Institutional Environment, Entrepreneurial Confidence, and Corporate Investment Choices

A lack of confidence is one of the typical issues in Chinas current economic development. Understanding the factors that influence entrepreneurial confidence can help address related challenges in a targeted manner, thereby contributing to economic growth. By reviewing the literature on institutional environment and entrepreneurial confidence, and analyzing classic cases such as United Family Healthcare and Credit Hangzhou, this paper elucidates the relationship between institutional environment, entrepreneurial confidence, and corporate investment choices. The study finds that the credit system and the legal institutional environment play a significant role in influencing entrepreneurial confidence. Specifically, the development of the credit system, strengthening of property rights protection, and optimization of the business environment can enhance entrepreneurial confidence, which in turn affects corporate investment. Looking ahead, the paper suggests promoting the construction of trustworthy and untrustworthy credit systems and establishing a safe and reliable legal society to overcome the issue of insufficient entrepreneurial confidence, thereby fostering investment and healthy economic development.