Research On The Impact Of Urbanization On Rate Of Entrepreneurship

Entrepreneurship and new-type urbanization are two popular trends at present.They are not isolated phenomenon,and ample evidence shows that they are closely related with each other.Urbanization provides push-pull efforts for entrepreneurship,but also brings a certain resistance.However,the influence of urbanization on entrepreneurship has not been paid enough attention at present.From the view of quantity,in the field of regional entrepreneurship,although overseas scholars has focused on discussing the influence factor of the rate of entrepreneurship which measures the quantity of entrepreneurship,but urbanization was only regarded as control variable mentioned in models.Because present research on regional entrepreneurship mainly comes from the European and American developed country,which have already entered into the later development stage of urbanization.However,China is still at the rapid development stage of urbanization and need to pay more attention and reflection on urbanization.In China,the research focus on regional entrepreneurship is still on the aspect of macroeconomic effects,especially on the influence of entrepreneurship to employment and economic increase.Although some studies began to pay attention on the influence factor of rate of entrepreneurship,the attention on urbanization is not enough.So the explaination on our rate of entrepreneurship is not perfect.At present,the reality reason we should pay more attention on rate of entrepreneurship is: our rate of entrepreneurship is low and increasing but not persistence such as US and Europe.Myebe urbanization is an important reason: compared with developed countries,our rate of entrepreneurship is low but increase rapidly,which is suitable for our urbanization,corresponding to this,the persistence urbanization in developed countries is suitable for its rate of entrepreneurship.In this background,this paper focuses on the relationship between population urbanization and the rate of entrepreneurship and mainly studies the following questions: 1.What are our entrepreneurship situations? 2.How population urbanization affects rate of entrepreneurship? 3.What are the influences of population urbanization on rate of entrepreneurship? 4.How to increase the rate of entrepreneurship from the perspective of population urbanization? Based on above questions,this paper conducted the following research from theoretical and empirical aspects.Theoretically,the concept and measurement of entrepreneurship and rate of entrepreneurship has been defined based on literature review and analysis.Through relative hypothesis of simplified new economic geography model,the paper make a mathematical deduction of the effect of population urbanization on rate of entrepreneurship and analyzed the mechanism of how population urbanization acts on rate of entrepreneurship from population aggregation,firm agglomeration,population flow and social enterprise based on the theory of Agglomeration,labor market weakness and social enterprise.Empirically,this paper accounts the rate of entrepreneurship in our country based on law of labor market,summarized the present situation of entrepreneurial activities and clarified the present situation of entrepreneurship in our country through comparison and analysis.This paper verified the effect of population urbanization by using panel data processing method of econometrics based on relative data collected from 31 provinces(autonomous region and municipality)from 1997-2015.It verified the effect of population urbanization on rate of entrepreneurship,rate of opportunity entrepreneurship and rate of necessity entrepreneurship.Based on theoretical and empirical analysis,this paper proposed some suggestions for promoting entrepreneurship from the perspective of population urbanization.Through theoretical and empirical research,this paper mainly draws the following four conclusions:Firstly,as far as the present situation of entrepreneurial activities in our country,entrepreneurship policy and environment has been gradually perfected,the orientation of entrepreneurship has a significant shift,that’s,entrepreneurship is no longer just a replacement and supplement of employment,but a engine for sustained economic development.At the same time,entrepreneurial activities in our country are active and increase rapidly with no phenomenon of entrepreneurship persistence which appeared in developed countries,but the rate of entrepreneurship are still very low and lagged far behind developed countries.In addition,rate of necessity entrepreneurship is higher than opportunity entrepreneurship in our country,the regional difference of entrepreneurial rate are obvious,and this difference is showing a trend of increase.Secondly,The effect of population urbanization on rate of entrepreneurship mainly comes from the following four aspects.Firstly,from the perspective of population aggregation,population urbanization brings about population aggregation,which increases the urban demand and makes the demands more diversified,thus increases the demand for entrepreneurship.Population aggregation also increases the supply of potential entrepreneurs,reduces the labor cost of hiring for entrepreneurs.At the same time,the aggregation of population from different backgrounds makes the region more creative,and the opportunity of entrepreneurship will be increased with the ascension of population urbanization and the knowledge spillover.In addition,population aggregation make the interaction between people more frequent,opportunities for entrepreneurship are more likely to be recognized and sensed.Secondly,from the perspective of firm