| Entrepreneurship originates from opportunity which is the starting point of a business and every year millions of entrepreneurs start up a company globally. Many nations have strong private sectors and these sectors stimulate and encourage individuals to chase opportunities and improve their social value and the whole economic conditions. The development of entrepreneurial theory has established the following theories that when people pursue to be an entrepreneur these behaviors will motivate them to create more firms and these firms generate firm cultures in the development process. Theorists of economic development and growth, such as Schumpeter (1934) and Romer (1986, 1994) have already emphasized the significance of entrepreneurial spirit because as a form of knowledge it fosters the prosperity of specific region. Besides, researches show that entrepreneurial activities often create new entrepreneurial opportunities and thus reduce unemployment and increase the economic development and growth of one region. So, the establishment of new firms is a key factor of specific regional development and growth.Researches on the entrepreneurial level of developed countries focus on analyzing samples of entrepreneurs, especially on region or economic sector and these researches establish conditions which foster entrepreneurship or analyze the bank interest rate when metropolitan generates entrepreneurial cluster. However, some of the work proceeds slowly and only build a framework. Although conceptual framework can decide what kind of conditions can push and pull individuals to start up a company to a certain extent, but still few empirical researches support these summarized models. So, although some literatures suggest from a theoretical perspective that the formation of new firms can foster economic development and growth in a specific region, in empirical researches, due to the survey difficulties , gaps still remain between theories and empirical resesarches.Some researches have already suggested a series of statistical documents related to global entrepreneurship. According to GEM research report,Reynolds and et.al(1994) thought that 6.9 individuals started up a new firm in each 100 firms from 1986 to 1988. Dennis(1997) estimated that in 1995 3.5 million new firms were created which involved about 4.8 million people.Zacharakis and et.al suggested that in 1999 there were about 8.4 individuals had intentions to start up new firm in each 100 adults. This data increased to 11.9 in 2003. According to Small Business Administration of America, 600 thousand new firms started up each year from 1989 to 2003; however, 550 thousand bankrupted each year. In 2004, 7.38 million new firms in America started to run a business which represented that compared to the same index in 1998 6.42% was promoted .These data demonstrated that entrepreneurial spirit in USA was very positive and active from which we can see global entrepreneurial activities are developing like a raging fire.From the above facts that entrepreneurship fosters economic development we can see that due to great role of entrepreneurship global trend of entrepreneurship has emerged. Thus, at the current stage of China, we should devote our best efforts to foster development of entrepreneurship and take regional practical conditions into account according to characteristics of regional economic development and push the development of entrepreneurship and foster regional economic development. Creation of new firms based on regional characteristics makes significant impacts on regional development.So, the aim of this paper focuses on two aspects. Firstly, a conceptual framework is established and various kinds of conditions are analyzed to see what kind of conditions will foster establishment of new firms and how new firms can foster economic development and growth in one region: (a) based on specific regional existing conditions, we will measure the composition of demography and economic factors, the influence of formal entrepreneurial activities on new firm creation and (b) roles of new firm creation on economic development and growth. This paper adopts a framework combined the theoretical framework suggested by Minnitti&Bygrave (1999) and Bygrave&Minnitti (2000). They thought that evaluating personal subjective intention, surrounding communities'social and economic conditions and current entrepreneurial activity level has crucial reference to individual decisions whether to become entrepreneurs. This framework analyzes this framework from macro level. And this model emphasized that spill-over of knowledge and investment on human resource creates opportunities for regional prosperity. Strong entrepreneurial culture can push the development of new firms (Minnitti&Bygrave, 2004)In China, this kind of researches are rare, especially the ones which analyzed relationship between entrepreneurship and regional economic development from regional perspective. Under the call of the central government for rejuvenating North-eastern old industrial base, the economics of North-eastern region has achieved great development, however compared with middle-eastern region, it is still backward. Thus, it is very necessary to research the relationship between entrepreneurship and regional economic development based on sample in this region. And this is also one of the basic goals of topic selection for this paper.The research contents and main conclusion of this paper include:1. Taking new venture creation as the clue throughout the paper, we researched the mediating effects between demographic statistics factor, economic factor, antecedent entrepreneurial activity and economic development and growth. Results showed that on the structural model level, new venture creation mediates the relationship between demographic statistics composition and economic development, new venture creation mediates the relationship between demographic statistics composition and economic growth, new venture creation mediates the relationship between economic factors and economic development, new venture creation mediates the relationship between economic factors and economic growth, new venture creation mediates the relationship between antecedent entrepreneurial activities and economic development, but new venture creation does not mediate the relationship between regional antecedent entrepreneurial activities and economic growth. However on the index level, new venture creation does not mediate the relationship between demographic composition and economic development, new venture creation does not mediate the relationship between demographic composition and economic growth, new venture creation does not mediate the relationship between economic factors and economic development, new venture creation does not mediate the relationship between regional antecedent entrepreneurial activities and economic growth, but new venture creation still mediates the relationship between regional antecedent entrepreneurial activities and economic development. 