An empirical study of factors influencing entrepreneurship using fuzzy logic: Based on provincial panel data

Abstract

At present, the development of China’s economy is inseparable from the promotion of innovation and entrepreneurship. However, there are huge differences in the level of entrepreneurship in different regions, so it is urgent to analyze the influencing factors of entrepreneurship. This paper uses panel data of 31 provinces in 2008–2017 to test the impact of urban unemployment rate, regional financial development level, market scale, agglomeration effect, entrepreneurial cost, scientific and technological innovation level, government support and other factors on entrepreneurial level. To solve the issue of factors influencing the enterprises, we utilised an effective way of fuzzy logic along with decision estimation strategy. The empirical results show that regional financial development level, agglomeration effect, technological innovation ability, government support and so on have a positive role in promoting the level of entrepreneurship, while urban unemployment rate has no significant effect on the level of entrepreneurship. Based on the empirical conclusion, the paper puts forward some policy suggestions.

Keywords

Entrepreneurship level influencing factors regional difference panel data fuzzy logic

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