platform for establishing a two-way international-mainland market. As an international platform, Qianhai will be a jumping-off point, bringing together Hong Kong business and business from around the world to explore a bigger Chinese market. It can also serve as a platform for Mainland China business to expand worldwide.

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The Qianhai Authority (QA), The Hong Kong Federation of Youth Groups (HKFYG) and the Shenzhen Youth Federation (SYF) have entered a partnership to create the Qianhai Youth Entrepreneur Hub (E Hub), Mr Zhang explained.

YHK In what ways can the Youth Entrepreneur Hub serve the interests

of development in Qianhai?

YHK Is there any reason to fear a brain-drain of young Hong Kong talent

to Qianhai?

Mr Zhang

While Qianhai will attract high-end young talent worldwide, it will also serve as

a base to help them grow. We will help to foster high quality talent for Hong Kong and provide space for its development as well as attracting talent from all around the world.

Qianhai will be able to help Hong Kong and its people to enjoy stability and prosperity, as laid down by the One Country, Two Systems policy. It will do this via the Shenzhen and Hong Kong cooperation zone, giving access to Mainland China for Hong Kong talent enterprise to allow further expansion. By providing a space where young talent can shine, it will encourage talented young people to contribute further to Hong Kong. As an open platform for Shenzhen and Hong Kong cooperation, it will also attract talent internationally, thus also serving Hong Kongs interests.

Mr Zhang

The project is attracting a lot of attention in both Shenzhen and Hong Kong. It will explore

a way to operate a charitable social mission based on an exploratory model which supports innovative entrepreneurship and business incubation. All these will contribute to marketization and internationalization in Qianhai via a new Hong Kong and Shenzhen cooperation platform.

This cooperation is multi-dimensional and multi-faceted. The idea was initiated by the QA, the HKFYG, and the China Communist Youth League Shenzhen Committee which formed the SYF. Their participation facilitates a tripartite collaboration.

As confirmed by the State Council and Organization Department (of the CPC Central Committee), Qianhai is to be a special zone for Shenzhen and Hong Kong talent. The new E Hub will provide a platform to explore the concept of gathering talent from both places. It will mean that Qianhai can explore the industrialization of the incubator and accelerator processes as a new kind of service producer industry.

p Dr Rosanna Wong, Executive Director, HKFYG and Mr Zhang Bei,

Director General, Authority of the Qianhai Shenzhen - Hong Kong Modern Service Industry Cooperation Zone

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Notes and Sources

1. Qianhai is also spoken of as a special economic zone (SEZ) within the SEZ of Shenzhen.

2. The Chinese dream was proposed by President Xi Jinping, targeting the goal of the "great renewal of the Chinese nation". It is about realizing a prosperous and strong country, rejuvenation of the nation and the well-being of the people. http://www.xinhuanet.com/english/special/chinesedream/

3. The term "rule of law" is used in this interview for the Mainland China exclusively . It does not carry the meaning of the Rule of Law as it is understood in jurisdictions where there is separation of powers.

4. The four modern service industries referred to are finance, logistics, IT, technology services and other professional services. http://www.sz.gov.cn/cn/xxgk/xwfyr/wqhg/20101220/201012/t20101220_1618969.htm

5. The 3 processes referred to are legalization, internationalization and marketization, understood to be the Wikipedia definition: Marketization is a restructuring process that enables state enterprises to operate as market-oriented firms by changing the legal environment in which they operate. The platform is Qianhai.

6. OECD: Oragnisation For Economic Cooperation and Development.

Mr Zhang stressed that the E Hub would be a very important element in Qianhais development as a whole and would foster Shenzhen-Hong Kong cooperation.

Grasping opportunities in Qianhai

Four young people took part in the sharing session and interview given by Mr Zhang Bei. A second year Chinese University business student writes about his impressions and then three young entrepreneurs give their views. All of them are quite positive.

The speed of both hardware' and software' development in Qianhai far exceeded my expectations. In fact, we would consider moving our business there because Qianhai is strongly supported by the Central People's Government and the Shenzhen government.

There is to be new, tailored government policy and law reform in Qianhai as well as tax benefits. Furthermore, it has a strategic location in the Pearl River Delta, close to Hong Kong.

Johnny Luk

I was impressed by the effort and resources put into the development by the Chinese government. From setting legislative policies to creating synergy among enterprises, I believe Qianhai will be a successful economical pioneer project in China.

As an entrepreneur, I look forward to making Qianhai a stepping stone for my business expansion in China. Apart from the tax benefits and streamlined company registration process that is proposed, we are particularly interested in the Federations incubation programme which will provide tremendous opportunities for young entrepreneurs.

Anthony Lam

Leaving the comfort zone On the early train to Shenzhen one morning, I googled for information about Qianhai. Little did I know that I was going to witness progress in one of the most influential projects in southern China. Qianhai is definitely a pioneering effort for the Chinese government, with unprecedented collaboration between Hong Kong and Shenzhen. After the sharing session with Mr Zhang Bei, I concluded that a very aggressive yet sustainable plan was being implemented.

As a business student, my focus was on how it would affect the Hong Kong economy. Indeed, with the establishment of the Qianhai special economic region, there will be another competitor in Hong Kongs vicinity. However, I believe competition forces improvement. Hong Kong has done very well in the past, and with the development of Qianhai, it will be able to maximize its potential, using its strengths and home-grown talent to the full. There will be many new opportunities for Hong Kong people. It is high time we started thinking about how to seize our chances.

