Research Of Entrepreneurship Activity Mechanism Based On System Dynamic

Entrepreneurial activity can not only improve employment, but also the engine ofeconomic development.Therefore, research on entrepreneurship has been widespreadconcerned by academia, international organizations and governments.They have made someimportant research on it. However, the existing research on entrepreneurship haveproblems:they focus on static factors, dynamic relationship and mechanism between thefactors always relatively weak; lack of a clear logic activities among the various factors.The paper based on the system theory, carried out simulation model by the followsteps.First through summarizing of previous studies to identify the factors that affectentrepreneurial activity, finding the feedback relations between the causal factors andestablish the conceptual framework of the mechanism.Second,on the basis of causal loopdiagram, using Vensim software to create a system dynamics model, and applied in China.Third,for there are many difficult to identify the paremeters(due to the small sample size andlacking of experience and comparability of data).To estimate the parameters of the model,gray system theory approach and econometric methods should be used.Forth,let the modelreasonable through the system its own checks.And last, Through above test for the SD model,according to the policy levers point finding by sensitivity analysis and the reality policypoints,continuously adjust the model parameters (change policy),using of simulation model,compared entrepreneurial activities under different policies,and made the SD model “policylaboratories”,then complete the policy optimization, simulation and prediction of such a trial.System dynamics method is applied to study of entrepreneurial mechanism, creating a newperspective for quantitative research and enrich the application scope of system dynamics.The results show that entrepreneurial skill is the "system leverage points "of businessactivities and the key variables to raise the level of entrepreneurial performance. According tothe simulation results, business activity index will reach34.2until2020.