A Study On The Interacting Effect Mechanism Of Institutional Environment And Entrepreneurial Behaviors

Entrepreneurship is the driving force to our country's economic reform which has lasted for over twenty years and it is also one of the main sources for our economic development. Now we're still in transition economy, and the condition for market economic is not that perfect, which provide entrepreneurship for some opportunities as well as obstacles.Based on the relative research of entrepreneurs and entrepreneurship, the essay puts forward an analytical framework on how institutional environment interacts with entrepreneurial behaviors. And the institutional environment involves three aspects, which are social norms, cultural cognitive factors and the regulative structure on social payoffs—incentive mechanism.On the basis of theoretical analysis, the essay explains some distinctive entrepreneurial behaviors in our transition economy. First of all, it analyzes district discrepancy on entrepreneurial behaviors which caused by different informal institutions with an example of rapid develop of private economy in Zhejiang province. Secondly, as respect to formal institutions, social norms may evolve at different speed. They conflicts with each other and develops harmony. We exemplify this issue on discussing incentive mechanism with stock shares in state-owned enterprises and there are three main driving forces to stimulate the progress, which are entrepreneurs themselves, local government and central government. And we explain the so-called "59-year old" phenomenon and fierce dispute on the MBO. Thirdly, up-down formal institution evolvement has a positive effect on entrepreneurial behaviors, which can be terrified by the evolvement of non-public owned economies.At last, form above three institutional aspects, the essay puts forward some advice on how to stimulate entrepreneurial behaviors and then to promote economic development.