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How do very small businesses survive in a rent-seeking society? Evidence from China

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  • Zhang, Yongjing
  • Dong, Zhiqiang
  • Wei, Xiahai

Abstract

This study identifies very small businesses (VSBs) as survival-oriented entrepreneurs. Using a unique survey of 1450 VSB owners (with fewer than 50 employees) across China, combined with regional fiscal and institutional data, we provide the first micro-level evidence on how VSBs allocate entrepreneurial efforts to enhance survival in a rent-seeking society.

Suggested Citation

  • Zhang, Yongjing & Dong, Zhiqiang & Wei, Xiahai, 2026. "How do very small businesses survive in a rent-seeking society? Evidence from China," China Economic Review, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:chieco:v:96:y:2026:i:c:s1043951x26000118
    DOI: 10.1016/j.chieco.2026.102661
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