A Study On China’s Entrepreneurship System In The Prospective Of Law And Economics

Since Drucker put forward the concept of entrepreneurship economy, it has become the most creative part of modern economy, entrepreneurial innovation is a key element to improve national productivity and comprehensive national strength. In November 2012, the 18th CPC annual congress clearly put forward "We must implement the principle of promoting self-reliant employment, market-regulated employment and government-backed employment and entrepreneurship". This is the first time that our country will encourage inclusion of entrepreneurship into employment policy, also is the important measure of employment priority strategy.In fact, to vigorously promote entrepreneurship, employment by entrepreneurship, has become the main task of all levels of government in China in recent years. In this background, the selection of entrepreneurship system as the research object, in-depth study of entrepreneurship system research, exploration and to give full play to encourage entrepreneurship, entrepreneurial effect, employment by entrepreneurship, have great theoretical and practical significance.This paper chooses the "entrepreneurship system" as the research object, and "entrepreneurship system of historical change" as the clue. Its analysis framework includes such concepts as "institutions", "entrepreneurship system", "cost-benefit" and " demand and supply ". It draws on the experience of foreign entrepreneurship system and the evolution of China’s entrepreneurship system. In the prospective of law economics and new institutional economics, it studies the rule of institutional change, gives in-depth analysis to the cost of China’s entrepreneurship system and supply & demand. From theoretical and empirical point of view, the payer tries to systematically analyze the status of the entrepreneurship system, as well as the problem in the system’s design and mechanism. Finally, the author proposes to improve the entrepreneurship system efficiency and equilibrium of the policy advising, and from the perspective of law and economics tries to provide a framework and institutional advice for analysis and use of improvement of entrepreneurship system.The paper employs normative analysis and empirical analysis methods, and draws on the form of the method of institutional change. It puts cost benefit analysis and balance analysis of supply and demand as the core. Meantime, it uses comparative analysis and historical analysis method for analysis of entrepreneurship system. The author pays attention both to the French application in the entrepreneurship system of macro economics theory, and to specific analysis of the specific entrepreneurship system in micro level, for comprehensive analysis of specific problems of the entrepreneurship system.This article is divided into eight chapters:The first chapter is an introduction of selection of research object background, the theoretical and practical significance, and of research mentality, technical route and possible innovative points as well as defective ones.The second chapter is a review of entrepreneurship system literatures and theoretical analysis of law and economics. From the perspective of research and discipline classification, system arrangement about entrepreneurship system is the mainstream of the research results. According to the progressive relations from the concept of entrepreneurship, the types of entrepreneurship, entrepreneurship institutional environment such as the literature are analyzed, it concludes the future study of entrepreneurship system space. Then it analyzes relevant law and economics theory, with summary of research methods of entrepreneurship theory, institutional change theory, game theory and other relevant academic theory content, so as to furnish a theoretical basis to the law and economics analysis and analysis framework for subsequent research.The third chapter is comparation of typical foreign entrepreneurship system to China’s. It mainly analyzes the United States, Japan and Britain entrepreneurship system, and their respective advantages and disadvantages of policy system, and draws lessons from their experience. This may be a beneficiary reference to improve our country entrepreneurship system.The fourth chapter is historical analysis of China’s entrepreneurship system. It reviews important stages in entrepreneurial institutional change and the development track divided by establishment of important legal institutions. These may provides experience and enlightenment for the improvement of our country entrepreneurship system.The fifth chapter is the cost-benefit analysis of China’s entrepreneurship system, both from the angles of government and entrepreneurs.From the governmental angle, the article introduces entrepreneurship financial investment index. It defines cost of governmental entrepreneurship based on government agencies involved. For the first time, the academic circle give considerations to cost analysis from the governmental perspective, which is also one of this paper innovation points.From the perspective of entrepreneurs, this chapter elaborated on the analysis of the entrepreneurial process in a variety of cost and its influencing factors in the entrepreneurial process, followed by entrepreneurial regulatory costs, the cost of venture capital financing, venture operating costs and entrepreneurial tax costs. In case of entrepreneurship cost, the paper puts forth some core indicators, and empirically studies entrepreneurship institutions in China.Accordingly, from the aspects of economic and social benefits, the paper gives a brief introduction of benefit of entrepreneurship. It concludes that governmental regulation is the source of flying cost of entrepreneurship.The sixth chapter is the analysis of the supply and demand of entrepreneurship system. It studies the entrepreneurship system supply model, influence factors and the status quo of the supply. On the basis of supply and demand analysis, it points out the institutional imbalance is caused by structural imbalance rather than insufficient supply, which is also one of the author’s innovation points. In nature, it differs with mainstream opinion of more entrepreneurship legislation.The seventh chapter is the institutional arrangement of entrepreneurship system improvement. It focuses on the analysis of existing problems, and puts forward some suggestions for improvement targeted from three angles of entrepreneurship system. Thus, it designs the basic framework of China’s entrepreneurship system.The eighth chapter is the conclusion together with advice on follow-on research. This chapter systematically analyzes the core points of the thesis. It expounds the views summarized, which indicated the author’s basic views and ideas to China’s entrepreneurship system. It also points out the deficiencies and the direction for further study.In summary, China’s entrepreneurship system has greatly promoted the process of entrepreneurship and entrepreneurial passion, but still faces some problem. At present, the primary problem faced is how to reduce government regulation, further unleashing people’s entrepreneurial passion, and then reduction of the entrepreneurship costs, achieving balanced system, and then promoting the growth of revenue and efficiency.This paper tries to make innovations in the following aspects:Firstly, the innovation of research perspective. The contemporary studies home and abroad mainly draw on entrepreneurship management or orthodox economics, with emphasis rather on micro levels such as identification of opportunities, environmental elements and entrepreneurship. In the macro level, it is creative to study entrepreneurship system from the perspective of law and economics, through analysis the use of cost-benefit method, as well as supply and demand method. This is a new prospective, also one of the author’s innovations.Secondly, this paper redefines the connotation of entrepreneurship cost, and puts forth some of its core indices. Past study dealt with cost solely from entrepreneurs, rather than from both governmental and entrepreneurs as shown in this paper.For the first time in entrepreneurship studies home and abroad, the author draws on prospective of the government for definition and analysis of the execution cost of entrepreneurship system (entrepreneurial finance expenditure). At the same time, the paper gives an elaborate study in the prospective of entrepreneurs, with introduction of a series of cost index system applicable to different stages of starting a business. Also, this is unprecedented practice.Third, deregulation is the quintessence of entrepreneurship system. Excessive regulation is the source of flying cost of entrepreneurship in China. Institutional imbalance is caused by structural imbalance rather than insufficient supply, which should be duly noted by the authority in case of formulating rules and regulations. Naming, this is an creative point.Fourthly, the paper, for the first time, researches on cost and benefit and equilibrium of supply and demand in the respect of law and economics. Application of the two tools in analysis of immature entrepreneurship institutions is another innovative point in this paper.It should also be noted that there are some deficiencies in the paper, which leaves room for the author’s future research..Employment of the theory of law and economics methodology is insufficient, which needs to be improved in the future research. In fact, the methodology has yet to be mature since its emergence. This paper only utilizes the methodology in analyzing entrepreneurship system. It would be a long time before the theory and methodology be further improved and remedied.The empirical analysis of entrepreneurship system has yet been sufficient. Especially, there are more room for quantitative study of cost and benefit and equilibrium of supply and demand. For example, a set of performance evaluation indices needs to be established, so as to explore the evolution process of China’s entrepreneurship system. In future studies, there should be further research on entrepreneurship system, and its implementation in realities.