Entry and Exit Process of Small Businesses in P. R. China's Retail Sector

Abstract

Clement Chow Kong-Wing at the time of writing this paper a lecture in the Nanyang Technlogical University, Singapore and now with the Hong Kong Institute of Business studies, Lingnan College. Small Business have been developing rapidly in china in the iplemnation of economic refor in the late 1978. This paper presents an empirical analysis to asses whichsocio ecomoc factors account for the entry exit proces of small individual enterprise focus only on short-term benefits. the following result were obtained. our empirical test confirms taht private enterpreneus only focus on short or medium term benefits because their entery exit decisions were affected by the temporary recesion inducedby the 1988 austerity programme. Small retialers enter or leave the retail sector gradually and the entery procss is slown than the exit process;3 factors like per cpaital national income, city-province and coatal inland difference, mobility of households, population density and growth are also relevant in accounting for the changes of entry-exit process eithr before or after the 1988 austerity programme.