Abstract
This paper examines the relation between regional unemployment and the likelihood of individual early-stage entrepreneurial activities from a social and human capital perspective. Using Chinese Global Entrepreneurship Monitor (GEM) survey data and China statistics yearbook during 2009-2013, this paper finds out the negative effect of regional unemployment on the probability of an individual to start a new business. The findings also indicate that the social capital strengthen the relationship between regional unemployment and individual opportunity or necessity entrepreneurial activity, and the human capital weaken the relationship between regional unemployment and individual opportunity- based entrepreneurial activity. Finally, this paper makes theoretical contributions about entrepreneurship and practice contributions about government policies.
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