Does venture capital foster entrepreneurship in an emerging market?

摘要

The relationship between entrepreneurship and venture capital (VC) in an emerging and immature market is a hot research topic, since entrepreneurship is an important factor in enhancing the competitiveness of enterprises and is regarded as a main driving force of the economy, especially for emerging and immature markets like China. By following the theoretical framework established by Gu, Qian, and Lu (2018), we analyze the effect of VC for an immature market by conducting empirical research using data of Chinese listed firms. Considering the possible endogeneity problem, since the enterprises selected by VC may initially have strong innovation ability, we apply the Propensity Score Matching method to eliminate this sample selection bias and use regression for matched samples and Inverse Probability Weighted Regression to further verify the test results. The results show that VC fosters Innovation Entrepreneurship, but the promotion of business entrepreneurship is not significant.