really? you might think the question is invalid. isn't it true that there are many government-sponsored incubators? how to explain that some of the best ventures in the country come from shanghai? ... but if you talk with people about their startups in shanghai, they will tell you a lot of stories and make you question - "what's wrong with shanghai?"
besides a risk-averse culture and relatively well-developed economy, here is another reason why entrepreneurship is not flourish in shahghai.
startups prefer to rent cheap offices and there are plenty in residential buildings in the city. sure, there are many nice office buildings in shanghai, but most startups and small business still prefer the ones in residential buildings, they are cheap and gives them extra margin of survival.
recently the real estate market for office buildings is not very encouraging in shanghai, so, policies concerning the new company registration are changing. they don't allow new companies to "registered" in residential office buildings. according to some policy-makers, these startups, hopefully, will move to 5-star office buildings to work!
a strong government hand in almost every aspect of economy, no wonder there are great
mismanagement and, no wonder
things like this happen
a startup forum in shanghai (i can feel the enthusiasm!)