agglomeration,industrial agglomeration brought about by population urbanization not only reduces the entrepreneurial cost of production and service,but also reduces the cost of transaction for entrepreneurship.With the lowering of costs,industrial agglomeration cultivates and develops more potential entrepreneurs,and increases the probability of success for entrepreneurship.Thirdly,from the perspective of population flow,population flow which accompanies the population urbanization also promotes entrepreneurship.On the one hand,the initiative floating population has more entrepreneurial traits which give them an advantage for entrepreneurship;on the other hand,the passive floating population will be forced to take the simplest way for entrepreneurship,that is,self-employment,in order to adjust to city life.Lastly,from the perspective of social enterprises,on the one hand,social enterprises which arise to solve the negative effect of population urbanization,as a special form of entrepreneurship,increase the rate of entrepreneurship;on the other hand,social enterprises create good environment by solving the social problems brought by population urbanization,which is the indirect effect of social enterprise on entrepreneurship.Thirdly,Population urbanization has significant positive effects on the rate of entrepreneurship and the effect of urbanization away from home is bigger than local urbanization in our country.Specifically,the marginal effect of population urbanization on rate of entrepreneurship is an inverse U-shape,which shows that the regional entrepreneurship rate will be rapidly increased with the increase of population urbanization,and when the rate of population urbanization increases to a certain degree,regional entrepreneurship rate are still increasing,but the speed will slow down to zero until there appears an inflection point.According to statistics collected in this paper,the inflection point appears when the variation of population urbanization reaches 2.7.However,in 527 samples,only ten reached this inflection point,so it can be neglected.So,overall,the marginal effect of population urbanization on rate of entrepreneurship is positive,which means the increase of urbanization rate brings about the increase of entrepreneurship rate.At the same time,the empirical results of classified studies show that population urbanization has a significant positive effect on rate of necessity entrepreneurship,but its effect on rate of opportunity entrepreneurship is less obvious.For opportunity entrepreneurship,innovation is more important.In addition,the mechanism of population agglomeration and firm agglomeration and population turn-over is significant,and the effect of urbanization away from home on rate of entrepreneurship is bigger than local urbanization.Lastly,there are mainly four approaches to increase the rate of entrepreneurship at present from the perspective of population urbanization.Firstly is to promote entrepreneurship by increasing the rate of population urbanization in low-rate regions.The quality of urbanization is very important,but this does not mean that we do not care about the rate of urbanization.In the process of increasing the rate of population urbanization,industry is the foundation as well the key.At the same time,we should encourage and support initiative urbanization not passive urbanization.Secondly,one of the acceleration effect population urbanization has on entrepreneurship is that population urbanization provides a huge potential entrepreneurs.But quite a few among these potential entrepreneurs are less active.Present policy pays more attention to active and passive entrepreneurs,and ignores the huge number of less-active entrepreneurs.So,the policy should pay more attention to less-active entrepreneurs and increase their awareness and willingness.Thirdly,from the perspective of population flow,the institutional barrier for the rural population into the city should be removed and encourage the population flow across towns in the case of keeping the rate of population urbanization.Inside the region,carry out feature urbanization construction and create individuated town types are feasible proposals.Lastly is to accelerate entrepreneurship by accelerate the development of social enterprise.In this regards,we can publicize and promote social enterprise concept through various approaches,create a good legal environment for social enterprise development,and issue relative preferential policies and measures by refering to international experiences.In general,this paper systematically discussed the relationship between population urbanization and rate of entrepreneurship,enriching the research frameworks of mechanism of population urbanization influencing rate of entrepreneurship.There may be contributions mainly embodied in four aspects: Firstly,put forward research proposition about the entrepreneurship effects of urbanization and its Theoretical and practical basis,which benefited to explain growth of the rate of entrepreneurship and phenomenon of entrepreneurship persistence;Secondly,analyzed the mechanism of how population urbanization acts on rate of entrepreneurship from population aggregation,firm agglomeration,population flow and social enterprise,which expanded the theoretical framework of the impact of population urbanization on rate of entrepreneurship;Thirdly,the object of study is not developed country,this paper count the rate of entrepreneurship in China and verified the relationship between population urbanization and rate of entrepreneurship;Lastly,put forword some specific suggestions for entrepreneurship based on the mechanism of population urbanization on rate of entrepreneurship.