Small Business Economics· 2026Q1
Business networks and the persistence of entrepreneurship: evidence from China
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Short summary
Pre-Mao era chambers of commerce in China are associated with persistent patterns of business creation and economic output, even after private firms were banned and until the market economy returned post-1978.
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Key points
- Pre-Mao chambers of commerce density correlates with long-term business creation and economic output in China.
- This association persisted through the period when private firms were banned and into the post-1978 market economy.
- The influence of historic chambers weakened over time but remained detectable.
- Historic chambers density is correlated with later social capital, despite significant political shifts.
AI-generated from the title and abstract; the full text is not read.
Abstract
Abstract This paper investigates the long run association between business networks and entrepreneurship and regional development in China. We focus on chambers of commerce, bodies which facilitated networking between businesses until private firms were banned by Mao. Our results suggest that the pre-Mao chamber system is associated with long-lasting patterns of business creation and economic output in China, with this influence surviving until the post-1978 return of the market economy. The associations are strongest in the early reform period but weaken over time. We show evidence that historic chambers density is correlated with later social capital, despite major political change.
The authors' abstract, as published at the source. Small Business Economics, 2026 · DOI ↗
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