Nantong has released new directives aimed at raising the prospects of educated young people, as Ding Congrong, He Jiayu and Xu Chao report.

Nantong, a coastal city in Jiangsu province, has rolled out a guideline to help the city’s graduates start their own businesses.

A series of preferential policies, such as low-interest loans and subsidies, have been mapped out to facilitate new graduates to create their own careers.

Raising the initial funding is one of the biggest concerns for many graduates who in-tend to start their own business, said Shen Zhihe, director of the city’s employment management center.

To solve the problem, the city has lowered its loan threshold for recent graduates, Shen said.

Normally, people who apply for a loan must have collateral, such as a house or car.

“However, these are not things that every young graduate who has just walked out of the university gate possesses,” he said.

In response, the city has come up with a detailed plan to exempt this precondition for outstanding graduates.

For instance, young people who performed well in an entrepreneurship competition will not need to have collateral, according to the new guideline.

The requirement has also been scrapped for owners of online stores that have been open for more than a year, and have accumulated credit, the guideline said.

College students scan a QR code to access a WeChat-based campus service platform launched by two sophomore students in Nantong, Jiangsu province. [PROVIDED TO CHINA DAILY]

Xue Haibo is the first graduate in Nantong who has benefited from the new policy.

Due to his good performance in a local entrepreneurship competition, he received a loan of 120,000 yuan ($18,850), despite not having a mortgage.

“The 120,000 yuan was really a timely help. Thanks to the money, I survived the most difficult time,” said Xue, who now owns an Internet technology company.

He said he hoped more young people will make good use of the policy.

In addition to loans, the city government is also offering subsidies to young entrepreneurs.

According to the new guideline, graduates who start businesses for the first time and operate for more than six months will be eligible for a one-time subsidy of 3,000 yuan. They can also receive a subsidy of as much as 5,000 yuan once they start to employ staff.

New companies can also enjoy subsidies for water and electricity bills.

Their value-added and business taxes will also be levied at a lower level for the first three years.

“This type of comprehensive support for graduates is rare in Jiangsu province, and even the whole country,” Shen said.

The guideline also set a three-year goal to boost graduate employment.

The city plans to guide 3,000 graduates to start their own businesses by 2017.

The move is expected to create more than 150,000 jobs, the guideline estimates.

Ten business incubators are in the pipeline, and 300 projects appropriate for fresh graduates have been mapped out by the government.

To encourage graduates to take the bold first step, the guideline has also streamlined the registration process.

New graduates can finish their registration at the city’s Department of Industry and Commerce as long as they can provide a “legal use” certificate for a public place.

Their inventions and patents can be accepted as registered capital during the registration review.

Facing grim employment prospects, Nantong has also opened the country’s first information service platform for university graduates.

The local employment management center provides timely employment information updates.

To improve efficiency, the city has set up online consultation platforms for imminent graduates at their own universities.

Students can search for employment information of graduates in recent years to give them a better idea of where to send their resumes.

They can also seek advice and check employment laws and regulations through the platform.

In 2014, the employment rate for graduates who are Nantong natives was more than 90 percent, Shen said.

Nearly 600 graduates started their own businesses successfully, creating more than 2,600 jobs.

The city also granted loans of nearly 40 million yuan to graduates.

Contact the writers through dingcongrong@chinadaily.com.cn