An Empirical Research On The Relationship Of The Entrepreneurship And Economic Growth

Since 1980s, entrepreneurship has played a more and more important role in the economic operation and growth and even has been the major drive for economic growth. This is an empirical study which aims to explore the mechanism between China's economic growth and its entrepreneurship development after the reform, while attempting to provide substantial evidence for the mechanism as well.This paper is dedicated to achieve the following goals:Fist, according to the abundant connotations of entrepreneurship,the paper combed the entrepreneurship at different levels and defined the meaning of entrepreneurship.Second, based on reviewing the development of Chinese entrepreneurship, this paper tries to explore the effect of entrepreneurship on economic development in China, and test the relationship between entrepreneurship and economic growth.Third, In view of the differences on the measurement of entrepreneurship, the paper have established the entrepreneurship metric which suit to China and the model of entrepreneurship and economic growth.Last, combining empirical results are given in this paper, the paper provided the policy Suggestions according to China's current economic growth situation. In order to achieve those goals, the paper is arranged in the following format:The first part is introduction. It puts forward the main problem and introduces the background and significance of entrepreneurship .According to describing the relevant situation of Chinese enterprises, research methods was brought.The second part reflects on the findings of entrepreneurship research of various levels, concludes and discusses its development and connections between them so as to lay a solid theoretical foundation for comprehensive study of entrepreneurship. Entrepreneurship only exists in market economic system. "Entrepreneurship" is ability and willing of percepting, creating, and to grasping new opportunity Innovation, taking risks and uncertainties, courage of overcoming the difficult are all the performances of entrepreneurship.Third,this paper overviews the development of entrepreneurship since the establishment of China, especially since China's reform. And there are two main mechanisms of entrepreneurship on economic development. The first one is that based on a certain level of technology, entrepreneur will look for some opportunities to break the equilibrium under the force of entrepreneurship, and this behavior will promote economic development. And the other one is entrepreneur have an incentive to develop new technology to strength itself, and this behavior will promote economic development too.Forth, this paper considers the entrepreneurship in the endogenous economic growth model, and based on the data from 31 province, municipalities and autonomous regions during 2004 to 2009, this paper found there is positive effect of entrepreneurship on economic growth.Based on the results, this paper proposes some advice in the last part. Our government should improve the legal system, capital market to protect and develop entrepreneurship.