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Research on the Decline of the Entrepreneurial Spirit and Its Revive in the Post

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Abstract:This paper anlyzes the construction of China’s current status of entrepreneurship and problems .This paper then anlyzes the reason of causing of entrepreneurship building problems based on the theory of niche in China. On this basis, the paper proposes countermeasures and suggestions to revive the spirit of our entrepreneurs building. On this basis, the paper proposes the countermeasures and suggestions.to revive the entrepreneurial spirit.

Keyword:niche ; entrepreneurial spirit;decline;revive

1 Introduction

Niche concept began from the study of the ecology of bird populations. Since 1917, the American scholars Grinell first clear definited niche.He pointed “Niche is exactly the final distribution units occupied by a species or sub-species”.and from then niche was fully developed in biology. And niche was introduced to the field of Humanities in the 1970s, and then the scholars used a new perspective to study the state of the human society . Xu Fang (2004) pointed that occupational human ecological relationships belonged to human resources ecosystem. She pointed workplace interpersonal niche was the position occupied by the people and the functionality they played in specific interpersonal system. Meanwhile she carried out a preliminary study about interpersonal niche overlap and separation. It was the first time that academia combinated niche with huaman. So career niche can be taken as prototype of the human resource niche This paper will give the definon of China,s private entrepreneurs based on the above reseache. Then the paper makes a further research for the decline of current entrepreneurship.

2 the Performance of Entrepreneurship Fading

(A)Entrepreneurship Content

The word “entrepreneur” is borrowed from the French. It originally referred to venture operators or organizers. Representatives of neo-classical economics Marshall thought entrepreneurs included decisive, witty, self-reliance, agile and having a strong desire for enterprising superiority. Schumpeterian pionted that entrepreneurship was a kind of “creative destruction”.that entrepreneurship was found to promote the essence of the new combination of production factors. And it was one of the main driving forces for the promotion of social progress. Management priest Drucker held that entrepreneurship was a revolutionary act. And this act gave new wealth-creating capacity of existing resources. Chinese scholars defined entrepreneurship at different stages of enterprise development . Such as Guo Wuyan thought entrepreneurial growth, maturity and change period respectively corresponded to the individual entrepreneurship within entrepreneurship, corporate entrepreneurship and social entrepreneurship. Yang Chi Mei (2010) pointed that entrepreneurship had a significant direct impact on the competitive advantage of the cluster enterprises by using structural equation.

As can be seen from the statements, China’s state-owned enterprises only have managers but not entrepreneurs. Therefore, in this study, “entrepreneur” refers to private entrepreneurs.

In summary, we can draw the result that entrepreneurship is the spirit possessed by operators in our business in the process of the development of market economy .

(B)Entrepreneurship Fading Performance

The total number of private enterprises accounts for 99% of the total number of enterprises in China, creating 60% of GDP, providing 80% of jobs, and having increasingly large contribution to economic growth. But China’s private enterprises are facing financing difficulties from the early stages of development. These difficulties are strategy backward, the science and technology backwardand other issues. At the same time, 2008 U.S the subprime mortgage crisis triggered by the global financial crisis in U.S. in 2008 has prompted human society to enter a new era - the post-financial crisis era. In the post-financial crisis era, the process of de-industrialization implented by developed countries in the next few years will be eased. In this process, the United States and other developed countries will further strengthen the process of re-industrialization. The world will change from developing countries preferring trade protectionism to developed countries having a preference for trade protectionism. Developed countries will take attack for the too poor quality and too low value in developing countries in order to protect the price paid by the developed countries in the process of de-industrialization. This is bound to affect the process of industrialization in developing countries, affecting the further development of China’s private enterprises. In addition, the occurrence of the 2008 financial crisis has made China’s private enterprises market atrophy. China’s private enterprises finance bottlenecks are exacerbated.To sum ??up, we can see that,the current living space of entrepreneurs in China are subject to varying degrees of restrictions and limitations. The growth of entrepreneur’s niche has been hampered. Therefore, on the basis of the above-mentioned research, combining the analysis of “China’s business growth and development of the special report” made in 2010, 2011 , this paper summary the decline of the performance of our entrepreneurship as the following three aspects:

(1) State Examination tide - a collective of young people surfing

In 2010,Zero Survey shows Chinese youth lifestyle and consumer is that 18.2% of young college students hope to own business after graduation ,while 76.4% young college students expresse the hope to work in enterprises and organs of the party and government . “Go within the system” has become a popular choice of the young people of the moment.

