Research On Government Behaviors For Promoting Entrepreneurial Activities

Since reform and opening up 30 years ago, our country has experienced several entrepreneurial tides: the development of township enterprises in early 1980s, the booming of privately-owned business in early 1990s, and recent tendency of 'start business by each possible person' vigorously encouraged by government with the purpose of diversifying Entrepreneurial players. From past tides, it is found that most of them happen in important transition time. Thus, volatile environment often provides more opportunities for Entrepreneurial activities. The boom of entrepreneurial activities comes at special times. Active entrepreneurial activities will promote economic and social development, and deepen our reform and opening-up, entrench market system as basic economic mechanism.However, in China, most entrepreneurial activities are struggling for survival instead of gaining profits. And some starters are rather speculative. Comparing with Entrepreneurial tides in developed countries, ours does not play its due role in promoting economic and social development. How to further encourage Entrepreneurial activities and create favorable entrepreneurial environment should be carefully considered.To address the issue, the thesis reviews the history of our entrepreneurial tide and analyzes the relation between our entrepreneurial activities and government behaviors, with the conclusion that government behavior is very important to entrepreneurial environment and performance. The thesis analyzes the theory of how government behaviors promote entrepreneurial business. And then through empirical study on the relation between government behavior, entrepreneurial environment and entrepreneurial performance, the thesis talks about general view on entrepreneurial effects. Finally, the thesis provides suggestions on how our government can promote entrepreneurial business. Specifically speaking, the thesis is composed of 8 parts:'Introductory Remarks': it talks about why the author chooses the topics for research and research method thereof. It has also introduced main content of the thesis.'Chapter 1: Review of our entrepreneurial activities': from the review of entrepreneurial activities, the author tries to comb the relation between entrepreneurial activities and government.'Chapter 2: the theory on how government behaviors promote entrepreneurial businesses. ' The author tries to explain related concepts such as entrepreneurial activities, entrepreneurial activity, Entrepreneurial effect and government behavior, with the purpose to analyze how government behaviors promote entrepreneurial businesses from micro-perspective and also macro-perspective.'Chapter 3: discussion from micro-perspective: theory construction'. The author talks about theory from micro-perspective and also main factors involved. Then it has also made empirical study thereof.'Chapter 4: discussion from micro-perspective: data and conclusion'. It includes questionnaire, data collection and the analysis conclusion by using related software. Related discussion on the possible results is also done.'Chapter 5: discussion from macro-perspective: the analysis on entrepreneurial effects': about what entrepreneurial effect is.'Chapter 6: the suggestions on how to improve government behaviors with the purpose of promote entrepreneurial businesses': it talks about the principles of how government promotes entrepreneurial activities and the general policy thereof. The author provides different suggestions under different entrepreneurial environment.'Chapter 7: innovation and things to be improved'. It talks about conclusion, innovation points, things to be improved and also future research in this field.Main conclusion:1. After reviewing the history, it is found that our entrepreneurial business grows with the development of market economic system. It has experienced both ups and downs. The entrepreneurial activities keeps up almost the same pace with government behaviors especially policy environment. Thus, in China, government plays dominant role in Entrepreneurial business development. Due to historic and realistic reasons, our entrepreneurial environment needs to be improved. The entrepreneurial business is still underdeveloped which is mainly reflected by low-level entrepreneurial business, inadequate entrepreneurial effect. In current China, government still plays dominant role.2. The government can promote entrepreneurial business through two ways.From micro-perspective, government can, through improving entrepreneurialenvironment, lower cost of starting a business, thus enhancing business' performance, survival rate and increase the number of newly-established business. Then the Entrepreneurial business will be rather thriving. It follows the route of 'government behavior-entrepreneurial environment-entrepreneurial performance-activities-effect'. From macro-perspective, government can, through improving environment, directly impact active participation into entrepreneurial business and also its working results. It follows the route of 'government behavior-entrepreneurial environment-activities-effects'.The two routes converges at 'entrepreneurial activities' and will finally vigorously encourage entrepreneurial activities and create entrepreneurial effects. With the realization of economic growth, more job opportunities and industrial structure