Abstract: In light of the guidance of the State Council on the classification of advancing the reform of institutions,the transformation of public institutions into companies should be advanced for those engaged in production and business activities and cultivating a number of high-quality geological prospecting entrepreneurs is fundamental to promote this reform.Based on the study on Chinese political system and traditional culture,this research analyzed the characteristics of Chinese geological prospecting entrepreneurs and their growth environment and found that the defects of growth environment and incentive mechanisms restricted standing out of these entrepreneurs.Using the theory of modern enterprise,this paper brought about the effective mechanism of cultivatiing geological exploration entrepreneurs:property right system reforms,incentive and protection mechanisms,supervision and restraint mechanism,etc.