Cedric Leung

Three YBHK entrepreneurs also visited Qianhai and went to the interview with Mr Zhang Bei. Kelvin Woo and Johnny Luk are in the IT sector, and Anthony Lam runs a business in e-marketing. They commented on what they heard and the plans for an HKFYG Qianhai Youth Entrepreneur Hub.

I think it will be a perfect gateway to mainland China for information technology businesses. The pace and determination with which developments are taking place are unbelievable. We are now evaluating whether to setup a branch in Qianhai. Transport links with Hong Kong, taxation policy and legal policies are the three key factors for us.

We would have fewer concerns if we qualified for the new HKFYG entrepreneurship support centre. The facilities and support would be extremely important for us, and for many other young people in the Hong Kong business world.

Kelvin Woo

p From left to right, Anthony, Kelvin, Johnny and Cedric (with a guide)

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Boosting entrepreneursIn 2005, with Youth Business International support, HKFYG set up Youth Business Hong Kong (YBHK) to promote entrepreneurial spirit. It was Hong Kongs rst business start-up incubator and the Federations commitment to entrepreneurship as an alternative to other work is now continuing in partnership with the local business community as a one-stop service for young start-ups.

HKFYG believes that entrepreneurship will enhance Hong Kong's economy and provide more job opportunities. By working in partnership with local businesses, its YBHK programme provides financial access for business start-ups and support through business mentoring. The YBHK scheme is open to any young person aged 18-35 who is a Hong Kong permanent resident, a viable business plan or an existing business that has been running for less than 3 years with a demonstrated commitment to run a business, but has no access to seed money.

Authorized Institution

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over 1,450 applicants to date

over 135 start-up companies funded

maximum amount of seed funding HK100,000 each

support for businesses from recycling to candle-making

over HK$8 million in seed funds allocated

over 60% of supported start-ups still in business after 3 years

YBHK Facts & Figures

YBHK works with many organizations to promote entrepreneurship. The TVB programme, I Am Boss, is one example, where advice is given by professional consultants to the team of judges. More information at http://mytv.tvb.com/variety/iamboss/172207.

HKFYG is also a partner in Entrepreneur Day, organized by the Hong Kong Trade & Development Council on 2-3 May 2014. A competition called Entrepreneur Arena, co-organized by HKFYG will be held. More information at http://ybhk.hkfyg.org.hk/files/ybhk/eday/index.html

New initiatives from YBHK

interest-free seed funding

sourcing support for business hardware and resources

business mentorships and professional consultancies

networking and information on industry, trade, finance and the law related to business operations

entrepreneurship courses, training programmes, brainstorming

dialogue series with successful entrepreneurs

four annual HSBC Youth Business Awards supported by HSBC Commercial Banking

Key services from YBHK

Key features of YBHK business plans

original idea

good quality service or product

achievable rate of return and break-even ability

potential exit routes

knowledge of existing market and potential growth

awareness of existing competition

contingency plan

More information on YBHK The next few pages have examples of some successful start-ups and the results of seed funding, mentoring and support from YBHK.

Tel 3113 7999 email ybhk@hkfyg.org.hk web http://ybhk.hkfyg.org.hk/?locale=en-US

Youth Business Hong Kong

Interviews by Ada Chau

Support when they needed it

Shirley and Charles found YBHK on the internet and value their YBHK mentor highly, especially for help in planning and day-to-day operations. Shirleys parents also had experience of running a small business and they offered moral and financial support, but they say that the seed funding and expertise from YBHK was essential.

More informationAddress 3/F, 9 Lock Road, Tsim Sha Tsui, Kowloon, HKRoom charges HK$400-HK$850 per nightTel 2369 1151Email Innsight.info@gmail.comWeb www.innsight.hkFacebook https://www.facebook.com/pages/InnSight/396227493724584

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Ive always wanted to try working for myself, said Shirley, not because I didnt like working for a boss, but rather because I wanted to try something new. After all, if the worst comes to the worst I can always find another job!

First of a cluster Shirley and Charles realized that there are very few cosy little hotels in Hong Kong like the ones they had stayed at in Taiwan, Japan and Korea. They offer style and comfort without being too expensive. So, in 2011, they started to plan InnSight.

We were among the first of a very small number of young people who now run small guesthouse hotels like this. We found a floor of a Tsim Sha Tsui building to start with. Its a prime tourist area and we think it really can give visitors the sense of being at home.

Other young people followed in their footsteps, but Shirley and Charles were the first to make a name for themselves. Our clients love to come back again and they tell their friends about us too. I would say we have the edge when it comes to good service. In fact, sometimes our guests even leave a thank you note when they leave. We also make sure we keep in touch with them on Facebook.

By making good profits, Shirley and Charles have already expanded. We had eight rooms originally but now we rent another floor in the same building. That has doubled our capacity. Very soon, we will open a new small hotel in Chatham Road.

Nevertheless, Shirley is cautious. We are still learning and although we have confidence in our business success so far, finding financial stability is more and more important than further growth.

A new kind of place to stay

Shirley Mak graduated from Hong Kong University of Science and Technology in Business Management, then trained as a merchandiser for two years. Co-founder of InnSight, Charles Ho, did Mechanical Engineering, also at HKUST.

