<p>A significant indicator of prosperity, standard of life, and economic growth is entrepreneurship, which is heavily impacted by macro- and micro-economic influences. This study researches the impact of cultural diversity on residents’ entrepreneurial activities and the mechanisms underlying it at the household and individual levels, using micro-sample data from the urban dialect diversity index and the China Household Finance Survey (CHFS) conducted between 2017 and 2019. According to benchmark regression results, in the current stage of rapid urbanization development, cultural diversity has a negative restricting impact on both individual entrepreneurial activities and family entrepreneurial activities in Chinese cities; that is, the more diverse a city’s culture, the more likely it is that its mass entrepreneurial vitality will be reduced. The finding holds up after the robustness test. Moreover, we also find that the effect may be more salient in groups with low education levels, entrepreneurship with different industries, and regions with urbanization levels. According to further research, social capital, market segmentation, and labor mobility play important roles in the channels through which cultural diversity affects entrepreneurship. This study enriches the research on dialect culture as an informal institution influencing residents’ entrepreneurship by emphasizing the important role played by the level of regional social trust, the construction of residents’ social networks, the level of regional market development, and the cross-regional mobility of labor. By analyzing the relationship between the cultural diversity of the region and the intrinsic behavioral logic behind entrepreneurial activities, our study provides references for firms, governments, and relevant regulatory authorities. In this paper, we advocate taking dialect and cultural differences into account in enterprise development and market integration to improving the open environment of cities and enhance entrepreneurial vitality.</p>

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Cultural Diversity and Mass Entrepreneurship: Evidence from China Household Finance Survey and Dialect Data

  • Hong Li,
  • Jiayi Liao

摘要

A significant indicator of prosperity, standard of life, and economic growth is entrepreneurship, which is heavily impacted by macro- and micro-economic influences. This study researches the impact of cultural diversity on residents’ entrepreneurial activities and the mechanisms underlying it at the household and individual levels, using micro-sample data from the urban dialect diversity index and the China Household Finance Survey (CHFS) conducted between 2017 and 2019. According to benchmark regression results, in the current stage of rapid urbanization development, cultural diversity has a negative restricting impact on both individual entrepreneurial activities and family entrepreneurial activities in Chinese cities; that is, the more diverse a city’s culture, the more likely it is that its mass entrepreneurial vitality will be reduced. The finding holds up after the robustness test. Moreover, we also find that the effect may be more salient in groups with low education levels, entrepreneurship with different industries, and regions with urbanization levels. According to further research, social capital, market segmentation, and labor mobility play important roles in the channels through which cultural diversity affects entrepreneurship. This study enriches the research on dialect culture as an informal institution influencing residents’ entrepreneurship by emphasizing the important role played by the level of regional social trust, the construction of residents’ social networks, the level of regional market development, and the cross-regional mobility of labor. By analyzing the relationship between the cultural diversity of the region and the intrinsic behavioral logic behind entrepreneurial activities, our study provides references for firms, governments, and relevant regulatory authorities. In this paper, we advocate taking dialect and cultural differences into account in enterprise development and market integration to improving the open environment of cities and enhance entrepreneurial vitality.