2. Using hierarchy ordinary least square regression to explore the factors which influence new venture creation, results showed that the availability of skilled workers in a certain region is positively related to new venture creation, demographic natural increase in a certain region is positively related to new venture creation, floating population in a certain region is positively related to new venture creation, maintenance of infrastructure investment level fosters new venture creation, antecedent entrepreneurial activity level is positively related to new venture creation. However, some hypotheses, such as that cultural diversity has curvilinear relationship with new venture creation, per capita income has curvilinear relationship with new venture creation, unemployment rate has curvilinear relationship with new venture creation, rate of poverty has curvilinear relationship with new venture creation , were not supported.3. We studied the impacts of new venture creation on economic development and growth and results showed that new venture creation makes crucial impact on regional economic development and growth.4. Although the aim of this paper is not for the relationship between some variables (such as demographic factors) and economic development and growth, this paper makes some extra conclusions, that skilled labor , demographic natural increase and floating population both make significant impacts on regional economic development and growth, and infrastructure construction and per capita income in economic factors are positively related to economic development and growth.The innovative points of this paper can be summarized to the following statements:1. We initially build a model with two levels to study regional economic development and growth and make an empirical research with data from 30 cities in three provinces in North-eastern region. The former models related to regional economic development and growth mainly focus on single model building, and this paper establishes a model from two levels related to regional economic development and growth, one is structural model( see Figure 3-1), from the perspective of general index , and using time series analysis to research on the relationships among variables ; the other one is a model from sub-index level(see Figure 3-2), mainly decomposing the general index category and researching the impacts of sub-variables on new venture creation and economic development and growth and thus has great innovativeness.2. We initially studied the mediating effects of new venture creation. The former researches all considered new venture creation as dependent variable or took new venture creation as independent variable and studied the impacts of new venture creation on other variables. This paper initially considered new venture creation as a mediating variable and studied the relationships between it and economic development and growth and thus has positive innovativeness. This part is surely a extension and supplementary to the existing entrepreneurial theories and has guidance to new venture creation to some extent.3. We have diversified source of data. The empirical study requires a consistent data source and data measure diameter; otherwise the results will be meaningless. Some of the former researches directly used data from statistical year books and other sources, resulting a powerless conclusion. Although the data source of this paper is from many channels, the measure diameter is consistent and this paper has transformed the non-normal distribution data in the process of data measure and realized the consistence of empirical data. It is also an innovation of method using diversified data to explain the same question.The main contributions of this paper lie in: firstly, this paper creates and tests a model which strengthened the entrepreneurial environment decisive framework suggested by Minnitti and Bygrave in the macro-level and proved that these decisive factors formed a knowledge base which fostered new venture creation. Besides, this model extended the framework suggested by Minnitti and Bygrave and pointed out that new venture creation fostered regional economic development and growth. Secondly, this paper emphasized surveys of entrepreneurial phenomenon on the regional level, especially 30 cities of three provinces of North-east China. Thirdly, the environmental conditions on the macro-level which this paper analyzed can foster the managerial theories and practice. Fourthly, the conclusions of this paper offer strong support fro the former empirical and theoretical literature. Especially, the former statement that"entrepreneurship creates more entrepreneurship"gets empirical support in this paper. Fifthly, this paper offers empirical support for many theories on economic development. On one hand, the empirical results of this paper proved that the spill-over of knowledge can improve the regional production since entrepreneurship creates knowledge which originates from the communication among individuals. This paper supports endogenous growth model. On the other hand, since entrepreneurial activity fosters new venture creation, this paper supports aggregation theory at the same time.
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