Now in her mid-twenties, Shirley Mak has been her own boss for a year. Charles Ho, her partner and anc, keen to start up his own business, found out about YBHK which helped them make their dreams a reality. Now they run a new kind of guesthouse. It has personal service and a homely feel. Its called InnSight.

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BeCandle of Hong Kong the melting art

I already had my own design service company before I met Gary, said Xavier. I worked in Italy for other companies before we got together. It was very good experience. It also helped us build our customer base and gain the confidence to go freelance.

With financial support from Xaviers first business and income from freelance jobs, they started to plan their dream for real establishing their own brand and making their own products.

Burnishing the candle brandXavier has always been fond of making candles and he loves contemporary design. Italian craftsmanship inspired me and when we founded BeCandle we kept trying new things and displaying products at international exhibitions. Happy to show customers his wares, Xavier also has developed a performance to match his candles . He first presented it in Berlin last year. (See link to Way of the Candle below).

However, progress has not been straightforward. Even though we try to plan ahead, we have had to react quickly to problems, says Xavier. Originally we targeted the European market, but there were too many competitors. Its hard for a new brand to break into an established market, so we changed our plan, and now focus on Asia, like Taiwan, Japan and Korea.

Gary and Xavier, while realizing that entrepreneurs have to be willing to take risks, dont think of themselves as risk-takers. Financial stability is very important for both of us, says Gary. Perhaps we were more willing to take risks a few years ago, but now we both want families of our own. That changes your perspective. For us, being entrepreneurs is not just about making a profit, its about a shared passion and artistic vision.

More information about BeCandleTel 3586 0320Email info@becandle.com.hkWeb www.becandle.com.hkFacebook www.facebook.com/becandlehongkong*Watch the Way of the Candle video at http://vimeo.com/74079760

Gary Hui and Xavier Tsang graduated from the University of Technologyin Sydney and the Chinese University of Hong Kong, respectively. Gary did industrial design and Xavier did engineering. Xavier also studied at the Accademia Italiana Darte, Moda e Design in Florence. His first design service Atelier Poesia is still in business.

Two designers, Gary Hui and Xavier Tsang, are co-founders of BeCandle, a very original candle-making business. Both in their early thirties, they have built an international reputation, with support from YBHK.

BeCandle already has several popular series of products, like the Lost in Time Series which takes ideas and makes them into a new kind of candles. The old-fashioned phone candle with a dial is one example. As the candle melts, the whole phone disappears as well. Its a symbol for what can happen to things from the past.

Philosophy in a candle

More informationAddress 6 Brown Street, Tai Hang, Causeway Bay, HK G/F, Junction of Kimberley Road and Carnarvon Road, Tsim Sha Tsui, Kowloon, HK Web www.labmade.com.hk watch the video ice cream being made at https://www.youtube.com/watch?v=AUnLxyqsJSw

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Lab Made, the rst shop in Hong Kong selling made-to-order ice cream using liquid nitrogen, also called dry ice, was launched by Ronnie Cheng Hong-wang and Jennifer Chiu in 2011.

Shenzhen investment lift off

To conclude this section, we talked to a Shenzhen start-up, Barry Chen, who set up an asset management business after graduating in nance a few years ago. As young stock broker, he saved enough to start out with his own investment business.My company has a team of five from similar professional backgrounds and a great passion for investment. Disposable incomes and savings have increased rapidly and their demand for asset management has grown along with their appetite for risk.

Barry, who considers himself quite tolerant of risk, is nevertheless very aware of the need for financial security. Our aim is to provide a professional service to clients with stable, mature investment concepts. At present, our return from investment is 26%, far more than the market average.

In the short-term, we have begun to issue our first sunshine private equity products* and our long-

term aim is to become a powerful company, through stable, sustainable investment strategies. Although our clients are predominantly on the mainland now, we hope to expand our customer base to Hong Kong.

He believes that both Shenzhen and Hong Kong are good options for start-ups and is confident of the potential for his business to grow and prosper.

Barry Chens company is the Shenzhen Haochuang Investment Group. Co. Ltd. His initial contact with HKFYG was through the Shenzhen Youth Federation.

*For more on "sunshine private equity", go to http://www.nortonrosefulbright.com/knowledge/publications/59008/asset-management-business-in-china-in-a-nutshell

Award-winning ice-cream

Liquid nitrogen is super cold, according to Ronnie. This means the ice cream freezes very fast and has a smooth texture. Lab Made ice cream has become very popular, not only because its different but also because it comes in a wide range of flavours.

Ronnie Cheng and his girlfriend Jennifer Chiu first tasted liquid nitrogen ice cream in Britain. Their popular shop now has two outlets, one in Tsim Sha Tsui and the other in Tai Hang. Ronnie and Jennifer attended YBHK courses and enjoyed its help for business networking. Last year, with the support of YBHK, Lab Made became a Silver Award-winner in of HSBC Youth Business Award 2013.

One taster reports, ...frozen desserts are made to order at the display counter, in clouds of liquid nitrogen... The use of liquid nitrogen takes away the need for eggs and additional fat, making it a healthier option.

