Entrepreneur's Enterprise Theory

Author: Yang Qijing
Publisher:
Publish Date: 2005-05-01
Features: Mainstream corporate theories are based on mature enterprises, with "investors" as the logical starting point and research focus, essentially being "capitalist corporate theory." Unlike this, this book argues that the enterprise is not a natural entity but a special organization created by entrepreneurs to indirectly price their unique human capital. Therefore, entrepreneurs and their entrepreneurial activities are the natural starting point for the development of enterprises and their various contractual relationships. In light of this, the author attempts to understand the essence of the enterprise from the perspective of the entrepreneur and strives to logically reveal some patterns in the formation and evolution of the various contractual and organizational relationships of the enterprise. Within the framework of incomplete contracts theory, the author constructs a financing contract model for entrepreneurs and proves that equity capital, rather than bank loans, should be what entrepreneurs need first. Of course, entrepreneurs will choose appropriate financing contract arrangements based on their endowment conditions, and there are complex complementary and substitutive relationships between various contractual rights. On this basis, this book further demonstrates that the construction of standardized governance systems and professional management not only benefits entrepreneurs in obtaining external financing but also helps ensure the long-term interests of entrepreneurs after successful entrepreneurship. Because as entrepreneurs successfully materialize their entrepreneurial human capital within the enterprise, they also transform into ordinary shareholders. It is precisely at this moment that the enterprise is no longer just a physical asset but an organic entity that incorporates entrepreneurial human capital; shareholders, including entrepreneurs, truly gain a certain kind of "capital power."