Open Access Journal Article

The role of business environment optimization on entrepreneurship enhancement

by Nannan Wang a,* orcid ,  Dengfeng Cui a orcid ,  Chuanzhen Geng b orcid  and  Zefan Xia c
a
School of Economics and Management, Shihezi University, Shihezi, China
b
Rotman Business School, University of Toronto, Mississauga, Canada
c
LSK business school, The Hong Kong university of Science and Technology, Hong Kong, China
*
Author to whom correspondence should be addressed.
JEA  2022 1(2):13; https://doi.org/10.58567/jea01020005
Received: 15 October 2022 / Accepted: 29 November 2022 / Published Online: 19 December 2022
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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;
Copyright: © 2022 by Wang, Cui, Geng and Xia. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Wang, N.; Cui, D.; Geng, C.; Xia, Z. The role of business environment optimization on entrepreneurship enhancement. Journal of Economic Analysis, 2022, 1, 13. https://doi.org/10.58567/jea01020005
AMA Style
Wang N, Cui D, Geng C, Xia Z. The role of business environment optimization on entrepreneurship enhancement. Journal of Economic Analysis; 2022, 1(2):13. https://doi.org/10.58567/jea01020005
Chicago/Turabian Style
Wang, Nannan; Cui, Dengfeng; Geng, Chuanzhen; Xia, Zefan 2022. "The role of business environment optimization on entrepreneurship enhancement" Journal of Economic Analysis 1, no.2:13. https://doi.org/10.58567/jea01020005
APA style
Wang, N., Cui, D., Geng, C., & Xia, Z. (2022). The role of business environment optimization on entrepreneurship enhancement. Journal of Economic Analysis, 1(2), 13. https://doi.org/10.58567/jea01020005

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