Abstract:This paper investigated the relationship between entrepreneurial ability and firm performance, and the role of industrial structure, using data of Chinese listed companies in 2011. It was found that the higher entrepreneurial ability, the better firm performance. The effect of entrepreneurial ability on firm performance is more significant in the companies with small market shares than that in companies with big market shares. In addition, the influence of industrial structure on the role of entrepreneurial ability was less significant in the recession industry. Therefore, upgrade the entrepreneurial ability is a shortcut to improve performance for the companies with low market shares.