Entrepreneurship in China's Peripheral Regions

Entrepreneurship has risen to a national development strategy to drive China’s economic transition. Previous regional studies of Chinese entrepreneurship have focused mostly on metropolitan areas or cities. This research contributes to the literature by understanding entrepreneurship in Chinese peripheral regions and meanwhile considering sectoral variations. Based on records of 9.26 million newly registered enterprises, we present the spatial–temporal dynamics of startup activities in China’s peripheral counties from 2004 to 2016. We further conduct panel regressions to explore the geographically bounded influencing factors of total and sectoral entrepreneurship in these peripheral regions. We provide evidence on the positive impacts of macro-economic conditions, industry specialization, county size, and patent knowledge on general entrepreneurship. These findings to some extent vary by sector. We also find positive spillover effects from the nearby large metropolitan center on peripheral entrepreneurship. These findings shed light on the characteristics of sectoral entrepreneurial ecosystems and entrepreneurship policy in peripheral regions.