Who are China’s entrepreneurs?

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Controlling for institutional environment, entrepreneurs in China are much more likely to have family members who are entrepreneurs as well as childhood friends who became entrepreneurs, suggesting that social environment plays an important role in entrepreneurship. Entrepreneurs also differ strongly from non-entrepreneurs in their attitudes toward risks and their work-leisure preferences, echoing Schumpeter. Finally, failed entrepreneurs score the worst on aptitude tests, but have the best selfreported performance in school and perceive the business environment as least favorable.

That's the latest from Djankov, Qian, Roland, and Zhuravskaya. More on doing business in China.

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