(2) serious phenomenon of suicide in the form of crisis

The special report about growth and development of China Entrepreneurs released by the State Council Development Research Center shows that Chinese entrepreneurs sometimes or often face with varying degrees of negative emotions:”irritability” accounted for 70.5%, “exhausted” accounted for 62.7%, “frustrated” accounted for 37.6%, “misgivings” accounted for 33.1%, “frustration” accounted for 28.6%, “despair “accounted for 16.5%. From these, we can see that Chinese entrepreneurs are facing various problems. These problems bring them great physical and psychological harm. Since February in 2011, degrees of SME closures,funding stranding breaking, usury-ridden have emerged all over the country.These make our SME operators face greater challenges and pressures. If not handled properly, they will bring China’s SMEs more greater challenges and difficulties.

(3) emigration and investment flows of entrepreneurs

The first one is emigration. The majority of their target countries are the United States, Canada, Australia or Singapore. migration pattern is often somebody,s wife and children in a foreign country,and he engages in commercial activities between foreign and China. More than 1/4 (26.3%) of the respondents entrepreneurs said they had immigranted or had immigrant will. According to reports that 4.8% of the entrepreneurs had emigrated, 2.9% of entrepreneurs said they were applying immigrantsprocedures and 18.6% of entrepreneurs said although they had not applied to but they intended to immigrant. According to the conservative statistics of Zhejiang New Pass Immigration Company, there are at least 1,500 people are successed in immigration in Zhejiang each year, and the growth rate is 10% to 20% annually.Taking 400 million to invest immigration for calculating, there are 60 billion has flew to foreign countries in the last 10 years in Zhejiang. The second wave is investment flows.Due to the deterioration of the domestic business environment, many private enterprises have gave up the industrial, steering investment.Some entrepreneurs have dout about industrial, and even took doing Industrial as stupid things in the condition of meager profits.

Above shows that entrepreneurship in China construction is experiencing a range of problems, even fading, and the entrepreneurship construction faces enormous challenges and difficulties. If thess problems can not be solved in a time, China’s economic development, labor and employment, the harmonious development of society, and so will have been huge impacted.

3 Anlyzes the Reasons for the Decline of the Entrepreneurship based on Niche

(A)Entrepreneurs Niche

Entrepreneurs niche is similar to Hutchinson biological n-dimensional super-volume model: the collection of ranges of choices of resources(such as food types)and enviromental variables (such as temperature) of every organism poses its niche.

Duing to resources and environment variables are multidimensional, so a biological niche is a multidimensional hypervolume. Entrepreneur is also a class of species biological, and we take a variety of environmental resource conditions as a dimension, then we can get the result that the various environment resource conditions of the entrepreneurs , growth respectively present a demension, and entrepreneurs in every dimension will have an existence range,then we call the range is entrepreneurs , niche.The niche can be abstracted to the formula as following:

. Y=F(X1,X2,……. Xn)

Y is the entrepreneur’s niche space, X is the entrepreneur’s niche dimension,and F is the entrepreneur’s niche function.X1, X2, ....... Xn dimensions together form a collection of N-dimensional super-volume model, and the function of F. So the mutual influence of the N-dimensions relationship are expressed by this formula.

Entrepreneurs must follow the law of development of their niche if they want to survive in their ecosystem.

(B)Reasons for the Decline of Entrepreneurship

The factors causing the decline of private entrepreneurship in China are not only from the market,but also from non-market factors.

(1) The non-market factors― strong government-led development model has influenced the development of entrepreneurship. In the ecological system of the market economy, enterprises and democracy are its protagonist, entrepreneurs are the soul of the enterprises, government plays the role of macro-control in the process of the development of market economy.That is to say, government is in subordination in this ecosystem to safeguard the interests of the enterprises and the public . But in recent years, due to the slow even stagnant development of reform, government has changed the identity and status in the development of market economy in order to gain a great dea,changing from the implementation of the rules of the game to the participants of the game.It is more and more that government intervents economic activities, and these interventments are more and more frequently. Meanwhile, the state-owned enterprises have strongly expanded private enterprises with their own advantages in the aspects of the policy, legal, financial, ideological, and strongly compressed private enterprises living space.

Intervention in the development of the market economy bythe government has increased the burden on businesses, especially the burden of private enterprises, disrupting the market order, it is not only undermine the stability of the market development but also increases the uncertainty of market development. Therefore, the impact of the financial crisis, in the case of the operating environment constantly being destroyed, declining profit opportunities, a number of private entrepreneurs eventually have to abandon the Industrial, and steer to investment. Therefore, entrepreneurs living space has been greatly compressed. Entrepreneurial reality niche is threatened. It ultimately makes entrepreneurs not work very well in their niche and life. The result is that the part of entrepreneurs are destroyed in the niche,and their life is encountered troubles. In another part of the entrepreneurs turn to other areas for development.in order to survive.

