Owning your future: Entrepreneurship and the prospects of upward mobility in China

Entrepreneurship can be a means for wealth accumulation and upward mobility. However, would people with prospects of upward mobility (POUM) be more likely to engage in entrepreneurship in order to achieve upward mobility? Using data from the Chinese General Social Survey (CGSS), we show for the first time that people with higher POUM will be more likely to engage in entrepreneurship. The effect of POUM on entrepreneurship is stronger for individuals with lower financial constraints. Moreover, higher POUM can enhance an individual's risk-taking attitude and degree of social capital, thereby motivating entrepreneurship. Overall, this article highlights the crucial noneconomic role that social mobility expectations play in driving individuals towards entrepreneurship.