Abstract：Drawing on the useful ideas about TEA, GEDI and CPEA, this paper constructs three sub-index to evaluate the China Entrepreneurship and Development Index (CEDI), which combines with China’s economic development reality and the feature of economic statistics and survey data. We use CEDI to measure regional, provincial or city entrepreneurship development capability in China and analyze the differences of entrepreneurship development and development potential of entrepreneurial economy in regions. Based on the CDEI, we verify the relationship between entrepreneurship and economic development to be mildly S-shaped. We try to emphasize the important role of start-up activities with high growth potential and the stability of entrepreneurial environment to economic development in the innovationdriven stage. This paper provides the data basis for government departments to formulate incentive policies on entrepreneurship and institutional design during the period of economic transition. The results show that as a multidimensional index, CEDI can measure the ability of entrepreneurship development and the development potentials of entrepreneurial economy in a region from many dimensions. As a measure of venture capital, it can genuinely reflect its levels, and the relationship between venture capital and economic growth．

Keywords: Entrepreneurship and Development Index; Entrepreneurial Economy; Venture Capital; Entrepreneurial Environment