Entrepreneurs social status changing also leads to the decline of the entrepreneurial spirit. Chinese scholars studies have shown that, the widening income gap is mainly due to money trading, corruption in public investment, land supply, and monopoly industry. But the reality is rent-seekers always put public pressure toward wealth managers and creators. Therefore, it makes people’s hatred of the rich psychological instead of respect for wealth, which leads to the loss of both innovative and enterprising entrepreneurs momentum, and makes the sense of responsibility of contributing to the community’s to become the pressure under public opinions. Entrepreneurs eventually lost the quality and sense of responsibility and the entrepreneurial spirit.

(2) Market factors - some entrepreneurs psychology was exacerbated by the quick success of the development in the fierce market competition at home and abroad .

In term of market factors ,the increasingly fierce competition in the market is another important factor to cause the pressure of private entrepreneurs. Data shew that 35.7% of the entrepreneurs said that their pressure came from the increase of the cost of business operations in competition with state-owned enterprises and foreign companies. In addition, 22.9% of entrepreneurs said their enterprises and state-owned enterprises and foreign companies were in the competition for talents intense. In addition, the contest competition in the market price (20%), brand awareness (20%) and technological innovation (15.7%) with state-owned enterprises and foreign companies are also made entrepreneurs feel some pressure.

In summary, we can see that entrepreneurial niche is influenced by market factors in their habitats and non-market factors . Entrepreneurs niche space is constantly compressed, facing the increasing pressure to survive. In addition, China’s entrepreneurs have not yet established a true entrepreneur union. The absolute number of entrepreneurs are going it alone. Therefore, the collaborative development of entrepreneurial niche is very difficult. This weakens the viability, development and competitiveness needed for development of the entrepreneurs niche.It made the entrepreneurship presents a trends of decline.

4 the Countermeasure of revive the Entrepreneurial Spirit

(A) Confirming Entrepreneurs Niche, Playing to Their Strengths

According to the principle of niche,the strong is stronger only in their own niche, and the weak only in their own niche can free survival. So China entrepreneurs must first find correctly their niche, then they can expand their niche space form the depth and breadth under their strengths.

(B) Competition Cooperation instead of Exclusion

As competition intensifies, the stability of the living environment of entrepreneurs reduces,and the uncertainty is increased In order to obtain the largest survival benefit, entrepreneurs should try to avoid overlap with others niche, forming a community of interests of niche complementarity and cooperation. And entrepreneurs should change from pursuiting of the pure competition of “life and death”, “single win “, to the shift of a higher level of cooperation of the pursuit of” win-win “or” win-win “competition. That is, entrepreneurs change from a “competitor” to competition teammate.So that the entrepreneurs can integrate and use of all resources, and promote the coordinated development of the entire group of entrepreneurs.

(C)Promoting the Co-evolution of Groups of Entrepreneurs

Groups of entrepreneurs is a system, and each part of the evolution will be driven by the development of other parts of system.The entrepreneurial individual development is inseparable from the development of a harmonious and orderly organization. Therefore, the entrepreneur must combine the development of individual development with the entire organization, or even combine the development of the country as a whole, and ultimately to achieve the harmonious development of entrepreneurs and organizations.

(D)Managing Entrepreneurs from the Point Niche

Entrepreneurs niche is the measure that environment makes a natural selection of entrepreneur,and it is also the basic point of reference of the entrepreneurs adapt to environment development. Entrepreneurs niche guides the direction of development of entrepreneurs. At the same time, Entrepreneurs niche is also the catalyst for entrepreneurs in the development process. It regulates the entrepreneur’s own regulation of self-organization and to maintain the balance of their own development, prompting entrepreneurs to accept more material and information flow according to environmental needs and the needs of their own development. Therefore, regardless of corporating human resources management or the entrepreneur’s own management, it should be taken on consciously from niche perspective.

5 Conclusion

Niche theory play an active role and significance in reviving the spirit of Chinese entrepreneurs,so the paper author will make a further empirical research about this in later study.

References:

[1] Grinnell.J,“The niche-relationship of the California thrasher” , Auk,Vol. 1917pp 427-433 .

[2]Hutchinson G E.A,“Treatise on limnology .Vol.Geography physics and chemistry”.New York :Wiley,1957pp11-53

[3]Xufang. Preliminary research on interpersonal Niche. Journal of Hainan University. 2004(4):397-399.

[4]“Chinese business owners grow and develop special report”in2008、2010、2011.