Profiling Chinese entrepreneurs

Abstract

Entrepreneurship has played a crucial role in China's economic growth. However, research has predominantly focused on listed firms and state-owned enterprises, overlooking the vast number of small and medium enterprises (SMEs) due to data paucity. Limited knowledge exists on the characteristics of entrepreneurs, particularly those in the SME sector. This study aims to address this knowledge gap by profiling two types of Chinese entrepreneurs: self-employed and incorporated private business owners. The analysis utilizes data from two large surveys of entrepreneurs and salaried workers conducted in the same six provinces of China (N = 8948, comprising 3218 self-employed entrepreneurs, 1338 incorporated entrepreneurs, and 4392 salaried workers). The comparison reveals that self-employed entrepreneurs share more similarities with incorporated entrepreneurs than salaried workers in terms of key personality traits. Both groups of entrepreneurs exhibit higher risk tolerance, greater trust in others, and stronger interpersonal skills compared to their salaried counterparts. On the other hand, self-employed entrepreneurs align more closely with salaried workers in terms of human capital and family background than with incorporated entrepreneurs. The findings suggest that equalizing opportunities, particularly in education, could pave the way for self-employed entrepreneurs to transition into incorporated entrepreneurship.