Research On The Impact Of Entrepreneurs' Work Experience In The System On The External Financing Of Private Enterprise

Since the establishment of the market economy system in China’s reform and opening up,private enterprises have rapidly developed into important microeconomic entities in the market economy,playing an irreplaceable role in expanding employment and promoting economic growth.However,despite their significant economic achievements,private enterprises still face many challenges in their development,particularly difficulties in obtaining financing,which limits their growth potential.How to improve the external financing capabilities of private enterprises and unleash the vitality of the private economy has always been a matter of great concern.In recent years,with the proposal of "mass entrepreneurship and innovation",a large number of members within the Danwei system in China have left their institutional positions and actively participated in market construction,achieving good results.As a special group,members within the Danwei system possess a unique work experience that gives them strong policy sensitivity and interpersonal skills.Therefore,when individuals within the system leave to start a business,can their work experience within the system help alleviate financing constraints for their companies? Previous research has mainly focused on the impact of the work experience of executives in listed companies on corporate operations,with few studies exploring the unique group of private entrepreneurs and their work experience,particularly in terms of its impact on enterprise financing.Based on this,this paper explores the impact mechanism of entrepreneurial work experience within the Danwei system on external financing for private enterprises from the perspective of imprinting theory,in order to provide reference for private enterprises to alleviate financing constraints.Based on imprinting theory,this paper constructs a theoretical model with entrepreneurs’ Danwei system work experience as the independent variable,private enterprises’ external financing as the dependent variable,and the degree of industry monopoly and the degree of marketisation as the moderating variables on the basis of sorting out relevant literature and concepts.In order to test the validity of the model and hypotheses,this paper uses the data from the 2012,2014 and 2016 Chinese private enterprise surveys as the sample source,and firstly conducts descriptive and correlation analyses on the collected sample data to obtain the relationships and characteristics between the variables;secondly,uses the Stata 17 software to conduct multiple regression analysis,group analysis and robustness tests on the sample data using the fixed effects model The paper also discusses the issue of endogeneity in order to avoid self-selection bias.Finally,in a further analysis,the paper explores the impact of institutional work experience on firms’ gearing and financing coverage,as well as the main channels through which institutional work experience exerts its resource acquisition effect.The findings show that:(1)entrepreneurs’ work experience within the Danwei has a positive impact on the external financing of private enterprises,with work experience in Party and government agencies and state-owned enterprises being the main channels through which entrepreneurs’ work experience within the system plays a role in resource acquisition.(2)the degree of marketization will weaken the positive impact of entrepreneurs’ intra-institutional work experience on the external financing of private enterprises.(3)the degree of industry monopoly strengthens the positive impact of entrepreneurs’ institutional work experience on the external financing of private enterprises.This study has certain theoretical and practical implications.On the theoretical side,it enriches the research on the content of entrepreneurs’ professional experience in private enterprises’ financing decisions and explores the boundaries of the application of the effect of political relations in different institutional environments.In practical aspects,it provides new ideas for private enterprises to select and hire outstanding talents and optimise human resources allocation.