"Starting a Company Alone"... AI Boom Fuels Rise of One

Young People in China Run Solo Businesses Using AI One-Person Startups Emerge as an Alternative Amid Youth Unemployment Over 7 Million Launched, But Monetization Remains Challenging

The number of young people in China running their own companies alone using artificial intelligence (AI) is on the rise. Exhausted by long working hours, fierce competition, and a difficult job market, many young people are resigning from companies to start their own businesses. In particular, leveraging AI allows them to handle various tasks—ranging from coding and customer service to product promotion—on their own, thereby lowering the barrier to starting a one-person business.

According to the Wall Street Journal (WSJ), Wu Songyun (age 35), who worked in international trade in Chengdu, China, suffered from chronic stress due to long working hours and a heavy workload. He often had trouble sleeping. In 2024, he quit his job and created an application called 'TideFlow,' which tracks sleep patterns. Wu said, "The work pressure was overwhelming," and added, "Things are much better now."

However, 'TideFlow' has yet to deliver significant results. While there are about 1,000 users, only about 35 are paid subscribers, so the business reportedly operates at a loss every month.

Like in Wu's case, there are quite a few young entrepreneurs in China running businesses on their own. Last year, more than 7 million one-person businesses were newly established in China, an increase of about 42% compared to 2024.

Behind the rise in solo entrepreneurship lies China's youth unemployment crisis. According to the WSJ, for China's Gen Z and Millennials, starting a business can often be closer to a necessity than a choice. Some began one-person businesses after being laid off from big tech companies, while others chose entrepreneurship to escape the cutthroat corporate culture.

Amid a tough job market for young people, the Chinese government is also supporting one-person startups. In response to employment concerns, local governments are providing entrepreneurs with housing and office space, as well as vouchers that allow for affordable use of AI. In technology hubs such as Hangzhou and Shenzhen, hundreds of government-supported small-scale incubation centers have emerged.

Guo Shan, a partner at Hutong Research, a Shanghai-based consulting firm, said, "There are growing concerns that AI could eliminate jobs," adding, "(One-person companies) can provide employment opportunities."

Citizens are moving on a street in Nanjing Road, Shanghai, China. Photo by TASS Yonhap News Agency

However, turning a startup into a profitable business is not easy. According to a survey conducted by 'HongHub,' a solo entrepreneur community in Hangzhou, of 1,500 one-person businesses, more than half earned less than $1,000 (approximately 1.4 million won) per month.

Haoyu Liu (age 29) also launched a solo business using AI but faced challenges in monetization. After working as a software engineer at an e-commerce company in New York, Liu returned to China last year to create an astrology application. He handled everything himself—app design, administrative work, and marketing—using AI, but shut down the business after several months and shifted focus to developing an AI game application.

The WSJ reported that these one-person businesses are not a 'magic bullet' for solving China's youth unemployment crisis. Some entrepreneurs, like Liu, change their business models multiple times, and many struggle to secure investment and customers. As a result, some founders aim to sustain themselves by keeping their businesses small rather than seeking to scale up.

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