Study On The Influence Of Entrepreneurship On Economic Growth Based On The Perspective Of Financial Development

Among many factors that lead to economic growth, entrepreneurship is veryimportant. With the policies to encourage venture and innovation, China’sentrepreneurship is increasingly active. At the same time, economic growth isimpossible without the financial services, if the financial system is more perfect,transaction costs will be less, resources allocation will be more rational, it will be alsoaccompanied by a change in entrepreneurship. Study on the influence ofentrepreneurship on economic growth based on perspective of financial developmentcan help us understand the mechanism between entrepreneurship and economicgrowth, understand the role finance plays in this mechanism; it can also help us knowwhat kind of financial model is conducive to enhancing the effect of entrepreneurshipto economic growth, so make reasonable financial and economic policies.In order to have a more comprehensive study of entrepreneurship, in this paper,entrepreneurship is subdivided into enterprising spirit and innovation spirit. Bycomparing the data, this paper finds enterprising spirit and innovation spirit isbecoming more and more active in all regions, but they still show significant regionaldifferences, the entrepreneurship index in eastern region is higher than that in otherareas. There are also significant regional differences in the data of finance, the bankcredit scale and capital market scale is larger in eastern region than that in other areas.In order to analyze the entrepreneurship more thoroughly, firstly, this papersummarizes the micro activities of enterprises from the angle of enterprising andinnovation, the micro activities will cause social effects such as knowledge spillovers,technological progress, effective allocation of resources and the improvement of theeconomic efficiency, all thus propel the economy forward. In this process, the financeplays an important role in alleviating credit constraints, sharing risk and screeningentrepreneurship, affects the interaction process of entrepreneurship and economicgrowth. In the empirical analysis, this paper applies FGLS method to test the paneldata of different regions, confirms the effects of entrepreneurship on economic growth;then tests the mechanism of entrepreneurship and economic growth by the influence of financial development, gets the conclusion: bank credit can strengthen the role ofenterprising spirit in eastern and middle region; the advantage of capital market beganto appear in the East, by the influence of stock market, the power of entrepreneurialactivities in the economic growth has been enhanced; the function of financialefficiency is poor.Finally, this paper puts forward a series of recommendations: we should continueto promote the steady growth of the bank credit scale; implement different monetarypolicy in the West; implement the credit management concept of reducing ownershipdiscrimination; continue to expand the capital market in the eastern region; balanceallocation of capital.