Innovative flavours include Hong Kong custard bun (lai wong bao), crunchy sea salt caramel, Horlicks and wheatgerm, lychee and longan yoghurt, mango and coconut sticky rice, mooncake and sticky toffee pudding. However, if you go to the shop, expect to see something new. The flavours on sale change all the time.

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Invigorating entrepreneurship

with Theodore Ma

Theodore Ma comes from a family in the jewellery business. A young entrepreneur himself, he is also the co-founder of CoCoon, the well-known Hong Kong co-working space and mecca for early-stage entrepreneurs.

Youth speak

entrepreneurshipTheodore Ma

CoCoons spacious 14,000 square-foot home in Tin Hau has big worktables, a library, meeting rooms, lockers, a photography studio, a 3-D printer, relaxing corners and ... a ping-pong table. But far more than a place to play or unwind, CoCoon is a place where innovative ideas are generated, business concepts are crystallized and like-minded people hatch inspired ideas.

CoCoons aimsFundamentally, a large co-working space, one of CoCoons aims is to team up business founders with potential co-founders. They share the burdens and they share the joys, said Theodore, Ive seen it happen many times right there at the ping pong table!

An online platform called CoCoon Market is central to another of CoCoons aims. Its a place where members can post job ads, for writers, designers, find freelancers, and find work themselves. This brings in cash flow and that makes businesses sustainable.

Putting investors and start-ups together is the third aim of CoCoon. That happens at regular in-house events such as pitch nights, seminars, meet-ups and workshops, with invited organizations like Google Start-up Weekend. At CoCoon pitch nights, entrepreneurs present their products or services to potential funders and co-founders alike.

Cross-pollinating ideas When asked where the ideas behind CoCoon came from, Theodore answered, ...there has been a lot of cross-pollination of ideas, but the idea for a co-working space in Hong Kong originally came from American entrepreneur, John Buford. He needed HK$100,000 to pay a rental deposit on a 1,000 square-foot space in Wanchai. My father and I were there when he made his pitch at Cyberport. Right away we decided to underwrite him and that was when he started up the first ever Hong Kong co-working space, Boot.HK.

CoCoon followed suit on a much bigger scale in a building owned by the Ma family. Now we have over 110 members and income from their fees amounts to about HK$200,000 per month. Its not enough to pay market rent but it pays to keep the lights on! joked Theodore. This is where start-ups take the first step. Its just before the incubation process, for people who want to start a business but dont know where to begin.

Emerging strengthsBefore potential members join, they have to give the right kind of answers to two open-ended questions. First, they are asked what they would like to contribute to CoCoon. We believe everyone has something to bring to the table and everyone has something to share.

Shenzhen investment lift off

CoCoonCoCoon

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Four innovative businesses from CoCoon

Carshare.hk http://carshare.hk/ For Hong Kong owners who want to rent out their cars and for drivers who want a car at a specific time and place.

Shopline http://www.shoplineapp.com/ Connects Hong Kong buyers and sellers through social media on mobile and web-based applications.

Ambiclimate www.ambiclimate.com A device that controls and monitors air-conditioners by infra-red to adjust settings.

Playroll http://www.playroll.me/ Offers pre-sale bookings and last-minute discounts for shows in Hong Kong.

CoCoon 3/F, Citicorp Centre, 18 Whitfield Rd, Causeway Bay

tel 3158 2999 web www.hkcocoon.org

Membership fees

Full-time members: HK$2,000 per month, all services

Connector members: HK$500 per month for partial services

The more you share the more you get. If they cant tell us what they want to share, they are not ready. Their ideas may be just emerging, but I believe that great people always want to work with other great people.

The next question for applicants is more of an aptitude test. They are asked what their pitch is, even though they may not have a business pitch ready at that stage. We want people who recognize their own strengths and can sum up briefly what they can offer. Thats what pitching is about. If they can answer well, they get access to the CoCoon community. It is based on word of mouth. Its the most important aspect of all our services.

Caterpillars to butteriesCoCoon also has a programme called EIRs (Entrepreneurs in Residence) which gives free consultations. When asked if this was mentorship Theodore hesitated. A lot of start-ups dont know how to work with mentors and vice versa. Imagine start-ups that are looking for funding. They wont want to express their doubts or say they need help. They may not ask the right questions and they may not be ready to listen to a mentor. Mentors, for their part, will not want to shoot down ideas. For the mentorship relationship to work there needs to be the right chemistry. It is an area we are working on. Its difficult to get it right.

Theodore summed up what CoCoon does by saying, Our members come here without business plans. You might say they are at a stage somewhere between caterpillars and butterflies. Most of them stay with us for 6-9 months and when the successful ones leave, we can see they were born to fly. CoCoon is there to help those butterflies emerge from the chrysalis, break out of the protective cocoon, spread their wings and fly.

Some Hong Kong start-up services in alphabetical order

Boot.hk http://boot.hk/boothk-home/CoCoon www.hkcocoon .orgCyberport http://www.cyberport.hk/en/about_cyberport/our_5_centres/entrepreneurship_centreChinese University Center for Entrepreneurship http://entrepreneurship.baf.cuhk.edu.hk/The Good Lab www.goodabhkThe Hive http://thehive.com.hk/HK Commons www.hkcommons.comHong Kong Science & Technology Park http://www.hkstp.org/en-US/Services-Programmes/Incubation-Programme/Overview.aspx#.UvCaIT3WLwoNest http://nestideas.com/StartupsHK http://www.startupshk.com/Youth Business Hong Kong (HKFYG) http://ybhk.hkfyg.org.hk/

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Some other Hong Kong incubatorsBoot.HK was Hong Kongs first co-working space and was originally located in Wanchai. It has merged with HK Commons in Sheung Wan and Lai Chi Kok. HK Commons targets technology start-ups and developers and is one of Hong Kongs largest start-up and entrepreneur communities. HK Commons services include lectures with well-known speakers and classes on tax-efficient strategies. They also help with incorporating new companies, registering websites, designing business cards and advising on government paperwork.

