Based on data from industrial enterprises in cities at or above the prefecture level, this paper examines the impact of zombie enterprises on the activity and quality of urban entrepreneurship. The research finds that the degree of urban zombie has a significant inhibitory effect on the entrepreneurial activity and entrepreneurial quality of cities. Comparatively speaking, the degree of zombification has a greater inhibitory effect on entrepreneurial quality than entrepreneurial activity. Further research shows that zombie enterprises have a more prominent inhibitory effect on entrepreneurial activities in western cities and lower-level cities. State-owned zombie enterprises have more obvious inhibitory effect on urban entrepreneurship than private zombie enterprises. The influence mechanism shows that zombie enterprises inhibit entrepreneurship through financing constraint effect, innovation crowding out effect and resource allocation distortion effect. In the future, the government should minimize the excessive protection of state-owned zombie enterprises, and the governments of cities in the western region and cities with lower urban levels should further strengthen the effective disposal and management of urban zombie enterprises, establish and improve the exit mechanism of zombie enterprises, create a healthier urban entrepreneurial environment, and promote the improvement of the "quantity" and "quality" of urban entrepreneurship.