The impacts of external factors on the growth of Chinese entrepreneurial enterprises

Purpose – The purpose of this paper is to explore the key external factors that are impacting on the performance of Chinese entrepreneurial enterprise (EE). Design/methodology/approach – A linear regression model was developed that comprised three types of organisations(government, university and R&D institute, agency, financial institution) and three kinds of environmental factors(legal and institutional environment, culture, geographic location) which greatly influence Chinese venture enterprises growth. The model was validated using 91 responses obtained through a questionnaire survey carried out in Shanghai, Zhejiang, Jiangsu and Fujian Province of China. Findings – Evidence suggests that a fine relationship with a financial organisation positively impacts on the growth of EEs and a close relationship with government shows a disadvantageous impact on the EE's growth. The significant influence of environmental factors appeared to come from entrepreneurial culture and atmosphere. Practical implications – The findings suggest that Chinese EEs need more favorable financial support. And they also need to have more entrepreneurial learning in a good entrepreneurial culture and atmosphere. Chinese governmental departments should adjust their strategy and means to motivate EEs, not only to give them favourable policy and support but also to improve their competitive power. Originality/value – The paper highlights the external factors which can significantly affect the growth of Chinese EEs and is, therefore, of practical use for Chinese EEs and support agencies in China. The analysis also offers a more comprehensive understanding about Chinese EEs' development context.