Management Review

›› 2020, Vol. 32 ›› Issue (4): 64-76.

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The Influence Mechanism between Entrepreneurship Allocation and Private Enterprises' Employment Absorbing Ability

He Xuan1,3, Yuan Yuan2, Tang Jing1,3   

  1. 1. Non-State-Owned Economy Development Research Center, Guangdong University of Foreign Studies, Guangzhou 510006;
    2. School of Business Administration, Dongbei University of Finance and Economics, Dalian 116025;
    3. School of Economics and Trade, Guangdong University of Foreign Studies, Guangzhou 510006
  • Received:2017-06-19 Online:2020-04-28 Published:2020-05-07

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Abstract:

Based on the theory of entrepreneurship allocation, this paper uses the tenth national private entrepreneurs' sample survey data to explore the impact of entrepreneurship allocation on the ability of private enterprises to absorb employment. Through empirical research, we find that productive activities can raise the ability of private enterprises to absorb employment. But in the extensive development process, on the one hand, vicious competition leads to overcapacity of private enterprises, thus seriously weakening the above positive relationship, and on the other hand, environmental factors such as corruption force entrepreneurs to "seek rent while producing". The effect of productive investment on absorbing employment actually needs the "cooperation" of non-productive investment. At the current stage of the "new normal" of the economy, we can rectify the distorted allocation of entrepreneurship by persisting in anti-corruption to improve the ill-health mechanism of employment absorption capacity. At the same time, efforts should be made to increase the total factor productivity of private enterprises and expand companies' living space so that stable employment can be ensured.

Key words: entrepreneurship allocation, employment, overcapacity, corruption, private business