The Impact Of Personal Trust On Entrepreneurship

China has experienced the institutional and developmental transition simultaneously since the Reform and Opening policy.The fourth wave of development and evolution of entrepreneurial activity in China meets a comprehensive innovation era.At this point,the micro level of trust plays an important role on entrepreneurship.The paper uses Chinese General Social Survey(CGSS)data of the year 2010,the human gifts spending as proxy variable of interpersonal trust,to explore the effect of trust on entrepreneurship.The results suggest that trust has significant effects on entrepreneur,on average,the spending experiences one percent increase,then personal entrepreneurship probability will be increased by about 0.5%.More importantly,when matching different situations,trust still exert a positive effect on entrepreneurship.In general,in low unemployment rate situation,personal entrepreneurship probability will be raised by about 4.9% based on interpersonal trust;while in the low degree of marketization situation,the entrepreneurship probability will be increased by about 4.8%.Since the study of social trust and economic development is an important area of research in the future,the research suggests that it is vital for the government to frame a better trust instrumental environment for cultivate the entrepreneurship,and create a sound employment environment,which also responses to the policy needs.