More than seven million one-person businesses were launched in China during 2025, representing a roughly 42% jump from the previous year, according to state-media figures cited by The Wall Street Journal. The surge reflects how artificial intelligence tools are enabling solo founders to handle tasks that traditionally required entire startup teams, from coding and customer service to marketing and design. The count covers businesses across sectors and doesn't isolate AI-focused startups, but the trend is particularly pronounced in technology hubs like Hangzhou and Shenzhen, where infrastructure, funding, and supply chains are making it easier for individuals to operate like small companies.
A Honghub survey revealed that three-quarters of one-person company founders lacked any technical background, yet they're using AI to code, communicate with customers, produce marketing materials, and manage administrative tasks. Honghub, a Hangzhou community serving solo entrepreneurs, currently supports more than 50 one-person companies, with many receiving startup funding of up to $50,000. Hangzhou's Shangcheng district has pledged office space and nearly $150 million toward projects designed to attract solo operators. Shenzhen offers broader support through its startup ecosystem: Startup Genome reported the city hosts over 2,500 registered venture capital firms controlling an estimated $290 billion in assets, alongside a $630 million subsidy program targeting AI and robotics startups and $68 million in annual vouchers to offset model-training expenses.
The Wall Street Journal noted that founders are tapping inexpensive open-source Chinese AI models alongside the country's dense manufacturing supply chains, while cities like Hangzhou and Shenzhen provide funding, workspace, and computing resources. One example highlighted was Haoyu Liu, who deployed AI to design an application, handle administrative duties, and generate marketing content before shifting to an AI game project. The report observed that while AI allows one person to cover roles that would normally demand multiple hires, founders still face the same fundamental challenges around product demand and revenue generation.
The economics remain challenging despite lower barriers to entry. Honghub's survey of 1,500 one-person companies discovered that more than half produced less than $1,000 monthly. TideFlow, a sleep and meditation app created by Wu Songyun, attracted about 1,000 users but secured only around 35 paying customers and continued losing money. "It's hard to actually get orders and business revenue," Shanghai-based investor Bob Chen told the Journal, noting that many solo companies were creating products similar to existing offerings and lacked long-term plans. The report argues that for channel companies across the Asia-Pacific region, the opportunity centers less on selling enterprise-sized technology stacks and more on helping small AI-enabled businesses reach the scale where they can grow, since these founders may still need cloud infrastructure, cybersecurity, payments, compliance support, model access, hardware suppliers, and distribution channels even when they're not hiring larger technical or marketing teams. For regional vendors, managed service providers, and distributors, these solo founders could become customers for affordable cloud, security, and other services that scale with their businesses, though their limited budgets and uncertain revenue make it premature to assume they'll purchase like traditional startup customers. The infrastructure advantages China offers solo founders—including access to inexpensive models, government subsidies, and concentrated supply chains—may prove difficult to replicate in other markets, raising questions about whether channel partners elsewhere can tap into similar demand or if this remains a uniquely Chinese phenomenon. Betting on volume over deal size could pay off if even a fraction of these millions of solo ventures find traction, but partners will need patience and portfolio thinking rather than expecting quick enterprise wins from any single founder.