China's digital economy unlocks new opportunities for asset-light startups

Driven by digital technologies, young entrepreneurs are leveraging online tools and platforms to transform their skills and creative ideas into marketable products and services. Unlike traditional asset-heavy business models, these entrepreneurs are building their ventures with lower costs and greater flexibility.

Leng Ruipeng's entrepreneurial journey began in March 2024. A software developer with a passion for badminton and tennis, he set out to create a product that could track and analyze sports performance data. After testing the technical feasibility, he made the bold decision to quit his job and focus on developing data-driven sports apps.

This photo taken on July 2, 2025 shows a sign of the 2025 Global Digital Economy Conference in Beijing, capital of China. (Xinhua/Zhang Chenlin)

In May 2024, Leng launched his first app Yuji, which generated nearly 20,000 yuan (about $2,800) in revenue, with 80 percent of beta users opting for the paid version. Later, in November 2024, he released TennisACE, which generated over 400,000 yuan in 10 months.

"At first, I was just sharing my exam prep experience," said Ma Xiaoxue, who wrote a post detailing her study tips for the postgraduate entrance exam.

"Initially, only a few younger students asked me for advice, but over time, I was getting hundreds of inquiries daily. I realized this could be a real opportunity," she added.

Seeing the growing demand, Ma started selling 15 sets of carefully organized study notes. As demand increased, she expanded her offerings to include exam consulting and specialized courses.

At the same time, a group of young entrepreneurs from Beijing Film Academy was embarking on their own startup journey.

"We don't need an office. All we need is a computer to get started," said Yang Xiaolu, a second-year postgraduate student. In late 2022, she and two classmates launched a business focused on AI-generated visuals. Today, their team has grown to 10 people and generates 2 million yuan in annual revenue.

When asked about startup costs, the three entrepreneurs agreed their biggest investment was time and energy.

The growing policy support has provided a strong foundation for young entrepreneurs' ventures.

When Yuji began to gain traction, Leng's team received interest from investors. However, the first step was to establish a company. He explained that the team moved into a shared office space set up by the government of Jinniu district in Chengdu, southwest China's Sichuan Province, in partnership with real estate management company Beeplus.

Low rental fees and streamlined, one-stop services for company registration and bank account setup made the process much easier. "This really lowered the barriers to starting up, allowing us to focus more on the product itself," Leng said.

In recent years, the government has introduced a series of policies to support the growth of the digital economy. Many regions have established entrepreneurship hubs that provide full-service support, including office space, company registration and business guidance. Additionally, startup subsidies, guaranteed loans, and data asset-backed loans offer expanded opportunities for entrepreneurs at every stage.

Li Chang'an, a researcher at the Academy of China Open Economy Studies at the University of International Business and Economics, noted that the nature of the digital economy is especially well-suited to asset-light entrepreneurship.

"The barriers to entry are very low, which greatly expands the pool of potential entrepreneurs, making it accessible to a much wider range of people," Li said. He believes the rise of internet platforms has broken down traditional industry barriers, allowing creativity and insight to flourish in unprecedented ways.