Research On Effectiveness Of Internal Control Of Growing Entrepreneurial Enterprise

Entrepreneurship plays an irreplaceable role in promoting economic development.It is of important theoretical and practical significance to study entrepreneurship due to the high risk high failure rate of entrepreneurship.However,the high failure rate is often attributed to the high risk faced by start-ups.Previous studies showed that the internal control system for risk prevention has been developing and perfecting in recent years,but most of the studies on the five elements of internal control proposed by coso focused on single element,so that the specific action paths of the five elements need to be further clarified.Base on this circumstances,this paper aimed to reveal the interaction mechanism of the factors on the effectiveness of internal control.Based on the thought of internal control and the framework model of risk management,this paper regards risk assessment as independent variable,control activity as mediating variables,supervising factors as the adjusting variable and the effectiveness of internal control as the dependent variable to bring them into the same analytical framework,constituting the theoretical model of this study.On this basis,research hypotheses are proposed one by one by reading a large number of literatures to reveal the relationship among variables and make a scientific and reasonable explanation of the interaction path of internal control elements in entrepreneurial management activities.In order to verify the hypothesis of this study,effective data of 413 growing start-ups in Jiangsu,Zhejiang and Shanghai was collected by means of questionnaires.The results show that risk assessment has a direct impact on the effectiveness of internal control,and the better the risk assessment is,the better the effectiveness of internal control is,risk assessment has a significant positive impact on control activities,and control activities have a significant positive impact on the effectiveness of internal control.In addition,the control activity system plays a role between the risk assessment and the effectiveness of internal control.Based on the fact that risk management perspective regards the control environment as the background of internal control,this paper confirms the main line of internal control,namely risk assessment-control activities-the effectiveness of internal control.The conclusion complements and explains the gaps in the existing research.From a practical point of view,this study provides some guidance to start-up companies on how to construct a system of internal control basic rules,and provides some reference for promoting the growth of entrepreneurship.