Nest provides shared office space, holds monthly pitch days, and some funding and mentoring. The Hive is a co-worker space for creative industries. Equipped with kitchens, lounges, sun terraces, and meeting rooms, it offers workshops, legal clinics, customer relationship management courses and fashion shows. The Good Lab is described on pages 27-29.

The EYE Program (Empowering Young Entrepreneurs) is a free incubation, training and mentorship programme, open to all young people in Hong Kong. It was designed by The Chinese University of Hong Kongs Center for Entrepreneurship with Google. Its one-year programme is focused on empowering and enabling young entrepreneurs and giving them access to mentors. Sponsored trips are arranged for outstanding participants to Google headquarters in Mountain View, US.

The Hong Kong Science & Technology Park (HKSTP) InnoCentre offers a two-year Incu-Design programme, which is part of the HKSTP Incubation Programme, supporting start-up companies involved in product design, fashion and jewellery, interior

design, branding and packaging, and the visual and media arts. HKSTP also has a three-year Incu-Tech Programme, a four-year Incu-Bio Programme and the 18-month Incu-App Programme. The Cyberport Incubation Programme supports the development of the Hong Kong information and communications industry by providing incubated companies with access to advanced facilities and resources, support in business development, and training. Both HKSTP and Cyberport offer significant financial support.

For more information on these, other co-working spaces and start-up help organizations, see box below and preceding article.

And if the plan fails... In contrast to the other young entrepreneurs interviewed, one brave young entrepreneur told Youth Hong Kong a different kind of story, echoing famous entrepreneur Henry Ford, who said, Failure is just a resting placean opportunity to begin again more intelligently.

"In 2003 and 2004, I and my partners started two businesses. However, things did not go according to my business plan and we lost HK$50,000. We were so frustrated and felt hopeless. In

2008, due to a great opportunity, we started a company again that sold clothes in Kwai Chung. But we under estimated the size of the competition and when the economy collapsed in 2008, we lost HK$300,000. Then, luckily, we joined YBHK and our mentor gave us lots of advice and new opportunities. We changed our business model to mall decoration and we have now been in operation for over 5 years. We are so glad that we didnt give up because we learned a lot from all the challenges. The experience gained definitely helped us build the success we have today."

Young designer with a business mind

a contribution from Education Post

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Youth speak| June 2013 | March 2014

Chailie Ho was used to being put on the waiting list during the school application process. She was never considered a bright student until her design talent blew away interviewers from Central Saint Martins College of Arts and Design, a prestigious British art school.

Emerging talentMy route to fashion school went like a dream. Everything came together so quickly and smoothly. First, I met a girl who was studying at Central Saint Martins College of Arts and Design and she helped me with my application. At that time, I had no idea that it was such a prestigious school. If I had I known, I dont think I would have applied, because of my underwhelming academic record. When I did A-level art, I kept a design diary, so that I would have a record of all the art projects that I had done. The diary did not earn me high marks in my A-level, but the interviewers from Saint Martins loved it! Going to school was never a smooth ride for me, but now all of a sudden I got the chance to attend one of the best in the world, she says.

From a young age I dreamt about being a university student, but study was not my strong point, says Chailie. I ended up on the waiting list, first while trying for a place in Form Six because I finished my HKCEE with only 13 points and I needed 14. Then I found myself on the waiting list once again when trying to get a place to do a Higher Diploma in fashion retail at the Hong Kong Polytechnic University.

Chailie got her place though, and in her final year on the Higher Diploma programme, she started thinking about becoming a fashion buyer, until her friends persuaded her that she had the talent to be a fashion designer. My friends told me a designer is the irreplaceable soul of a brand so I began to look up fashion design programmes.

I dont think local kids enjoy art. They do it because it enhances their rsum. Creative education should not be like

this. Everyone has their own style

www.educationpost.com.hk

I would go from shop to shop, trying to convince boutique owners

to sell my dresses

23

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After graduating, Chailie studied for a postgraduate certificate in innovative pattern cutting. A pattern cutter is someone who transforms a great design idea into reality. I received many offers from designers to cut patterns for them and I learned a great deal from them. The designers were very willing to share their design concepts with me, in order to enable me do my job properly. I was having a great time in Britain, but I missed my mother so in 2008 I decided to return to Hong Kong, she says.

After working as a fashion designer in Hong Kong, Chailie decided to fulfill her dream to start her own brand. With limited capital, she started her own business, Chailie Ho Fashion Studio, in 2010 with the support of a design incubating project by Hong Kong Science Park.

Incubated at Hong Kong Science ParkWhen, at the age of 27 Chailie launched her own label, the sophisticated and elegant design of her dresses took the local fashion scene by storm. Many celebrities ordered tailor-made dresses from her to attend red-carpet events. But despite her success, she did not forget about her humble beginnings and her early struggles.

