Shenzhen encourages entrepreneurship and innovation

We are in an era that calls for and rewards entrepreneurship and innovation. However, there are often daunting challenges to face when getting started in business. Behemoths like Microsoft, Apple, Tencent, and Alibabaall faced these as they developed from small enterprises launched by individuals before evolving into the powerhouses they are today. To support such ventures and ambitions, Shenzhen spares no effort in optimizing the city to support innovation and entrepreneurship, as it strives to support start-up founders by providing them with an idealbusiness environment.

As early as 1987, Shenzhen issued temporary regulations to encourage scientific and technological personnel to set up private enterprises, a move that has attracted a large number of tech professionals to conduct R&D efforts in the city. In the same year, Ren Zhengfei borrowed 21,000 yuan from a friend and incorporated Huawei Technologies Co., Ltd. in Shenzhen. Today, Huawei has become the world's leading provider ofinformation and communication technology solutions.

Commercial entities that go from strength to strength are an important indicator of Shenzhen's innovation and entrepreneurial vitality. By the end of September 2022, the number of commercial entities in the city exceeded 3.86 million, and the entrepreneurial density continues to rank first among large- and medium-sized cities in China.

"Take the lead in the race. I'm not afraid to fall.Life is burning with passion, dreams and hopes are ahead, and tears accompany my pride.Come on, let's create together ......"

1. Entrepreneurship projects can get up to 1 million yuan infinancial aid

The Shenzhen Municipal Science and Technology Innovation Commission has formulated the "Shenzhen Entrepreneurship Project Management Measures" to supportentrepreneurial outfits and teams who wish to participate in relevant competitions, and encourage various organizations to arrange exchange activitiesin order to create an environmentconducive to innovation and entrepreneurship.

Main conditions:

(1) Entrepreneurship subsidy program

Companies applying for this subsidy should meet the following requirements:

① The enterprise must be legally registered in Shenzhen (including the ShenshanSpecial Cooperation Zone, same as below), and have been registered for a period not exceeding five years at the time of participating in this contest;

② They must have participated in the previous year's China (Shenzhen) Innovation and Entrepreneurship Competition and advanced to the semifinals or higher, or participated in the provincial-level competition and won an award;

③ The name of the applying project and that of the project participating in the competition should be the same, and the project leader should either be the person in charge or a core member of the competing project;

④ Its sales revenue for the previous year should not exceed 200 million yuan, if the applicant company is a participating company in the China (Shenzhen) Innovation and Entrepreneurship Competition.

（2）Maker Exchange Program

Companies applying for this program should meet the following requirements:

(1) It must be a national science and technology enterprise incubator that was registered in Shenzhen as a legal entity, the operating company of a State-registered maker space, or an organizer of high-level maker exchange activities approved by the municipal government;

(2) The maker exchange activity must be open to the public and serve asa public-benefit event with at least 100 participants;

(3) The event should have been held in Shenzhen within one year and have not received any financial support from the municipal government.

Policy benefits:

Every enterprise will receive a maximum of 1 million yuan in financial support. If the project won the provincial competition and received provincial science and technology funding, the amount should not exceed the level of provincial funding, and should not exceed 50% of the funds raised by the company or institution in charge of the project.

The amount of funding available for a single competing team is capped at 500,000 yuan.

Ex-post subsidies will be given to eligible hosts of qualified maker exchange activities. The amount of funding should not exceed 50% of the audited expenses and must be capped at 500,000 yuan.

Application:

The applicant shall fill in the project application form online through Shenzhen Science and Technology Business Management System.

2. Incubators can receive up to 500,000 yuan of incentive grants

The Shenzhen Municipal Science and Technology Innovation Commission has formulated the "Shenzhen Technology Business Incubators and Crowdsourcing SpacesManagement Measures" to guide technological business incubators and crowdfunding spaces to further improve their service quality, innovate the incubation service model, and achieve high-quality and sustainable development.

Application conditions:

Municipal incubators should meet the following conditions:

(1) The operator of the incubator has been registered as a legal entity in Shenzhen or the ShenshanSpecial Cooperation Zone.

(2) The incubator has operated for no less than two years, with a clear development direction and a complete operational management system and incubation service mechanism.

(3) The incubatoris no smaller than 3,000 square meters, of which the space used by incubating enterprises (including public service areas) should account for more than 75%. The number of incubating enterprises should be no less than 20 and the average number of incubating enterprises per 1,000 square meters is no less than three. Among the incubating enterprises, those that have applied for patents should account for no less than 50% of the total number, or the number of enterprises with valid intellectual property rights should account for no less than 30%. The total number of incubating startups that have graduated is more than eight.

