Study On The Relation Between The "State-owned Entrepreneurs" And The Performance Of State-owned Enterprises

Entrepreneurs are the soul of enterprises, and important sources of power thatpromote the economic and social developments. Indeed entrepreneurs are scarceeconomic resource, too. The existence of entrepreneurs can effectively improve theenterprise management level and economic benefits, create wealth, and alsoundertake many social responsibilities. In recent years, China has already emerged anumber of entrepreneurs in both private and state-owned enterprises, who makesgreat contribution to the national economy. State-owned enterprises are solid basis ofthe state-owned department and a leading force in the national economy. Dostate-owned entrepreneurs exist? What is the state of the connotation of entrepreneurand the interaction mechanism? What is the relationship between the state-ownedentrepreneurs and the performance of their enterprises? These problems are very important for the development of China’s state-owned enterprises, which also play ankey role in the construction of the national independent innovation.Beginning with the state-owned entrepreneurs, this paper studies what relationbetween stated-owned entrepreneurs and the innovation and financial performance oftheir enterprises are, in the method of theoretical and empirical analysis. First of all,the paper reviews the foreign and domestic literature of entrepreneur theory andenterprise performance theories, in order to summarize and make comments to them.Secondly, the article researches on the state-owned entrepreneurs’ concept,characteristic and functions in three dimensions that are entrepreneurship, capacity ofentrepreneurs and entrepreneur behaviors. Thirdly, the author establishes twoequations in order to test the relations between state-owned entrepreneurs’ innovativeactivities and performances of state-owned enterprises. The empirical results showthat, there are entrepreneurs in state-owned enterprises; there is a positive correlationbetween entrepreneurs’ innovative activity and innovation performance; and thequadratic term of entrepreneurs’ innovative activities has a positive U-typerelationship with the financial performance. Finally, the author promotes the conclusions, and puts forward suggestions on how to cultivate excellent state-ownedentrepreneurs.