Research on the Effect of Entrepreneurship on Diversification and Capital Structure Strategy in Small and Medium-Sized Enterprises

摘要

Many scholars have thought that entrepreneurship has an important effect on improving enterprise competitive position and obtaining enterprise competitive advantage. Then, what effect does the entrepreneurship has on diversification and capital structure strategy? In this paper, entrepreneurship is classified into radical entrepreneurship and gradual entrepreneurship, enterprise performance into the overall financial performance and new product performance. On the basis of questionnaire survey, by exploratory factor analysis and structural equation modeling, the results show that the radical entrepreneurship is helpful to SMEs realizing diversification, however, the gradual entrepreneurship is helpful to specialized operation; Whether radical entrepreneurship or gradual entrepreneurship has little effect on capital structure strategy in SMEs; Diversification indirectly affects the overall financial performance through affecting the new product performance.