Abstract:
China is currently at a pivotal stage in its transition from high-speed growth to high-quality development. The 2025 Government Work Report clearly identifies the priority of “developing new quality productive forces in ways that suit local conditions and accelerating the creation of a modern industrial system”, while further emphasizing the need to “improve employment and entrepreneurship services and broaden employment and entrepreneurial channels for college graduates and other young people”. These policy directives echo the Recommendations adopted at the Fourth Plenary Session of the 20th CPC Central Committee,which explicitly place “building a modern industrial system and strengthening the foundation of the real economy” at the forefront of the nations strategic agenda. Within this national context,entrepreneurial activity,which has long been recognized in the economic literature as a fundamental driver of growth,job creation,and the efficient allocation of resources,has acquired a new historical mission. Entrepreneurship is now expected to serve as a crucial force for promoting economic upgrading and supporting broader social progress.
Household entrepreneurship,as an important manifestation of microeconomic vitality,plays a particularly significant role in this process. It has the potential to invigorate the development of new quality productive forces through the adoption of new technologies,the exploration of innovative business models,and the enhancement of human capital. At the same time,it forms an essential micro-level foundation for consolidating the real economy. Since the beginning of the Thirteenth Five-Year Plan period,nearly nine million individuals have returned to or relocated to rural areas to start businesses,generating more than 35 million jobs. This phenomenon provides vivid evidence of the important role of entrepreneurship in job creation and in stimulating market dynamism. A systematic review of the literature on household entrepreneurship is therefore necessary for clarifying the evolution of research in this field,synthesizing fragmented empirical findings,and identifying gaps that deserve further exploration. Such a review can help scholars better understand the characteristics,determinants,and mechanisms associated with household entrepreneurship. It can also provide policymakers and practitioners with a more solid foundation for promoting the integration of household entrepreneurship with the development of new quality productive forces and for strengthening the micro level bases of the real economy.
This study differs from existing reviews of household entrepreneurship in two primary respects. First,it focuses specifically on the determinants of households decisions to engage in entrepreneurial activity,summarizing why households choose to start businesses and what challenges they encounter. Prior reviews predominantly focus on the conceptual frameworks of entrepreneurship research,theoretical syntheses,or the interplay between theory and practice. However,entrepreneurship begins with the decision to start a business. By examining the literature on the antecedents of entrepreneurial choice,we can uncover the factors shaping households entry into entrepreneurship,identify the difficulties and constraints they face,and propose corresponding solutions. This not only informs policymakers and nascent entrepreneurs but also promotes the further development of household entrepreneurship and the sustained flourishing of entrepreneurial activity more broadly.
Second,this review is anchored in the Chinese context. Existing surveys of the field are largely based on foreign research,while limited domestic reviews often rely heavily on international literature to discuss the development and challenges of the broader entrepreneurial landscape. Although some previous studies adopt a China-centered perspective,they do not provide a systematic analysis of household entrepreneurship from the standpoint of its determinants. Given the unprecedented global changes and Chinas transition from high-speed to high-quality development as the worlds second-largest economy with immense potential,a systematic review of domestic scholarship can better capture the distinctiveness and practical challenges of household entrepreneurship in China and offer a localized evidence base for policy making.
The main contributions of this study are fourfold. First,it constructs an analytical framework that integrates “internal motivations-external drivers”, systematically reviewing the multidimensional factors,ranging from individual characteristics and family background to social culture and institutional environment,and their interactive mechanisms that shape households entrepreneurial choices. This framework provides a comprehensive perspective for future research. Second,it places explicit emphasis on the initiation of entrepreneurial decision-making. Unlike existing studies that predominantly examine entrepreneurial performance or subsequent stages of entrepreneurial activity,this paper focuses on why households choose to start businesses and what determines these decisions,offering crucial early-stage insights for policy intervention. Third,grounded in the Chinese context,it systematically synthesizes domestic research to uncover the unique features and practical constraints of household entrepreneurship in China,thereby providing localized guidance for policymaking. Fourth,it emphasizes practical orientation,offering not only theoretical support for academic research but also policy recommendations for optimizing the entrepreneurial environment and promoting the integration of entrepreneurship with new quality productive forces.
In sum,this study provides a comprehensive review of the determinants of household entrepreneurship. It advances academic understanding of micro-level entrepreneurial behavior and offers insights for policymakers seeking to stimulate household entrepreneurship,strengthen the real economy,and support Chinas transition toward high-quality development.