Research On The Management Labor And Behavior Patterns Of Chinese Private Entrepreneurs

Due to ownership discrimination,the Chinese private-owned enterprises face serious "financing difficulties".Expanding financing channels and improving financing capability are crucial for the innovation and development of private-owned enterprises.The private firms returned to be legal since the reform and opening up policy,which is the important components of the development of the national economy of China.In order to obtain the magic weapon to ensure their long-term sustainable development,private enterprises need to keep innovating in the developing process.However,China's institutional environment is still incomplete,and the lack of property rights protection mechanisms has restricted fair competition among enterprises,increased the company' s operating innovation and development costs,while charitable donation,political status and social acitivities has been used as alternative choices to make up for the deficiency of fornal institutions.After long-term development,entrepreneurs will inevitably participate in rent-seeking activities in order to obtain benefits,which will further exacerbate the imperfection of China' s institutional environment and unfair competition among enterprises.The current system of exchanging government officials and their limits of tenure held by China can form a certain degree of supervision,which greatly reduces the rent-seeking activities of entrepreneurs and provides a more fair and equitable competitive environment for the development of enterprises.In order to obtain more external financing,entrepreneurs will adopt different methods to expand their financing channels and raise the level of financing capacity.This paper firstly employs the survey data,compiled by the private business research group every second year during 2000 to 2012,combining The Marketization Index(Fan et al.,2011)and The Statistical Yearbook of the City,to investigate whether charitable donation and political connection can enhance the external financing capacity.After controlling the characteristics of firms,entrepreneurs and regional economic conditions,the empirical results show that charitable donation and political connection can help obtaining more external financing loans,which greatly ease the "financing difficulties".While the politically connected firms can obtain more external financial resources than the non-politically connected ones if they donate more.What's more,this paper adopts the city level temple numbers as the instrument variable of charitable donation to deal with the potential endogeneity.The regression results after 2SLS with IV are also robust and significant.Based on the empirical analysis,this paper illustrates the effects of charitable donation,political connection on external financing capacity,by controlling the individual characteristics of entrepreneurs and outside development economic environment indices,which provides right direction for the sustainable development of Chinese private enterprises.For a private enterprise,since the entrepreneur's time and business funds are limited,valuable resources,how to weigh the opportunity cost and the rational use of scarce resources is important for business survival,and innovation which can ensure the healthy development of enterprises.Based on the pooled survey datasets of Chinese private enterprises from year 2002 to 2010,this paper analyses how the entrepreneurs,social capital,through allocating the time and business funds,affects the development and innovation of their firms.The most important contribution of this paper is that we add the time allocation of entrepreneurs except fund investment to measure the social capital parts.What's more,we also adopt the two-sided R&D programs measurements,i.e.innovation investments together with patents and new products,and then test the effects on performance.The empirical conclusions of this paper indicate that entrepreneur's social capital,i.e.the unproductive social activities with colleagues,financial institutions,relatives and friends,and government departments,have significant promotion for the R&D programs of Chinese private enterprises during the period of economic transition.However,the political status of entrepreneurs hasn't accelerated the R&D programs,but as part of the social capital of the entrepreneurs,it can also accelerate the firms R&D programs through social activities,which also plays an important part during the significant contribution to firms' profits and performance,In order to illustrate the time redistribution of entrepreneurs affected by the turnover of government officials,this paper adopts the pooled survey datasets of Chinese private enterprises from year 2002 to 2010,together with the robustness checks using social capital costs to analysis this effects.Based on three measurements of policy uncertainty,i.e.whether the official is changing,whether the normal replacement is after the expiration of office,and the source of the new official,the empirical results of this paper indicate that the policy uncertainty brought by the turnover of government officials significantly lower the time for social activities,but have no effect on the time for management.Furthermore,the policy uncertainty plays a significant role on the additional cost for socializing and apportioning.The empirical conclusions of this paper indicate that the policy uncertainty brought by the turnover of government officials do significantly affect the time allocation and fund investments of entrepreneurs in the short run.While in the long run,this kind of government leadership turnovers can create a more fair and equitable space for the development of the private sector,and will be even more favorable for the entire national economy.The research in this paper not only enriches the relevant research on entrepreneur strategic management,but also provides an important reference for the study of entrepreneur's time allocation from the perspective of official turnover.Above all,this article focuses on how private entrepreneurs get rid of the"difficulty of financing" dilemma by adopting informal strategies,and then use them in R&D and innovation projects to maintain the long-term sustainable development of enterprises,and then studies management labor and behavior patterns of entrepreneurs,how will they rationally plan their own time allocation and fund allocation to better maintain and promote the development of their company.The study finds that entrepreneurs often adopt alternative strategies through charitable donations and social capital to cope with the current restrictions on ownership,institutional imperfections and policy uncertainty.Relevant policy suggestions have been put forward for the development of private-owned enterprises,hoping that the government will continue to extend "supportive hand" to the private-owned enterprises,and then firms can establish a good social capital network with government agencies,banks,other financial institutions and their counterparts system,to enhance social trust,reduce transaction costs and solve the information asymmetry problems.The political environment,the legal system,the improvement of credit markets and the development of financial markets can effectively protect the legitimate rights and interests of private enterprises and then growing healthily,which also provide a sound environment and space for the private sector.Moreover,private entrepreneurs should not pay too much attention to the political operation of the external environment.Emphasis should be placed on strengthening their own capabilities,continuously innovating and enhancing their internalities.In addition,external protection by the government and social capital support can enable the private-owned enterprises to develop healthily and rapidly.