A Study On The Relationship Between Entrepreneurial Competence And Entrepreneurial Performance

According to the Report of Global Entrepreneurship Monitor (GEM) in2011,China has entered a fiery state of “full-staff entrepreneurial activity”. Our full-staffentrepreneurial activity index is the highest in the world. However, the survival rate ofthe new ventures is very low. Studies show that, about50%new ventures can onlysurvive for about a year, less than20%can live for three years or more. In total, thesuccessful rate of established enterprise doesn’t exceed5%.Many studies indicate that entrepreneurial competence is the key influentialfactors of entrepreneurial performance，and scholars try to find a breakthrough inimproving the successful rate of established enterprises from the perspective ofentrepreneurial competence. However, the reasons of low survival rate ofentrepreneurial enterprises are various. The report of GEM in2011, showed that theestablished enterprises in china were lack of innovation, and emphasized that areasonable business model is the key factors of the low survival rate of establishedenterprises.Currently, studies on the business model of new ventures in the field ofentrepreneurship are rare, especially the studies on the business model affecting onthe relationship between entrepreneurial competence and entrepreneurial performance.The business model guides the development of entrepreneurial enterprises, is anoperating mechanism for sustaining the profit of enterprises and also the source ofcore competence in enterprises. This study discusses the relationship betweenentrepreneurial competence and entrepreneurial performance form the angle ofbusiness model, it is very meaningful and significant for deepening and improving theentrepreneurial theory and practice.Based on an extensive search and careful review of the related domestic andforeign literatures, this paper comprehensively combs the related studies of businessmodel, entrepreneurial competence and entrepreneurial performance. This study alsoanalyzes the relationship entrepreneurial competence and entrepreneurial performanceform the angle of business model. The entrepreneurial process of SEMs is a dynamicone. Entrepreneurial competence is the key factors of entrepreneurial performance.Successful enterprises usually had a reasonable and innovative business model, itsbusiness model can effectively transform entrepreneurial competence into the corecompetitive advantage, raise survival rate of new ventures, and improve the performance. Therefore, this paper constructs the relationship model of businessmodel, entrepreneurial competence and entrepreneurial performance. The regulatoryrole of the business model between the entrepreneurial competence andentrepreneurial performance is the focus of this study.Jiangsu Province, as a big province in entrepreneurship, perfectedentrepreneurial policy and good entrepreneurial environment，entrepreneurial activityis frequent, many new ventures are representative. According to literature review andexpert’s opinion, this study formulates the business model, entrepreneurialcompetence and entrepreneurial performance scales. This study collects the data from380enterprises in Jiangsu Province by questionnaires, and analyzes the data by Spss19.0. The results show that the entrepreneurial competence and its dimensionssignificantly positive impact on entrepreneurial performance, and the results ofempirical research further verified the regulation role of the business model in therelationship between entrepreneurial competence and entrepreneurial performance.Based on the results of the empirical research, in order to improve the survivalrate of the new ventures and the entrepreneurial performance, this paper proposessome suggestion on entrepreneurs enhance the entrepreneurial competence andchoose business model scientifically and innovative.