China has seen the biggest growth in start-up businesses globally over the past five years, according to a report issued by a British network of independent accounting and consulting firms. But what’s behind this trend, and what should be done to tackle the challenges that many beginner entrepreneurs will face?

Ten o’clock in the morning, Li Wandong starts his day. Li runs a small company in Guangzhou, producing chemical and industrial products made for ceramics and lithium battery. Two years ago, he worked as a sales manager, but the more he knew about the industry, the more eager he was to try something more creative.

Li established his own company in 2013 and is quite optimistic about the new energy industry.

“The government offers various subsidies to cars using new types of energy, that’s a clear signal. Car manufacturers are ready for explosive growth, for us - battery material provider, we are following the trend as well,” Li said.

Li chose to open his business in a start-up center at Sun-Yat-Sen University, which now houses 260 companies. What attracted him was not only subsidies on rent, but also comprehensive services.

“We provide all kinds of support in banking, insurance, legal affairs and accounting. Besides, we have a venture capital fund to invest companies based in this center. We’ll assess their business plans and offer some guidelines,” Qin Hua, vice manager of Guangzhou Sun-Yat-Sen University Science Park, said.

This is merely one example of the start-ups boom in China.

When it comes to global start-ups over the past five years, China is king, according to a report by a British network of independent accounting and consulting firms. The rapid growth comes as China adopts business-friendly policies aimed at countering its economic slowdown.

In June, the State Council issued a statement encouraging business startups and innovation, and experts point out that this trend should be seized rationally.

“Those innovative startups are the next trend, they’ll help foster economic transformation and upgrading. But government should avoid supporting entrepreneurship blindly, and avoid wasting resources,” Professor Li Xinchun with Sun-Yat-Sun University’s School of Business said.