When I first started, nobody knew about me. I would go from shop to shop, trying to convince

More informationChailie Fashion Studio

Shop 409, Former Police Married QuartersNo. 35 Aberdeen Street, Central, Hong Kong

Tel: +852 2319 2082

boutique owners to sell my dresses in their shops. My income was unstable. But soon people began to take notice. Approaching boutique owners has become easier. Then some actresses asked me to tailor-make dresses for them to attend important functions and my business began to take off, she says. Besides tailor-made dresses, Chailie also designs Hong Kong-themed scarves which are highly popular. Many firms have ordered the scarves to be presented to foreign guests as souvenirs. I do most of the sales of scarves online and have been receiving orders from retailers and individual customers from around the globe.

Promoting arts educationChailie plans to open her first boutique at the former Hollywood Road police married quarters in April. However, she is thinking of doing more than simply operating a clothing store. The boutique will not only be a place to showcase my designs, it will also be a space for me to promote art education. I have collaborated with institutes before to run fashion workshops for children and I hope that with my new shop I can host more such workshops on a consistent basis, she says.

The education system in Hong Kong has a lot of room for improvement, Chailie says, and that she hopes to contribute to it. Having gone through so many obstacles at school, I want to help. I dont think local kids enjoy art. They do it because it enhances their rsum. Creative education should not be like this. Everyone has their own style; some are good at cooking, music or design. I hope I can inspire children to love art. It is not something that they have to do, but I want to let them know that they may have a talent for it and it is something that they can pursue.

Phot

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Ber

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Chan

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China Chinas Torch Program from the MOST (Ministry of Science and Technology) began in the 1990s. The MOST made incubator construction a core part of its 10th Five Year Plan (2001-2005).2 The Torch Program has four major parts: Innovation Clusters with Science & Technology Innovation Parks, Technology Business Incubators (TBIs), Seed Funding (Innofund) and Venture Guiding Fund. Another key part of Chinas cluster strategy involves a national network of 1,000+ Productivity Promotion Centers. They provide consulting, promotion, product testing, hiring, training and incubation services to start-ups.3 The big, globally active Microsoft Ventures Accelerator has been in Beijing since 2012, providing start-ups with free cloud services, work space, market exposure, expert mentorship and strong technical support.4 Other global entrepreneurship support services that operate in China include Startupbootcamp, which partners Chinacclerator5. Telefnica is in partnership with Chinese incubator VIV-Virtue Inno Valley.6 Others include Innovation Works7, and Haxlr8r.8

TaiwanTaiwan encourages high-tech industry productivity and innovation capabilities. In 2010, it ranked 5th in the world for approved inventive patents.19 New investment opportunities include industrial parks, such as Neihu Technology Park, Nangang Bio-technology Park and Songshan Cultural and Creative Park. To encourage investment, the government offers a variety of incentives20 and low-interest loan schemes for R&D activities and headquarters establishment. It also offers a lower corporate tax rate for foreign investors and special incentives for Chinese investors. The Taipei City Government offers subsidies and tax incentives for SMEs21 if their investment projects are innovative, creative or hold development potential. It also subsidizes R&D in order to encourage technology innovation and research. Incubation centres include Appworks Venture and YSeed.22

ThailandThailand is actively encouraging investment in a range of industries, particularly for projects that bring in new technology and those that invest in less-developed provinces.23 The Thai Business Incubators and Science Parks Association was founded in 2009,24 when there were already over 70 business incubators. In 2010, it became part of the National Science and Technology Development Agency25 with four national research centres: Biotech, Mtech, NanoTech and NECTEC, with a technology management centre and a business incubator centre focusing on IT and technology incubation. By 2010, the centre had nurtured more than 320 pre-incubatees and more than 155 incubatees for IT and Technology businesses. AIS, Dtac and True Corporation all run incubation programmes to encourage start-ups.26

VietnamIn November 2013 the Ministry of Science and Technology secured US$110 million, mostly from the World Bank, for a five-year programme called FIRST, which supports Vietnamese start-ups. The aim is to create an entrepreneurial ecosystem of its own, like Silicon Valley.27 Both Hanoi and Ho Chi Minh City have established incubator centres, which include 5Desire, FICO by FPT, and Topica Founders Institute. In Saigon the big five are The Start Center and Saigon Hub, Egg Agency, mLab, which also has support from the World Bank, and Skynet. Saigon also has Quang Trung Software City an IT business park, designed for Vietnamese technology start-ups from universities. In 2013, Hatch.vn and Hub.IT opened in Hanoi. Apart from these, there are other government programmes to accelerate and support the start-up scene.

The first incubator was set up in 1959 at the Batavia Industrial Center in New York, providing start-ups with shared office space for a fee.1 Accelerators originated in Silicon Valley with Y Combinator in 2005. In the UK, Seedcamp was first to launch, in 2007. Today about half of all business incubators and accelerators globally serve the technology sector. This article gives snapshots of the situation in mainland China and elsewhere in Asia.