Municipal mass-entrepreneurship spaces should meet the following conditions:

(1) The operator of themass-entrepreneurship space should be an enterprise or public institution that was registered in Shenzhen or the Shenzhen-Shanwei Cooperation Zone as a legal entity.

(2) The mass-entrepreneurship space has been operating for at least one year, with a clear development direction, clear business model, and sustainable development capability.

(3) The mass-entrepreneurship space owns a service space of 500 square meters or provides no less than 30 startup office cubicles, and has public service sites and facilities for meetings and negotiation, project demonstration, etc.The area occupied by startup office cubicles and public service sites should not be less than 75% of the total area. The number of startup teams settled in the mass-entrepreneurship space should be no less than 20, and they must have settled in the city for overthree months but no longer than 24 months. The number of enterprises newly registered by the startup teams in the previous year is no less than six. Alternatively, at least two startup teams have obtained financing in the previous year.

Policy benefits:

The municipal science and technology authority will give subsidies of 500,000 yuan and 300,000 yuan, respectively, to incubators and mass-entrepreneurship spaces that are rated as excellent in the current evaluation process, and will recommend them to apply for national and provincial recognition and registration.

Any operator that is rated as excellent in the current evaluation process will receive 50,000 yuan from the municipal science and technology authority for each incubated enterprise that is certified as a national high-tech enterprise or obtains a provincial science and technology award. The subsidy for a single incubator and mass-entrepreneurship space is capped at 1 million yuan. The same item for the same incubated enterprise should not be repeatedly rewarded.

Application：

According to the requirements of the application guidelines, the application form and the following materials should be submitted within the specified time

3. Technology-based micro, small and medium-sized enterprises can receive up to 1 million yuan in subsidies for loan interest and guarantee fees per year

The Shenzhen Municipal Science and Technology Innovation Commission has formulated the "Measures for the Management of Subsidies for Loan Interest and Guarantee Fees for Micro, Small and Medium-sized Tech Companies in Shenzhen." These were drawn up in order torelieve the financing pressure felt by micro, small and medium-sized tech companies, and to build a dynamic technology innovation ecosystem. Micro, small and medium-sized tech firms that are included in the loan subsidy pool will receive financial support for loan interest, small loan guarantee insurance fees and guarantee fees.

The measures focus on the demands of enterprises to address the difficulty and high expense involved in obtaining corporate loans. On the basis of the interest subsidy policy, other measures related to insurance premiums and guarantee fee subsidies have also been added. While reducing the financing cost of enterprises, professional financial tools are also used to alleviate loan problems. At the same time, greater support is given to projects applying for loans for the first time through encouraging partner banks to pay attention to small and micro-sized enterprises that have never received loans.

The Shenzhen Municipal Science and Technology Innovation Commission has publicized 410 projects it is planning to subsidize for theloan interest and guarantee feesof micro, small and medium-sized enterprises for 2022:

（http://stic.sz.gov.cn/gkmlpt/content/9/9797/mpost_9797860.html#4163 ）

Main conditions:

Enterprises applying for subsidies for loan interest and guarantee fees should meet the following conditions:

(1) Registered in Shenzhen (including the Shenshan Special Cooperation Zone) asalegal entity;

(2) In the previous year, the total number of employees did not exceed 500, the sales revenue reached no more than 200 million yuan, and the total assets were no more than 200 million yuan;

Has one of the following qualifications:

(1) A national high-tech enterprise within the required period;

(2) An enterprise included in the national information base of small and medium-sized tech companies;

(3) Within the last three years it has won an award atthe China (Shenzhen) Innovation and Entrepreneurship Competition, or at other competitions hosted by thescience and technology authorities of Shenzhen and Guangdong Province.

Policy benefits:

The municipal science and technology authority has set the following subsidy quotas according to the industrial sector, nature, scale and other factors related to the applying enterprises:

(1) The loan interest will be subsidized at50% of the actual interest paid. For enterprises receiving loans for the first time, the proportion will be increased to 70%.

(2) The guarantee insurance fees for small loans will be subsidized at 50% of the actual fees paid, and a single enterpriseshould receive no more than 500,000 yuanin such subsidieseach year.

(3) The guarantee fee will be subsidized at 50% of the actual payment, and a single enterpriseshould receive no more than 300,000 yuanin such subsidieseach year.

(4) A single enterprise can obtain 1 million yuan at most each year in interest and guarantee fee subsidies, and the total amount of subsidies it can receive is capped at 3 million yuan while themeasures remain valid.

Applicationprocedures:

The municipal science and technology authority will regularly compile and publish application guidelines for loan interest and guarantee fee subsidies, and will specify the application conditions, application materials, application time, application procedures, and so forth.