Problem:

How do different Chinese venture capitals affect the establishment of local start-ups and SMEs in
China?
Title :
FINANCIAL ASSESSMENT OF LOCAL START-UPS AND SME/S IN CHINA: THE RISE

OF VENTURE CAPITALS AND ITS IMPACT ON ENTREPRENEURSHIP

Statement of the Problem:

This study will be designed to evaluate the impact of different Chinese venture capitals on the
establishment of local start-ups and SMEs in China.
Specifically, this study intends to answer the following questions:
1.) Financially, how do these venture capitals give rise to a number of start-ups in the country, in
terms of:

a)
2.) Will there be a significant difference on the proportion of sales and demands of Chinese products
and services between the last and the current decade?

3.) What will be the effects of the recent upsurge of cases of Covid-19 on the progress/regress of
export-oriented Chinese companies after a year, in terms of:

4.) Will there be a significant effect on the number of export-oriented Chinese companies projected
after 5 years?
a) Rate of increase/decrease of export-oriented establishments/companies in China

Sampling Method:
This study applies quota sampling method which is a non-probability sampling method that
selects a specific, predetermined number of respondents, called a quota. The respondents will be sourced
from the business sector.

Statistical Tool:
The main statistical tool to be used will be Excel and the Statistical Packages for Social
Sciences (SPSS) application for windows software (version 22.0). Other gathered data that
would require more than an inquiry from the Ministry will be processed using a one-sample z-
test via RStudio. The statistical tool will be used to assess and compare the different statistical
measures to be used in the study (i.e. Profit gain/loss, employment/unemployment rate, etc.).
Statistical Treatment:
To process and summarize the gathered data, the following statistical tool/s and/or
formula/e will be used in this study:
library(BSDA)

#enter the data obtained from the 40 respondents

data = c(88, 92, 94, 94, 96, 97, 97, 97, 99, 99,
105, 109, 109, 109, 110, 112, 112, 113, 114, 115, 88, 92, 94, 94, 96, 97, 97, 97, 99, 99,
105, 109, 109, 109, 110, 112, 112, 113, 114, 115)

#perform one sample z-test

z.test(data, mu=100, sigma.x=15)

One-sample z-Test

data: data
z = 0.90933, p-value = 0.3632
alternative hypothesis: true mean is not equal to 100
95 percent confidence interval:
96.47608 109.62392
sample estimates:
mean of x
103.05

Where,
 mu - a single number representing the value of the mean or difference in means specified
by the null hypothesis
 sigma.x - a single number representing the population standard deviation for x
 statistic - the z-statistic, with names attribute "z"
 p.value - the p-value for the test