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Impact Paths of the Entrepreneurial Behavior of the Underclass Groups’ Involved in Urbanization: A Case Study of Zhejiang Province, China

Year: 2025

Type: article

Abstract: The aim of this paper is to clarify the influence mechanism and role paths of the entrepreneurial behavior of the underclass groups (EBUG) involved in urbanization from a microcosmic perspective and propose sustainable development paths for the transition of underclass groups’ entrepreneurship from the subsistence type to the opportunistic type. Based on the theories of planned behavior, the entrepreneurial event model, and social cognitive theory, this study constructs a theoretical framework of “intention–situation–behavior” of the EBUG involved in urbanization. Through a questionnaire survey conducted in three major urban agglomerations in Zhejiang Province, the theoretical model is validated by using structural equation modeling (SEM). On the one hand, perceived desirability, perceived feasibility, and land expropriation all have a significant positive influence on entrepreneurial behavior. On the other hand, land expropriation has a significant moderating effect on entrepreneurial intentions and behaviors. When the moderating role of land expropriation is not considered, underclass groups are more likely to engage in opportunistic-type entrepreneurship, which is primarily driven by perceived desirability such as achievement motivation and innovation orientation. In contrast, when land expropriation is considered, these groups tend to focus on survival entrepreneurship, which is mainly influenced by perceived feasibility factors such as social capital and market opportunities. The future survival and development of underclass groups is contingent upon urbanization, with the potential to influence the stability and sustainable development of society. The government should enhance the underclass groups’ perceived desirability through skill conversion, financial innovation, and digital empowerment; improve their perceived feasibility through the entrepreneurial resilience-building platform and the “Village Sage Mentorship System”; and refine the land expropriation policy by means of the securitization of collective assets, the multifunctional utilization of rural homesteads, and the cultivation of localized new business formats. By doing so, it can promote the transformation of the underclass groups’ entrepreneurship from the “subsistence type” to the “opportunistic type”.

Source: Sustainability

DOI: 10.3390/su17093844

Authors: Buqing Fang, Shiming Fang, Lu Han

Institutions: China University of Geosciences, Communication University of Zhejiang, Hangzhou City University

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Sustainable cities and communities, Decent work and economic growth, Reduced inequalities, No poverty

Open Access status: gold

Estimated APC paid: $2,896