An Empirical Study On Growth Path Of Chinese New Ventures

Since the middle of the 1970s, a host of factors such as the advancement of technology, the economic globalization, the slack of institution, labor supply, the diversity of demands and the promotion of highly dicey ones that are pushed forward by the above-mentioned diathesis, however, jointly turn the industry structure from highly concentrative trend into primary one. At the same time, the pattern of economic development changes a lot now. As what we have known, the ratio of entrepreneurship has seen a sharp rise in most western countries, and this kind of entrepreneurship is playing a pivotal role in economic vitality of various countries and regions. The role of Entrepreneurship in accelerating economic growth is long-range and potential, "Entrepreneurship is the key driving force to the overall economic system" as the famous economist Schumpeter said, in 1942.The source of economic growth system is entrepreneurship, which makes a great contribution to innovation. The growth of new burgeoning industries, advancement of regional economic developments, all of them are crucial to the rate of economic growth for a country or region. In this time and age, the Chinese government tends to think highly of entrepreneurship, they hold the opinion that entrepreneurship is a good way to promoting employment and changing the mode of economic growth effectively. New burgeoning entrepreneurial activities gradually come to be "a new driving power" to make the Chinese economy constantly, promptly and soundly. Since the opening reform, entrepreneurship in our country has accumulated a lot of experience and achieved effect of scale during these 30 years. Especially in the in-built center of technological entrepreneurship, the development of entrepreneurship has been the driving source of economic growth. The trial of high-tech entrepreneurial activities in some developed countries demonstrate that the speed of technology accumulation is a bit slower. Once technology accumulation receive economies of scale and begin to play a more or less role in economic advancement, its length and strength would be much stronger than capital when compared with capital accumulation.The investigation of this dissertation is based on the rise of entrepreneurial economy, and then spread out by taking a close look at the process of innovative enterprise. This dissertation also describe how certain Chinese representative enterprises grow from germination to flourish by involving growth "track" in the study of newly innovative enterprise growth process, and by referring to the geometric definition of "track". What is more, it makes full use of System Dynamic methods by regarding entrepreneurial companies as the process of system dynamic evolution. On the basis of description of developed companies "trace", it simulates the possibility of innovative companies "trace", thus making up for the lack of the "Chinese background" in describing the growth of microcosmic unit—enterprise, on the other, it also divert the business management method of entrepreneur from "sensibility" field into "logos" one, which, however, offers entrepreneurs a module reference in development of enterprise.This dissertation integrates the theory of the growth of the firm, the theory of enterprise, the entrepreneurial theory, the theory of evolution, strategic management theory, and entrepreneurial management theory on the basis of Chinese background to be a new theory template for enterprises. This sound theory template strives from entrepreneurs, who start a business by opportunities discernment and excavation in our opinion, that is to say, the preceding life cycle of entrepreneurship is the direct result of inchoate companies set up by entrepreneurs. As the appearance of new companies, how a tangible company comes up with the highly competitive market and what kind of market to come into for great decisions, are also important topics about what an enterprise is in the theory of enterprise. Newly innovative enterprises come into the life track from the beginning of life cycle. Definitely, this kind of growth is more than a dynamic definition which stands for the development of enterprise as time goes on. Setting up an enterprise and developing an enterprise is a process, and the theory of evolution equates the development of an enterprise with the evolution of biologic species, hence, we adopt this opinion in the essay. Strategic orientations of newly innovative enterprises are always thought to be intangible, whereas some scholars think that newly innovative enterprises or small companies have no strategies, so the study of strategy management should focus much more on mature enterprises or big companies. This research think that newly innovative enterprises should have its own strategy orientation, strategy layout and strategy design, so that the entrepreneurs or lead team of newly innovative enterprises can discern the competitive advantages and value chain of enterprises definitely. While strategic management theory is the basic theory in description of the newly innovative enterprises growth, the entrepreneurial management theory rests largely on management theory and strategic management theory. For those newly innovative enterprises, the validity of entrepreneurial management is the foundational and inner needs of an enterprise.newly innovative enterprises on the basis of fundamental theory template. By taking Youwang Electron, Suning Appliance,Alibaba, and Hubei Guochuang Hi-tech Material these four corporations as examples, making use of questionnaires, interviews, and experts’ marking methods, we finally make empirical analysis of the whole advancement process of these four corporations. The studies show that there are some vital and critical factors in the growth of Chinese newly innovative enterprise. The vital factors lie in promoting enterprise growth, including learning, market opportunity, industry circumstance etc. On the other hand, critical factors are the exhibition of the leap of development period, whereas the qualitative changes of factors such as learning, industry circumstance and capitals lead to the transition of enterprise growth. Based on the analysis of the key point and critical point of enterprise growth, the essay describes the process of these four corporations. Then, it describes the state of establishment and advancement of Chinese newly innovative enterprises by making a on-the-spot investigation of twenty newly innovative enterprises in Shanghai. Referring to the growth of certain representative enterprise, we analyze the sameness and differences of Chinese typical enterprises and newly innovative enterprises. It turns out that the sameness lies in factors such as business opportunities, social network, learning, business capitals and so on, whereas the differences lie in factors such as the surroundings, human resources, financing environment.In the next step, we adopt the methods of System Dynamic Studies in simulation to realize Chinese newly innovative enterprises. The simulation model is set up on the basis of the key factors and critical factors of these case enterprises, extracting learning, technology, opportunities as the main variants of the simulation experiment. Detailed steps are as follows:First of all, we studied the growing simulation experiment to simulate the possible development condition in the future by changing the parameter settings. In combination of simulated operational results, we finally found out that the performance of microenterprises lead by enterprising team was the best. Meanwhile, an enterprise might own the maximum knowledgable employees by learning. After a certain period, when we studied the growth of enterprises from the viewpoint of employees quantity, the scale expansion of microenterprises lead by enterprising team then came to a peak in the four patterns. Secondly, based on factors such as technology and opportunities, we constructed the simulation experiment of newly innovative enterprises. When taking a closer look at the result of simulation operation, newly innovative enterprises came into the field of mature industry the performance was much higher than into new burgeoning industry. But if the newly innovative enterprises focused largely on technology, the performance of coming into the new burgeoning industry was better than into the mature industry. For those entrepreneurial activities starting up with capital, the future growth condition of coming into mature industry was better than into new industry.Finally, by comparing the results of case study and simulation experiment, the essay sums up that the typical enterprises take a predictive and leading part in Chinese newly innovative enterprises. The pattern of typical enterprises is critical for Chinese newly innovative enterprises. Changes in surroundings influenced by Chinese complicated backgrounds make the growth of entrepreneurial activities and newly innovative enterprises more idiosyncratic and stylish. In conclusion, newly innovative enterprises should make up more reasonable and rational decisions and choices, whereas the entrepreneurial policies and institutional systems concerning about supporting the growth of newly innovative enterprises also call for much more attention about the real and true needs in enterprise level.