The role of business environment optimization on entrepreneurship enhancement

Nannan Wang; Dengfeng Cui; Chuanzhen Geng; Zefan Xia

doi:10.58567/jea01020005

Authors

Nannan Wang School of Economics and Management, Shihezi University, Shihezi, China https://orcid.org/0000-0002-3346-3605
Dengfeng Cui School of Economics and Management, Shihezi University, Shihezi, China
Chuanzhen Geng Rotman Business School, University of Toronto, Mississauga, Canada
Zefan Xia LSK business school, The Hong Kong university of Science and Technology, Hong Kong, China

DOI:

https://doi.org/10.58567/jea01020005

Keywords:

Business environment, Rent seeking expenses, Credit cost, Entrepreneurship

Abstract

Entrepreneurs are important subjects of economic activities and creators of social wealth. Excellent entrepreneurs contribute their wisdom and make contributions to accumulating social wealth and promoting high-quality economic and social development. The business environment is the main manifestation of the soft power of cities and regional economic development, and a better business environment can effectively attract the concentration of enterprises and promote their sustainable growth. Using the data of Chinese A-share listed companies from 2009-2019 as the research sample, the following research conclusions are drawn: (1) Better business environment helps to enhance entrepreneurship. (2) Better business environment promotes entrepreneurship by reducing rent seeking expenses and corporate credit cost. (3) Compared with traditional enterprises, high-tech enterprises are better able to enjoy the dividends brought by business environment optimization and further enhance entrepreneurship. Compared with high market competition, when the competition is low, entrepreneurs face lower rent seeking expenses, which is conducive to stimulating entrepreneurship. Business environment can promote fairness and bring more equal financing opportunities for enterprises, which has higher entrepreneurship for the high financing constraint group spillover effects. This study meticulously further analyzes the impact paths of business environment affecting entrepreneurship, so as to provide references for the next step of optimizing business environment and thus enhancing entrepreneurship.

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