In recent years, the Chinese government has implemented several policies to increase its national entrepreneurship rate. One of the main policies is to fund colleges to organize entrepreneurship competitions to encourage college students to start their own business ventures. The winners of such competitions will receive prizes and startup fund to support their new business venture. We conducted the current grounded theory research to investigate the condition of such competitions in China. We found that many college entrepreneurship competitions are not well-organized, and they lack an adequate post-competition supervision system. In addition, we also found that such competitions has attracted college students who are not interested in creating their own business ventures to compete in such events in pursuit of their personal gains.