Enterprise Ground Zero in China

Abstract:     
The paper claims that the analysis of the private business sector needs to concentrate on entrepreneurship. Based on fieldwork the paper proceeds by describing how Chinese entrepreneurs perceive the (economic) problems whose solutions pre-determine the economic performance of new firms. Entrepreneurship takes the form of institution building by which the high transaction costs can be mitigated and the value of assets and contracts be protected. The empirical research identified corporate governance, incentive contracts, local autonomy and networking as the crucial hybrids for mobilising investment and limiting moral hazard.

Number of Pages in PDF File: 41

Keywords: Entrepreneurship, Chinese Business Sector, Local Autonomy, Networking

JEL Classification: M, M13, O32, O57, P3, P48, P57, Z13

working papers series