The social credit system is an important support for fostering a new development pattern. In recent years, China has taken a distinctive path, which is systematic, comprehensive, and digital, in the construction of the social credit system. Based on the policy background of credit construction pilot cities in China, this paper uses new firm registration data from the State Administration for Industry and Commerce of China (SAIC) to study the effect of social credit system construction on entrepreneurship vitality with a difference-in-differences framework. The study finds that the establishment of credit construction pilot cities, an important measure to promote the credit system, has significantly promoted urban entrepreneurship. It is proved that the policy has improved the levels of business, government, and judicial integrity. The results of the mechanism test indicate that the construction of credit cities could promote entrepreneurship by alleviating financing constraints and reducing policy uncertainty. Further analysis shows that the positive effect of credit city construction on entrepreneurship is greater in regions with high levels of social trust and the rule of law, indicating that the development of a culture of trust and the rule of law are both important supports for social credit system construction. This research assesses the economic effects of social credit system construction from the perspective of entrepreneurship and provides Chinese evidence that an effective government can help develop an efficient market. The findings are important for further promoting social credit system construction and for high-quality economic development.