Abstract:Based on entrepreneurial learning theory, this paper discussed the influence mechanism of entrepreneur's mental model on business performance, and tested the role of environmental dynamics. Interviewed and questionnaire data from 271 entrepreneurs showed a direct impact of entrepreneurs' prior knowledge and belief system on enterprise performance. Utilization learning played an intermediary role in the influence of entrepreneurs' prior knowledge on enterprise performance. Environmental dynamics played a moderating role in the relationship between entrepreneurs' prior knowledge and enterprise performance.