The measures require local governments to offer more financial support to startups and accelerate development of business incubators, as well as boost commercialization of research results.

Jilin took a step ahead by revealing its detailed plan in June, pledging to lift restrictions on registration of startup incubators and allow college students and researchers to establish businesses full-time without being expelled from the school or research institutes.

"The incubator offered us work space and other free services, as well as opportunities to get venture capital," Niu said. The team obtained 200,000 yuan (32,220 U.S. dollars) as startup capital from the Ministry of Human Resources and Social Security and is expecting social investors.

The 7,000-square-meter incubator, located near five universities in Jilin's capital Changchun, opened in December, 2014. It now accommodates 23 startups, including one that was listed on the New Third Board, a national share transfer system for small and medium-sized enterprises, in June, said Liu Chunsheng, found of the incubator.

"Here we consulted government officials and business insiders on policies and industry development, and had training on how to run a startup. That helped us go public quickly," said Wang Shuo, deputy general manager with Xuhai Technology, which helps clients in traditional industries to integrate their business with mobile Internet.

Liu said his mission is to bridge capital with good ideas. "When I started my business in Changchun many years ago, money was a big headache."

Such incubators have also thrived in big cities like Shenyang, Dalian and Harbin, signaling a growing passion for startups in the rustbelt.

Earlier this month, Heilongjiang authorities set up a company dedicated to offering loan guarantees for college entrepreneurs.

However, changes will not happen overnight. "It remains a question whether the supportive policies can really benefit entrepreneurs," said Xu Wenfang, a political advisor in Jilin.

In addition, bias against small and micro-sized enterprises are held by some officials, as well as young job seekers and their parents, Xu said.

A survey conducted by Jilin's provincial development and reform commission this year showed that most of local college students coveted steady jobs in government agencies and state-owned companies, while only 9.5 percent of them considered opening their own company.

Niu believes the path he chose was "less traveled, but more interesting."