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d theories, such as PEST analysis concerning sociocultural contexts, fund raising strategies, 4ps Marketing strategies and other models are also our concerns and discussed in this section. Section III presents the data collection methods in this project. The first to come is the use of PEST Analysis to evaluate the sociocultural contexts of the investigated companies. Interviews of five clothes boutiques owners, case study of a chain store enterprise and 4ps-marketing model are applied to find the solutions to the problems. All the data collected are shown in this project. The interview notes are presented in this section. In Section IV, we make a detailed discussion of collected data, try to give explanation about the findings by applying the theories we think relevant to the project issue. In the conclusion part, we reveal the significance, implications of the study and answers to the problem we have raised in the introduction part. In the last section, some recommendations are put forward to help improve the macroeconomic condition of small business, and shed light on the future achievement of other industries.

II. Literature Review
This chapter presents a literature review of the theories and empirical researches on entrepreneurial activity as exhaustive as possible both from China and abroad. After a discussion of a few definitions of entrepreneurial activity, first, one definition relevant to our research is put forward. Thereafter, a summary of previous study of entrepreneurship comes, mainly covering the theoretical models and basic theories giving hints at our present study. We put emphasis on the social network theory, tracing its development and present its main findings. As far as the social network is concerned, we inevitably pay attention to the survey of socioeconomic condition of the subject area, to judge its influence on the business. Since the business start up involves marketing and management, especial in the retailing industry, we lay stress on the theories of marketing.
2.1 The Definition of Entrepreneurial Activity
After a discussion of a few definitions of entrepreneurial activity, first, one definition relevant to our research is put forward.
According to Gartner (1989), entrepreneurs are simply those who create new independent organizations. Some scholars like Aldrich & Wiedenmayer (1993) assert that the purpose of the new organization that qualify as entrepreneurship must also create value through a product or service. Other writers like Shane & Venkataratnam (2000) define entrepreneurship as ‘a process that involves the discovery, evaluation and exploitation of opportunities to introduce new products, services, processes, ways of organizing, or markets’.
While most of the explanations of the term entrepreneurship have adopted different assumptions, most of them do assert that entrepreneurship connotes an innate ability to sense and act on opportunity together with the determination to create or bring about something new to the world.
Having discussed the concept of entrepreneurship we can now define what entrepreneurial activity is. According to OECD, an entrepreneurial activity ‘is the enterprising human action in pursuit of the generation of value, through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets.

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