A Study On New Venture Creation Of SMEs

In the 30 years of reform and opening in China, SMEs goes very fast by venture, which is playing more and more vital role in aspects of promoting economy, increasing the employment, driving innovation, industry midwifery and becomes an important force to promote the national economy and the social development as well as the construction of harmonious society. Study on the venture rule is with no doubt significant to enrich the SMEs venture theory, guide entrepreneurship practice, and construct harmonious society. Based on the review of research on SMEs entrepreneurship, this article discovered the following several questions which are necessary to be solved: why dose the individual selected to be entrepreneur? Namely, What influence entrepreneurial intention. How the new entrepreneurs start a venture? In another word, how does the new entrepreneur recognize entrepreneurial opportunity? What is the result of new venture? Namely, what are the main factors of the venture performance? Regarding these three questions, this article takes the influence factors as the breakthrough point to find the reasons, process and result of new venture creation using theories of management, economics, sociology, psychology and so on.Firstly, this essay analyzes the present venture characteristics of Chinese SMEs with statistical data and questionnaires data, which provides a practical background to this study.Secondly, this essay builds a theory model of initial venture on the base of the former related studies and theories, which provides a logical structure to this study.Thirdly, this essay makes exploratory factor analysis and confirmatory factor analysis on the essential characteristics of initial entrepreneurs to discuss the dimensionality of entrepreneurship.Fourthly, this essay makes a demonstrational test to the influencing factors and mechanism of the entrepreneurial intention with efficient questionnaires and binary logistic model answering "for what" of the venturers.This essay makes another demonstrational test to the influencing factors and mechanism of telling entrepreneurial opportunities with structural equation model(SEM), answering "how to venture" of the entrepreneurs. This essay makes a comprehensive analysis on the influencing factors and mechanism of the venture performance with structural equation model, answering "what is the venture result" of the entrepreneurs.At last, the essay makes a conclusion about the issues of this essay. This essay has four conclusions as following:1. There are four dimensionalities of entrepreneurship, including the inner locus of control, creativity, responsibility and success motive,which is the the most important predictor of entrepreneurial success.The inner locus of control and venture spirit are positively related each other, and the entrepreneur has higher inner locus of control than the non-entrepreneur.; it is very much related to moral sentiment, sensibility and principle, and the venture spirit normally include responsibility; the innovation is one of the dimensionalities of entrepreneurship because entrepreneurship is actually innovative and its "creative destruction" breaks down the past economic system. Compared with big enterprises, the frequency and significance of SMEs are not very much different, which means that enterprise scale is not very much related to innovation. This part can also explain for the significance of the success motive to innovation behavior and of the venture motive to venture behavior and success.2. Entrepreneurial intention is the premise of new venture creation. To generate business, the individual must have a strong entrepreneurial intended.There are kinds of factors influencing the entrepreneurial intention. Among individual factors, the inner locus of control and sex are the biggest factors; the entrepreneurship and success motive are second; education and entrepreneurial intention are negatively related, which means the more education, the low entrepreneurial intention; age and job experiences are positive, but not significant. Another part is environment, in which, the venture culture in unformed institution and social principle are biggest; business environment, market opening degree, business opportunities are positive to entrepreneurial intention.3. To identify business opportunities is the key of new venture creation. The individual factors have more influence to identification of business opportunities than opportunities character. The factors influencing entrepreneurial opportunity are mainly including entrepreneurship alert, which is directly influencing factor; the social relation net is the biggest indirect factor; totally speaking, previous knowledge is the biggest, and social-network is second, then entrepreneurship alert, creativity and optimization are following.4. This study has a new reorganization of the trait theory effect to entrepreneurship research. Even there are comments and doubt to the trait theory in the early entrepreneurship study, but this study still argues that the trait of the entrepreneurs can have important effects to venture performance by some other medium variables. This conclusion means that trait test lends itself to tell if the entrepreneur can create and operate the enterprise which is high potential.