Determinants and consequence of entrepreneurship, evidence from China, the UK and Russia

Wang, Chenyang (2021). Determinants and consequence of entrepreneurship, evidence from China, the UK and Russia. University of Birmingham. Ph.D.

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This thesis presents three empirical studies on entrepreneurship. Specifically, the first study investigates liquidity constraints and entrepreneurship in China. The second study examines why hybrid entrepreneurs exist and their effect on full-time self-employment entry in the UK. The third study investigates whether Russian entrepreneurs are optimistic. All studies use micro-level survey data.

Using the 2010, 2012, 2014, and 2016 waves of the China Family Panel Studies, I evaluate the extent to which dynamic transition into entrepreneurship made by individuals is affected by liquidity constraints in China. In addition to analyzing the effect of wealth on entrepreneurial entry, I also use the housing value appreciation acquired by the individual as a proxy for wealth. Additionally, I explore whether wealth plays a more important role on self-employment choices in less financially developed provinces and rural area compared with high financially developed provinces and urban areas respectively. My results are robust to taking the endogeneity of wealth into account.

Using the Harmonized British Household Panel Survey (BHPS) and Understanding Society datasets from the period between 1991 to 2018, I examine hybrid entrepreneurship in the UK for both males and females. After removing the heterogeneity of the individuals in our sample, I find that, for both males and females wishing to set up their own business, financial pressure and the desire for a career change, drive them from employment into hybrid entrepreneurship. Protecting against any risk of uncertainty associated with the primary job is an additional driver for male paid employees. Furthermore, for both males and females, only those hybrid entrepreneurs who wish to establish their own business during their hybrid phase, are more likely to transition into full-time self-employment than workers in full time employment. Additionally, the good performance of the secondary self-employed job will motivate hybrid entrepreneurs to transition into full-time self-employment. However, this phenomenon is only applicable to those female hybrid entrepreneurs who wish to set up their own business in the hybrid phase. Lastly, I do not find that the age of hybrid entrepreneurs plays an important role in driving them into full-time self-employment.

Using the Russian Longitudinal Monitoring Survey round 5 to 27 over the period between 2000 to 2018, I investigate the association between entrepreneurship and optimism. I find that entrepreneurs are more likely to be optimistic than employed workers. Moreover, those who become entrepreneurs are more likely to become more optimistic than those who remain in employment. I do not find a significant association between entrepreneurship and overoptimism.

Type of Work: Thesis (Doctorates > Ph.D.)
Award Type: Doctorates > Ph.D.
Licence: All rights reserved
College/Faculty: Colleges (2008 onwards) > College of Social Sciences
School or Department: Birmingham Business School
Funders: None/not applicable
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HA Statistics


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