摘要

The driving force behind the China's spectacular economic gains has been the re-emergence of a dynamic private sector in the form of Small & Medium Business, meanwhile there is a great gap of private economy between eastern and western regions of China. In this paper, we focus on if and how entrepreneurship of private sector influenced by social networks variables. Our econometric study is based on data for 400 persons from a recent representative survey of the population in these two China regions. We use the probit model that takes care of the regional stratification of the data, and the results of the nonlinear models are carefuly interpreted and illustrated. We show that the differences of social networks in these two regions matters for the decision to start new private enterprises, i.e. These findings are helpful for regional policies to encourage new private enterprises firm entry.