China's self-employed businesses are set to receive stronger support from online platforms under a new action plan designed to ease market entry, lower operating costs and accelerate digital transformation.
"The measures are intended to ease financial pressure during the early stages of operation for self-employed businesses," the State Administration for Market Regulation said.
Recently released by the SAMR, the action plan calls on platform companies to offer concessions to self-employed businesses newly joining their services and reasonably reduce commissions, revenue-sharing charges, membership fees and costs for technical, information and marketing services.
"Self-employed businesses are the most flexible and differentiated part of a platform's supply base," said Zhang Hongyun, president of research at Beijing-based Minsheng Think Tank. "They meet long-tail demand that standardized brand-name products cannot cover, from handicrafts and local specialties to personalized services and neighborhood retail."
Supporting these businesses and improving their ability to operate online would make platform ecosystems broader and more diverse, Zhang added.
