In China, regions with the most dynamic start-up businesses are neither southeast Jiangsu and Zhejiang, nor Guangdong, but rather central Shaanxi and Hunan province, according to a report on small and medium sized enterprises released by the Southwestern University of Finance and Economics, and China PnR Co.

The report shows that in terms of housing prices, an increase of one thousand yuan per unit results in a decrease of 4.1 percent in entrepreneurship - a decrease of nearly 120,000 start-up businesses.

Only 0.5 percent of Beijing families start businesses in Beijing where housing prices are high, while in regions with lower housing prices such as Shaanxi and Hunan provinces, the percentage of families with start-up businesses account for 3 percent and 3.5 percent respectively.

Despite sharp gaps between certain cities, the overall percentages of start-up businesses in east, central and western China are nearly at the same level, standing at 0.55%, 0.59%, and 0.53% respectively.

Housing prices and governmental regulations are major inhibitors to entrepreneurship in big cities like Beijing and Shanghai, said Li Feng, a researcher with the Southwestern University of Finance and Economics.

The article is edited and translated from 中国小微企业调查报告出炉 房价上涨影响创业活力; Source: Beijing Times