Enterprise development in a diversified metropolis: the case of Beijing

Purpose – This study aims to test the relationship between city industrial diversity and enterprises development in an urban region, in order to investigate the effect of diversified urban environment on the development of urban enterprises and its changing trends. Design/methodology/approach – The research adopts a quantitative approach and the data are from a data bank of industrial censuses which contains data of all firms in Beijing for three years. All data concerning diversities were counted. Findings – The main findings of this research are that industrial differences in entrepreneurship activities were mainly related to industrial diversities. Different from the relationship of development of regional enterprises based on the development of regional economy growth, the enterprises development of different industries lies in the intra‐ and inter‐industrial diversities. Practical implications – Intra‐ and inter‐industrial diversities can contribute to entrepreneurship activities in a region. It is therefore argued that one of the effective ways to boost entrepreneurship is to advance the industrial diversities of a region. Originality/value – The originality of this research is two‐fold. A modified conceptual framework is proposed to test the relationship between entrepreneurship and diversified industrial structure; it is the first empirical study concerning regional industrial diversities and enterprises in China.