Barriers in the Commencement of Entrepreneurship for University Graduates in China’s Greater Bay Area : Human Capital or Social Capital?

Responding to the challenges generated from graduate unemployment and underemployment, the Chinese government has tried to promote entrepreneurship among university graduates in recent years. Theoretical works suggest various factors that might influence the career development of graduates. However, few empirical research has been conducted to understand the barriers faced by nascent graduate entrepreneurs in urban China. This chapter contributes to the theoretical debates about the roles of human capital and social capital in influencing graduate employment outcome by providing empirical evidence from Shenzhen, China. It investigates the barriers faced by nascent entrepreneurs in Shenzhen and discusses the gap between university entrepreneurship education and actual demands, fixing a gap in extant literature. Findings suggest social capital is playing increasingly important roles in the context of degree inflation.