On The Growth Ability Of Entrepreneurial Ventures

Entrepreneurial ventures are one of the important driving factors behind economic growth, which function as significant means of employment. It is worth mentioning that American enterprises have played a significant role in American economic growth, which have become a sparkling spot of American economy and many of which have grown into renowned enterprises. Since the reform and opening-up of China, Chinese enterprises have also played a crucial part in Chinese economic growth and social development. However, there is still some gap between the comprehensive ability of Chinese enterprises and enterprises in United States and other developed countries. First of all, the life expectancy of the enterprises in China is comparatively short. The enterprises always close up in face of market shocks. Second, the rates of enterprises in China growing into corporate are relatively low. Most enterprises have lost the ability of continuous development after the survival phase and remained at a relatively low level of development. All in all, the enterprises in China are comparatively lack of the comprehensive growth ability, which has become one of the huge issues limiting the growth of enterprises in China. This study chooses the entrepreneurial ability of the ventures which have been founded since the reform and opening-up of China, especially those under the current background as the subject of research in an aim to provide instructive research results as the guidance to the development of our entrepreneurial ventures in China.The researches of entrepreneurship have been conducted for over10years. However, due to the complicated features and behaviors of entrepreneurial ventures, the researches demonstrate the attribute of diversity. Different schools emerged have conducted different researches on types, resources, motive, environment of entrepreneurship and features of entrepreneurs. This dissertation attempts to study the enterprises from the perspective of entrepreneurial ability. By integrating different factors into this perspective, this thesis attempts to build a new research system of entrepreneurship with entrepreneurial ability as the core element.Firstly, this dissertation reviews the enterprise development theory and the main theories of entrepreneurship, theory of dynamic capability, which compose the theoretical basis of the dissertation. On the basis of the literature review and profound study on entrepreneurial activities, the concept of development of entrepreneurial ventures has been summarized which indicates the essential attributes of development of entrepreneurial ventures. Namely, the process of development of entrepreneurial ventures is integration of improvement of inner structure and function with external scale expansion. Associated with the new orientation of current development of entrepreneurial ventures, a profound discussion is conducted on the contradictions in entrepreneurial ventures’development process, including the contradiction between energy dependence and capability dependence, the contradiction between the current survival ability and future development ability, the contradiction between the entrepreneur’s capability and the comprehensive capacity of the enterprise. By approaching the analysis of contradictions, it has been pointed out that the continuous development of the entrepreneurial ventures depends on the comprehensive growth ability of the entrepreneurial ventures as an organization to a large degree instead of on the capability of the entrepreneur and the resources controlled by the enterprise. Last, based on the enterprise development theory, especially by engaging the life-cycle approach, taking into consideration of development characteristics of modern entrepreneurial ventures, the three phases of development have been proposed, namely establishment phase, survival phase and expansion phase. Meanwhile, further analysis of the operational features of each phase has been made.Based on the dynamic capability theory, the concept of entrepreneurial ventures’growth ability has been proposed. The analytic model of enterprises’growth ability has been raised that the system of growth ability of enterprises are composed of survival ability, market-share seizing ability and innovation ability. This system is an integrated model of these above three factors, describing the inner force of continuous enterprise growth. Then a profound and detailed analysis has been made on the factors which influence the entrepreneurial ventures’growth ability, deepening the connotation of this concept.After the discussion of component model of entrepreneurial ventures’growth ability, this dissertation explores the cultivation process and source of entrepreneurial ventures’growth ability. The distinctive features of the abilities in different phases have been shown after the detailed analysis of the cultivation of the growth ability in difference phases. The study on mechanism formation of different growth abilities has indicated that survival ability, market-share seizing ability and innovation ability are interrelated and function differently. These three aspects not only cover the inner quality of enterprises, but also cover the interrelationship of enterprises and environment. These three aspects generalize the whole process of enterprise growth, in which survival ability serves as prerequisite, market-share seizing functions as foundation with constant innovation as the crucial means of growth. On the basis of the detailed research on the different aspects of enterprise growth ability, a conclusion has been drawn that the entrepreneur’s spirit, organization and continuous learning is the crucial source of entrepreneurial ventures’growth abilityBased on the typical case studies of Baidu, Wuxi Sun-tech power company limited, Shaoxing H corporate, Hangzhou S Company and VANCL, which incorporates with the analysis of development process of enterprises, this dissertation substantiates the functions of different growth abilities in enterprise growth. The case studies are chosen especially to represent the distinctive features in types, stages of development and growth abilities of different enterprises. Through the analysis of the typical case studies, it is shown that different abilities are of great significance at different stages of different types of enterprises.In line with the theoretical logical analysis, questionnaire is designed for this study. Through data analysis of the case study with statistical software, the validity and reasonability of the analytic model of entrepreneurial ventures’growth ability have been verified. Through analysis of the factors, the seven factors have been extracted to build up the evaluation function. Through empirical method, several hypothesis proposed by the study have been verified.