adjustment, the government behaviors finally attain their own goal.3. The thesis, by using 'government behavior-entrepreneurial environment-performance' theory model to study how our government behaviors promote entrepreneurial activities, concludes:(1) Government behaviors (including protective behavior, productive behavior, adjustive behavior) will obviously influence commercial entrepreneurial environment while subtly impact public entrepreneurial environment. (2) Productive government behaviors, adjustive behaviors will obviously influence entrepreneurial performance, while protective government behaviors do little to entrepreneurial performance. (3) Commercial entrepreneurial environment will do positively to entrepreneurial performance. (4) Public entrepreneurial environment will do little to entrepreneurial performance.It shows that our entrepreneurial activities bear clear features of transition economy in developing countries, which is mainly reflected by that, on one hand, government behaviors obviously influence entrepreneurial environment, and on the other, the Entrepreneurial environment is much more volatile and complex than that in developed countries. Particularly, the high volatility will influence entrepreneurial behaviors and the working results.4. To attain entrepreneurial effects is the driving force for the government to promote entrepreneurial activities.The entrepreneurial effects refer to the effect and results the entrepreneurial business will bring, including economic growth, more job opportunities, and industry structure adjustment. These are what government is striving for. Thus, the purpose for the government to promote entrepreneurial activity is to achieve entrepreneurial effect.5. The suggestions include:While drafting policy to encourage people to start their own business, the government shall both consider both systematic overview over long term and different features of different phases. The government shall choose clear-target-oriented policy tools compatible with social and culture features. The government shall also cultivate entrepreneurial spirit and coordinate government behaviors with market mechanism. The government shall establish specialized agency and improve policy system. Specifically speaking, the government shall take following steps to improve entrepreneurial environment:(1) On policy entrepreneurial environment, the government shall, in accordance with the 'entrepreneurship Promotion Law ', improve protective behaviors; shall improve productive behaviors with transforming government functions as the focus, and shall improve adjustive behaviors with the reform of taxation system as the focus. (2) on commercial entrepreneurial environment, the government shall, with the focus on improving favorable financing system for entrepreneurs, intensify credit guarantee system and loosen financial control, expand direct financing channel, optimize entrepreneurial investment structure, improve capital market for business starters and explore the possibility of stock-holding program, with the purpose of creating favorable commercial environment and lower business cost. (3) on public entrepreneurial environment, the government shall expedite visible infrastructure construction, and cultivate favorable hardware. Meanwhile, the government shall implement overall education to encourage people to start their own business.The innovation points are as follows:1. Distinguish 'Entrepreneurial behavior' and 'Entrepreneurial activities'. The mechanism on how government promotes entrepreneurial business is studied from both micro-perspective and macro-perspective. From current study, the focus is mainly on how business performance is influenced by entrepreneurial environment (i.e. from micro-perspective). Few studies are about how macro-entrepreneurial activities are interacting with entrepreneurial environment and entrepreneurial effects. The thesis has made comprehensive study on both micro-study and macro-study, with the purpose to enrich the theory thereof.2. From micro-perspective, the thesis constructs 'government behavior-entrepreneurial environment-entrepreneurial performance' model which considers entrepreneurial environment as intermediary variable. Comparing with the traditional 'environment-strategy-performance' model, the thesis attaches more importance to the influence of Entrepreneurial environment on Entrepreneurial performance, which is more compatible with our volatile environment during transition economy period. Meanwhile, the thesis has made empirical study with data to prove the feasibility of the model. These will be inspiring for the future study.3. From macro-perspective, the thesis redefines the entrepreneurial effect, which is now considered together with government goal. It will lay foundation for the study on how government behaviors improve entrepreneurial environment and promote entrepreneurial activities. Currently, our country is devoted to constructing entrepreneurship-oriented economy. The study on entrepreneurial effect will provide theoretical support to how government behaviors promote entrepreneurial business.4. The thesis horizontally reviews the development of our entrepreneurial activities and summarizes main features thereof. Current articles in this field seldom touch the comprehensive overview of our entrepreneurial business. The history review will provide guidance on future government behaviors.