The Impact Of China's Business Environment On Entrepreneurs

The world economy in the post-financial crisis era is full of uncertainty,which shows an increasingly deepening trend,China's economic development facing new opportunities and new challenges.Socialism with Chinese characteristics has crossed the threshold into a new era,China's economic also entered the new era.Under this background,the traditional pattern is not sustainable due to excessively dependent on traditional factors,especially tax incentives to promote economic development,and there is an urgent need to promote the transformation of preferential policies into innovation-driven development for China,and this process should involve institutional and institutional innovations,and highlight the shaping of business environment.It's of vital importance to grasp the new situation of international and domestic development,foster a world-class business environment,thus to reduce the institutional transaction costs of enterprises,stimulate the vitality of market participants,release reform dividends and entrepreneurial dividends,and prosper the industrial economy.The business environment is crucial,not only in terms of international comparison and macroeconomic operations,but also reflects in urban,regional and industrial aspects,reflects in the activities and behaviors of microeconomic entities.It has become an important approach for the government to achieve the development of "able-governance" to "well-governance" and"durable-governance".Do more as the above have a prominent meaning for China.Follow this understanding,we focuses on the business environment issues.We investigate the impact of business environment on entrepreneurs and enterprises by four aspects,namely business reform,financial development,policy uncertainty and property protection at the city level.Based on property protection,the four dimensions are interconnected and together constitute the main content of the business environment,which would affect the activities and behaviors of the microeconomic entities profoundly.From different perspectives,these dimensions depict the continuous optimization process of China's business environment.The core conclusion in our research:Flexible enterprise due to flexible market,creats and optimizes the business environment is of great significance for optimizing the allocation of entrepreneurial activities,fostering and promoting outstanding entrepreneurship.We found that typical business reforms like the establishment of administrative service center can reduce the institutional transaction costs of micro-enterprises,thereby reduce the burden of taxes and fees,and make entrepreneurs more qualified to focus on internal governance.The financial development,especially the financial supply represented by the establishment of city commercial banks,could alleviate the situation of entrepreneurs' "running for financing",optimize the activities of entrepreneurs,thus to make it possible for entrepreneurs to pay more attention to the internal governance.We firstly verified the impact of policy uncertainty expressed by the change of core city officials on the allocation of entrepreneurial activities,and discussed the mediation effect of enterprise restructuring experience and the political status of entrepreneurs.The entrepreneurial production activities become more "stickiness" and decline smaller due to enterprise restructuring experience and the political status of entrepreneurs.Further analysis shows,the former exists in the indirect production activities of entrepreneurs,while the latter has a significant impact on the direct production activities and net production activities of entrepreneurs.Property protection could stabilize entrepreneurial expectations and optimize the allocation of entrepreneurial activities.Better property protection will affect entrepreneurs' individual decision-making and internal governance of enterprises,and promote the modernization process of enterprises;Better property protection can alleviate the phenomenon of "Approval-oriented public relations" for entrepreneurs and enterprises,and reduce the burden of taxes and fees;Better property protection can improve the financing environment,and promote the "regularization" of financing structure for enterprises.This study also investigates the heterogeneity of the above four dimensions.This study focuses on the micro-impact of the business environment for China,some valuable innovations may exist in our study,namely research perspective,research content,data structure,and policy implications.Based on the empirical results,we proposes a couple of policy implications of China's business reform,business environment evaluation indicator system,reform and opening up patterns,political-business relationship,and regional business environment ecology in new era.