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Zhangjiang incubators help small and medium-sized companies weather difficulties

Updated: 2020-03-10

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Zhangjiang Science City [Photo/]

Incubators in Zhangjiang Science City of the China (Shanghai) Pilot Free Trade Zone are helping alleviate the financial burdens of small and medium-sized companies.

On Feb 28, Shanghai Zhangjiang High-Tech Park Development Co Ltd released guidelines asking incubators to reduce rents on small and medium-sized companies. 

According to He Dajun, general manager of Shanghai Zhangjiang High-Tech Park Development Co Ltd, 90 percent of all companies in the park are small or medium-sized.

"They (small and medium-sized companies) are the most important and vibrant force in Zhangjiang Science City," he said, "the steady growth of these companies is essential for stable employment.”

Members of the Zhangjiang High-Tech Park Incubation League have already responded to calls to waive rents for small and medium-sized companies. Around 250 companies have benefited from the policies.

Damaicun Incubator, a member of the Zhangjiang High-Tech Park Incubation League, announced that it would waive two months of rent totaling nearly 1.5 million yuan ($215,967) for 27 companies being incubated by it. Damaicun Incubator focuses on the incubation of artificial intelligence companies.

Li Chuang, co-founder and CEO of Damaicun Incubator, said that the company itself is also a small company and was experiencing financial difficulties.

"But the Zhangjiang High-Tech Park has exempted us from rent, so we should try our best to help other companies," Li said, "we will return rents that were paid on a quarterly basis.”

Another medical care company incubator, the Pujianjikang Medical Entrepreneurship Base, also waived rents for companies and provided them with research guidance. 

Companies in the base have developed new monitoring equipment, robots for medical purposes, and more to help prevent and control the virus. 

In order to alleviate the financial burdens of small and medium-sized companies as soon as possible, the Zhangjiang High-Tech Park plans to launch an online application system through which companies can upload documents to apply for rent waivers, thus avoiding visits to local official departments.

Zhangjiang High-Tech Park also established a special team to provide financial services for small and medium-sized companies experiencing financial difficulties.