Asian incubators and accelerators getting down to business

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IndiaThe Federation of Indian Young Entrepreneurs9 supports young entrepreneurs to promote their businesses. It also concentrates on skill development, planning, financing and incubation. India has institute-based technology incubators supported by the government, private business incubators started by industry veterans and start-up accelerators supported by companies and venture capital funds. For example, the Indian Angel Network (IAN) incubator was established with the support of the National Science and Technology Entrepreneurship Development Board and the Department of Science and Technology. More than 50% of Indias incubators are in Delhi, Bangalore and Mumbai. Nearly 60% are managed by institutes or colleges. Some well-known college-based incubators include SINE (Indian Institute of Technology (IIT), Bombay), Villgro (IIT Madras), CIIE (Indian Institute of Management, Ahmedabad).10 Only 25% are investor-driven, including GSF, The Morpheus, and the Startup Center. Other accelerators and incubators include the Bharatiya Yuva Shakti Trust,11 Global Superangels Forum (GSF), and IDEX Accelerator.12

IndonesiaA BBC survey by international polling firm GlobeScan and the University of Maryland found Indonesia to be the most entrepreneur-friendly of the 24 countries surveyed. It was ahead of the United States, India, China and Australia. It also had the most people, 85%, saying their country valued innovation and creativity.13 The government is implementing a Startup Incubator programme14

to bridge the gap between entrepreneurship and business mentoring. It is also implementing regulation for incubator programmes in four major Indonesian universities. In 2011 four entrepreneurs launched the start-up community StartupLokal as an incubator or accelerator for start-up entrepreneurs. Other incubators include Project Eden, MerahPutih. Investidea, Bandung Ventures, Raja Capital, Ideosource and Batavia Incubator.

PhilippinesKickstart* was one of the first incubators launched in the Philippines, in March 2012. It provides funds, mentorship and education. Launchgarage, a 6-month accelerator programme in partnership with ProudCloud and Kickstart, provides a network of mentors. IdeaSpace holds a national competition, provides funding support, and offers crash courses on business. The UP Enterprise Center for Technopreneurship offers an Enterprise Business Incubator Programme, focusing on services in various technology fields. The Ayala Technology Business Incubator, or AyalaTBI Network, is a private sector incubator dealing with technology business incubation. It is in partnership with the University of the Philippines and the Asian Institute of Management. 15

*To be distinguished from Kickstarter, a popular crowd-funding platform

SingaporeThe Singapore Governments Incubator Development Programme (IDP) provides incubators and accelerators with grants to enhance capability development for innovative start-ups. IDP provides up to 70% in grants to be used in areas such as the development of new products/services, business financing, improved market access, mentoring, operating expenses, training and marketing. Incubators in the programme include Get2Volume, Golden Gate Venture Investments, Incuvest, Jungle Ventures, Red Dot Ventures, The Biofactory, and WaveMaker Labs. Singapore also has a government-backed entrepreneurial ecosystem of about 100 start-ups, tightly packed into a cluster in a former industrial building. Youth Business Singapore, an accredited member of Youth Business International, is also prominent, but JFDI is probably Singapores best known, with its quirky, difficult-to-forget name: The Joyful Frog Digital Incubator.16

South KoreaThe number of start-up businesses in South Korea has grown steadily in recent years and President Park Geun-hye pledged US$2.9 billion in funding, particularly in the technology sector.17 Private investors in start-ups receive government incentives, such as tax cuts and delayed deadlines for paying income taxes, if investors recycle their returns into new businesses. Through the Banks Foundation for Young Entrepreneurs, a group of 20 Korean banks provides financing, mentorship and business education to entrepreneurs. Each bank has committed between US$10 million and US$20 million to assist young Koreans in their 20s and 30s who have started ventures in the past three years. Incubators include SparkLabs, Strong Ventures, KStartup, Primer, IgniteSpark, Fast Track Asia, TJ Heaven, Founders Camp.18 25

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Bridging the pioneer gapA 2013 report from the Aspen Network of Development Entrepreneurs (ANDE), part of the Aspen Institute, highlights the fact that thousands of early-stage innovators try to launch start-ups every year in less-developed areas but very few are able to build the teams, find the customer base, or raise the necessary investment funding.

Entitled, Bridging the Pioneer Gap: The Role of Accelerators in Launching High-Impact Enterprises, the report which focuses on social entrepreneurship concludes, The number of incubators and accelerators providing tailored support to social enterprises continues to grow. In many countries, these incubators and accelerators are the first entry point for social enterprises into a broader ecosystem and they play a critical role in bridging the pioneer gap.

Nevertheless, as the authors point out in their conclusion, We have very little systematic data on how accelerators are performing and many are not even collecting data ... we need much more data on incubator and accelerator effectiveness to assess the quality of services provided as well as the importance of selection and networks.28

Entrepreneurial hubs and ecosystemsFor those who have their big idea, want to take the plunge, but need guidance and support, applying to a start-up incubator may be a better option than going to a business school. Choosing the right one is the key.

As an article in the Harvard Business Review pointed out, There is a very real knowledge gap in the early-stage start-up game, on both sides of the table. First-time entrepreneurs lack the seasoning to captain a steady ship through turbulent waters. Inexperienced friends and family (and, increasingly, crowd-sourced investors) lack the ability to gauge the viability of a business, or to mentor nave entrepreneurs ... However, there are over 7,500 business incubators around the world. Most of them fail.29

Leveraging for early-stage companies can achieve good results, as can building entrepreneurial ecosystems to support them. However, innovation will always be the key element in any successful start-up hub. For that there have to be innovative entrepreneurs with the freedom to express ideas.

