China creates new model of startup incubation; HCH incubates 5 listed companies

BEIJING, Nov. 30, 2020 /PRNewswire/ --Starting a business involves great risks in any country, while in China, it's harder to start a business. However, driven by the popular entrepreneurship and innovation campaign, numerous creative ideas and distinctive business models have emerged in China over the years, including "rooted entrepreneurship" put forward by Hai Chuanghui (HCH).

HCH is positioned as an accelerator platform for global entrepreneurs. On this platform, entrepreneurial resources from all over the world are available to entrepreneurial and innovative projects, which will increase the chances of success.

"Rooted entrepreneurship" is a new model that is different from those in America, Japan, Israel and other countries. Simply put, it stresses that entrepreneurs are not isolated and that with solid foundation and guarantee, they start businesses with the support of Haier Group's open industrial resources.

HCH is an entrepreneurial platform for Haier Group to transform from product manufacturing to maker incubation. Zhang Ruimin, Chairman of the Board of Directors and CEO of Haier Group, said in 2014, "In the future, Haier will no longer manufacture products. We will incubate makers. If we manufacture products, we'll be bound by ourselves, but if we incubate makers, we'll have a lot of new products and new ideas." After that, Haier abandoned its hierarchical structure, transformed the traditional pyramid management model and began "changing the company into a platform, turning the employees into makers and providing users with personalized services."

The transformation was seen as self-destructive, but the results were beyond expectations. With a flat structure that resembles a network, Haier was turned into an entrepreneurial platform committed to helping its employees become makers. That was how HCH was born. It is not only a platform Haier built to help its employees start their own businesses, but one for global entrepreneurs. HCH created a very distinctive model called "root entrepreneurship." More importantly, it created a brand new model called "shared entrepreneurship for big enterprises" through continuous evolution.

On September 15, 2020, HCH released The Establishment and Operation Specification of Large Enterprises Shared Entrepreneurial Platform.

Built by large enterprises independently or together with other institutions, shared entrepreneurial platforms for large enterprises mainly aim at entrepreneurs inside and outside large enterprises as well as small and medium-sized enterprises (SMEs).They accelerate the growth of entrepreneurs and SMEs with their own and their partners' industrial chain and supply chain resources and services. In the meantime, large enterprises obtain equity gains by investing in startups, create new growth opportunities through mutual promotion of application scenarios and innovative technologies, enhance brand awareness and contribute to society.

The Standards provides an entrepreneurial model and a path for large enterprises going through innovative transformation, and helps them start "the second growth curve." By making use of new industrial and intelligent incubation platforms built by large enterprises, SMEs can obtain the driving force of industrial chain resources and increases the rate of successful entrepreneurship. In the long run, the Standards is conducive to building an all-win innovative and entrepreneurial ecosystem.

To date, HCH has established 40 accelerators in 11 countries around the world, with a total value of more than 160 billion yuan, and has successfully incubated five listed companies, five unicorns and 23 gazelle companies.

From helping Haier employees start their own businesses to making resources available to global entrepreneurs to accelerate innovation; from empowering entrepreneurs to helping large, small and medium-sized enterprises get connected and grow, and establishing new models of innovation and entrepreneurship, HCH is well on its way towards creating an entrepreneurial rainforest as a leader in China's startup incubation industry.

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SOURCE Hai Chuanghui (HCH)