Study on the Impact of Entrepreneurship on Enterprise Performance in the Manufacturing Industry

Purpose: The study aims to explore the impact of entrepreneurship on the performance of manufacturing enterprises in China, focusing on specific traits of entrepreneurship such as innovation, risk-taking, and competitiveness. Additionally, it examines the relationship between entrepreneurship and regional economic growth, with an emphasis on how entrepreneurship drives enterprise performance, particularly in economically underdeveloped regions. Approach/Methodology/Design: The research uses empirical analysis based on sample data from listed manufacturing companies on China’s Shanghai and Shenzhen A-share markets. It employs regression models to assess the impact of entrepreneurship on enterprise performance. Indicators such as R&D investment, market share, and firm size serve as proxies for entrepreneurship traits, while principal component analysis is used to calculate scores for both entrepreneurship and enterprise performance. Control variables include regional economy and leadership structure. Sub-regional analysis is conducted to compare the impact of entrepreneurship across different economic regions. Findings: The results show that entrepreneurship, innovation spirit, risk-taking spirit, and competitive spirit all have significant positive impacts on enterprise performance. Additionally, in different economic regions, entrepreneurship generally has a positive impact on enterprise performance, with a greater effect observed in areas with lower economic development. Practical Implications: The study provides valuable insights for enterprises and policymakers. It suggests that enterprises can enhance their competitiveness by fostering entrepreneurial traits, increasing R&D investment, and efficiently managing financial leverage. Furthermore, governments should support entrepreneurship in underdeveloped regions through training and policy measures to stimulate regional economic growth. Originality/value: This study constructs a unique evaluation system for entrepreneurship from a micro perspective and verifies its positive impact on enterprise performance. This study innovatively explores the differential impact of entrepreneurship across various economic regions, providing new perspectives for future research on the relationship between regional economies and entrepreneurship.