Given opportunities and freedom, there is great scope for innovation-led growth in fields such as education, IT, environment, health, transport, energy and food. The Global Innovation Index 2013 reports that Hong Kong ranks 7th for innovation and comes first among all southeast Asian economies. Singapore is ranked 8th. The top ten rankings all go high-income economies. Among other countries covered by this article in either south or southeast Asia, South Korea ranks 18th, mainland China 35th, Thailand 57th, India 66th, Vietnam 76th, Indonesia 85th and the Philippines 90th. [Taiwan was not ranked.] Of the middle-income countries, China, India and Vietnam are the most outstanding for innovation.

1. http://www.avcj.com/avcj/analysis/2292527/asia-incubators-from-acorns-to-oaks

2. Chandra, A & Fealey, Tim. Business Incubation in the United States, China and Brazil. International Journal of Entrepreneurship, Volume 13, Special Issue, 2009, 67-87

3. http://steveblank.com/2013/04/11/chinas-torch-program-the-glow-that-can-light-the-world-part-2-of-5/

4. http://www.prnewswire.com/news-releases/microsoft-ventures-empowers-startups-in-china-and-asia-turns-brilliant-ideas-into-great-companies-240231861.html

5. http://chinaccelerator.com/blog/110

6. http://techcrunch.com/2014/02/18/wayra-reaches-into-china/

7. http://en.chuangxin.com/

8. http://www.economist.com/news/special-report/21593590-why-southern-china-best-place-world-hardware-innovator-be-hacking

9. http://www.youngceoindia.com/Default.aspx

10. http://www.flexingit.com/blog/incubators-accelerators-in-india-driving-or-supporting-innovation-unpeeling-the-start-up-ecosystem-part-ii-18/

11. http://www.youthbusiness.org/where-we-work/

12. http://www.economist.com/blogs/schumpeter/2013/04/start-up-incubators-india

13. http://www.thejakartaglobe.com/archive/the-rise-of-the-tech-start-ups-in-indonesia/

14. http://www.globalindonesianvoices.com/10897/the-indonesian-governments-support-for-start-up-companies/

15. http://webgeek.ph/startup-incubators-accelerators-philippines/

16. http://www.techinasia.com/eight-more-incubators-join-singapores-technology-incubation-scheme/

17. http://online.wsj.com/news/articles/SB10001424127887323393804578554681586293800

18. http://thebridge.jp/en/2013/06/startup-incubators-accelerators-asia-pacific

19. http://www.startup.taipei.gov.tw/en/page3-1.htm

20. http://www.startup.taipei.gov.tw/en/page1-5.htm

21. http://www.startup.taipei.gov.tw/en/page2-1.htm

22. http://thebridge.jp/en/2013/06/startup-incubators-accelerators-asia-pacific

23. http://www.thailand-business-news.com/investment-climate-in-thailand/performance-requirements-and-incentives

24. http://www.wainova.org/members/thai-bispa

25. http://www.nstda.or.th/bic/index.php/th/about-us

26. http://www.techinasia.com/thailand-big-3-telcos-power-startup-ecosystem/

27. http://www.techinasia.com/ministry-science-tech-vietnam-pours-110-million-startupsministry-science-tech-vietnam-pours-110-million-startupsministry-science-tech-vietnam-pours-110-million-startupsministry-science-tech-vietnam-po/

28. http://www.aspeninstitute.org/sites/default/files/content/docs/ande/Bridging%20the%20Pioneer%20Gap%20The%20Role%20of%20Accelerators%20in%20Launching%20High%20Impact%20Enterprises%20.pdf

29. http://blogs.hbr.org/2013/08/the-problems-with-incubators-a/

30. http://www.wipo.int/export/sites/www/freepublications/en/economics/gii/gii 2013.pdf

Sources

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Social entrepreneurship involves setting up companies that pursue innovative solutions to social problems. The Good Labs convenor and one of its founding directors, Ms Ada Wong, explained that her goal is to create a hub where edgling entrepreneurs can start up ventures with sustainable social value. Two students respond.

Fine-tuning business plans, working out how to market products and creating an online presence are all part of hatching any new business. But unlike other start-ups, would-be social enterprises also have to work out how to measure performance when the value of their goals cannot be counted in dollars, how to attract appropriate investors, and whether to take on the complex challenges of ventures that give a positive return to society.

Finding meaning in workFor the last of those questions, Ada Wong has a simple answer People naturally seek meaning in their work, she told Youth Hong Kong. Thats why the idea of social enterprise is attractive, especially to young people. It has inherent meaning and can give a sense of fulfilment that being an employee cannot bring.

The Good Lab is a hub for people and organizations with new methods and mindsets. Founded about two years ago as a place where people with entrepreneurial flair could meet, it has tri-sector collaboration and social change is fostered. Its members identify innovative and creative solutions for social issues and The Good Lab helps nurture them with talks, workshops, networking and mentorship which teach them how to implement their ideas.

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Innovative solutionsto social problems

with Ada Wong

companies that pursue innovative solutions to social problems. The Good Labs convenor and one of its

, explained that her goal is to create a hub where edgling entrepreneurs can start

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Perspective| March 2014

Dialogue in the Dark provides jobs to the disabled. The en