IDEAS home Printed from https://ideas.repec.org/a/bpj/erjour/v12y2022i4p559-595n3.html
   My bibliography  Save this article

Entrepreneurial Ecosystems, New Business Formation, and Scale-up Activity: Evidence from 286 Chinese Cities

Author

Listed:
  • Zhang Yi

    (Xian Jiaotong University Jinhe Center for Economic Research, Xian, 710049, China)

  • Roelfsema Hein

    (Utrecht University School of Economics, Utrecht, Utrecht, Netherlands)

Abstract

This paper examines the effects of the quality of entrepreneurial ecosystems on new business formation and scale-up activity in China at the city-industry level. Accounting for only large and fast-growing firms, we focus on productive entrepreneurship which creates economic wealth. Based on a newly constructed panel dataset for 29 manufacturing industries and 286 prefecture-level cities of China during the period 1998–2009, we find that entrepreneurial ecosystem components, including access to finance, knowledge, marketization, local market demand, and entrepreneurial culture, are important determinants in explaining the differences in entrepreneurial activity across city-industry clusters and over time. Analysing a dynamic period in China’s industrialization with large regional variation in economic development, we show that the relative importance of the ecosystem components in shaping entrepreneurial activity changes over time when regions develop. In addition, we show that interaction between the ecosystem components – indicating system strength – has additional power in explaining new business formation and scale-up activity.

Suggested Citation

  • Zhang Yi & Roelfsema Hein, 2022. "Entrepreneurial Ecosystems, New Business Formation, and Scale-up Activity: Evidence from 286 Chinese Cities," Entrepreneurship Research Journal, De Gruyter, vol. 12(4), pages 559-595, October.
    • Handle: RePEc:bpj:erjour:v:12:y:2022:i:4:p:559-595:n:3
    DOI: 10.1515/erj-2019-0265
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/erj-2019-0265
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/erj-2019-0265?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    entrepreneurial ecosystems; new firm formation; business scale-up;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:erjour:v:12:y:2022:i:4:p:559-595:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.