The role of business environment optimization on entrepreneurship enhancement

Nannan Wang, Dengfeng Cui, Chuanzhen Geng and Zefan Xia
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Nannan Wang: School of Economics and Management, Shihezi University, Shihezi, China
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

Journal of Economic Analysis, 2022, vol. 1, issue 2, 66-81

Abstract: Entrepreneurs are important actors in economic activities and creators of social wealth. Excellent entrepreneurs contribute their wisdom to the accumulation of social wealth and the promotion of 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 enterprises and promote their sustainable growth. Using data from Chinese A-share listed companies from 2009-2019 as a research sample, the following research conclusions were drawn: (1) A better business environment helps enhance entrepreneurship. (2) A better business environment promotes entrepreneurship by reducing rent-seeking expenses and corporate credit costs. (3) Compared to traditional enterprises, high-tech enterprises are better able to enjoy the benefits brought by business environment optimization and further enhance entrepreneurship. When competition is low, entrepreneurs face lower rent-seeking expenses, which is conducive to stimulating entrepreneurship. The businessenvironment can promote fairness and bring more equal financing opportunities for enterprises, which has a higher impact on entrepreneurship for the group facing higher financing constraints. This study meticulously analyzes the impact ofthebusiness environment on entrepreneurship, providing references for the next steps of optimizing the business environment and enhancing entrepreneurship.

Keywords: Business environment; Rent seeking expenses; Credit cost; Entrepreneurship (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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