A Study On Entrepreneurial Institutional Environment Of China Cities

Based on the questionnaires of China's cities investigation, the author gave anentrepreneurial environment framework which was different from the GEM (GlobalEntrepreneurship Monitor) model, and then used it to evaluate the entrepreneurialinstitutional environment in these cities. This research involved 142 samples, andeach has 77 variables. These samples were obtained by face-to-face interview withprofessionals in all kinds of areas. When the factor analysis was done and somevariables were excluded, we found that the results coincide with Kostova's threefactor model of country institutional profile. That is to say, the three factor model isapplicable for different regions within China.There were two purposes for this research. One was to develop theentrepreneurial institutional environment model for China cities and compare it toKostova's .country institutional profile for verification;the other one was to evaluateChina's institutional environment using this model, and gave some suggestions.Entrepreneurial institutional framework inspected institutional dimension,cognitive dimension and normative dimension. These three dimensions reflectgovernment support, individual capability to start a business, and social recognitiontoward entrepreneurship. We should start from government, individuals and socialmembers if we want to improve the entrepreneurial environment. What thegovernment should do is to improve the policies, design government program forsmall firms and popularize entrepreneurial educations. Individuals should improvecapabilities of management, opportunity recognition and resource planning;individuals impose great influence on the decision made by the entrepreneur, or theentrepreneurial strategy decision that the business owners would make. Improvementof government policies and individual capabilities is easy to operate, while the socialattitude change toward entrepreneurial activities is a long term process.