Over the past decade, although China's Internet industry has been keeping rapid development, however, the relevant laws and rules lag behind. Because of economic restructuring, aged tendency of population, industrial integration, and the gloomy employment of college students, it is urgent that China make a new paint for undergraduates create their new adventure under cyberspace. Nonetheless, implicit cost of online entrepreneurship, lagging entrepreneurship education and training, inflexible financial innovation, the influence of online credit environment and rules, abusive and inappropriate Internet regulations, are baffling Chinese undergraduates establishing their online start-ups. It is very crucial to optimize network entrepreneurial environment for these small websites and e-shops. With the era of web2.0 coming, subject and object is keeping evolution in cyberspace, entrepreneurial environment is faced with many new variables. In order to better the surrounding for entrepreneurs, government should work together with banks, portals, intermediary, traditional enterprises, small and medium entrepreneurs in case incompatible regulation poses a serious risk to undergraduate-based online start-ups. In the light of this goal, Chinese government should help third-party electronic commerce(EC) platforms build a new rule, which can promote effective competition for all kinds of communities in web2.0 ecosystem through more humanistic networks regulations. Universities ought to richen their entrepreneurial curricula system and construct a modern logistic support system for student start-ups online. It is also indispensable that intermediaries exert their functions during incubating undergraduate-based small business.