Social Capital,Corporate Finance And Entrepreneurship

In recent years,as the constraints of Chinese environment are enhancing and demographic dividend is disappearing,the traditional investment-drive economic growth mode will not sustain,and Chinese economy gradually entered in a new normal.In this situation,Chinese central government try to improve ‘mass entrepreneurship and innovation' to stimulate Chinese economy to transfer to innovation-drive model,providing new engine to economic growth and crossing the middle-income trap.It is a common knowledge that social capital has positive influence on entrepreneurial activities,but relative studies in a macro level are missing.This article researches the relationship between social capital and entrepreneurship in a macro level.This thesis use SYS-GMM to test the Chinese panel data from 2002 to 2014,and testify that social capital has positive influence on regional entrepreneurship.The entrepreneurship increase by 0.477% if cognitive social capital increase by 1%,and increase by 0.078% if structural social capital increase by 1%,indicating that cognitive social capital is more influential to entrepreneurship than structural social capital is.Then,this essay chooses corporate finance as mediating variable.The article estimate the amount of regional informal finance from 2002 to 2014,and researches the mediating effect of corporate finance through venture capital and informal finance.The result indicates that in both processes that cognitive social capital and structural social capital affect entrepreneurship,venture capital has mediating effect,which accounts for 9.32% and 16.50% total effect separately.Informal finance also has mediating effect accounting for 38.02% and 16.03% total effect separately.Therefore,in the place where has more cognitive social capital,the company should consider informal finance as the prior financing channel,while in the place where has more structural social capital,the company should consider venture capital as the prior financing channel.In the end,this thesis provides suggestions such as increasing social capital,promoting venture capital's development and controlling informal finance,to improve provincial entrepreneurship.