Research on the mechanism involved in urban social inclusiveness and resident entrepreneurship: Evidence from China

Abstract

During the urbanization process in China, issues such as the widening wealth gap, class stratification, and social exclusion influenced residents' decisions to pursue entrepreneurship. Inclusiveness is an inevitable trend in new urbanization, and it is also a key factor in promoting residents' entrepreneurship and stimulating the potential for social innovation. Based on three key principles, “fairness, openness, and sharing, “ this paper assesses the relationship, and the internal mechanism driving the relationship, between urban social inclusiveness and resident entrepreneurship. This includes constructing an urban social inclusiveness index, and analyzing data from the 2018 China General Social Survey (CGSS). The key results indicate that urban social inclusiveness has a significant positive effect on resident entrepreneurship. The mechanism analysis shows that urban social inclusiveness can improve the probability of residents being entrepreneurial, by improving risk attitude, promoting class mobility, and expanding social networks. Heterogeneity analysis shows that urban social inclusiveness has a significant impact on the entrepreneurial of local residents, and low-class and high-class residents; urban social inclusiveness has no significant impact on the entrepreneurial choice of transient residents and middle-class residents. Besides, urban social inclusiveness plays a more significant role in promoting residents' choice of survival entrepreneurship, compared with opportunistic entrepreneurship.