The Impact of Financial Support on Household Entrepreneurship in China

Bingxia Xu; S M Ferdous Azam

doi:10.62051/ijsspa.v3n1.25

Authors

Bingxia Xu
S M Ferdous Azam

DOI:

https://doi.org/10.62051/ijsspa.v3n1.25

Keywords:

Financial Support, Entrepreneurship, Formal Financial Support, Informal Financial Support

Abstract

Financial support plays a key role in promoting household entrepreneurship in China. This study aims to explore the impact of financial support on household entrepreneurship in China, focusing on the differences between formal and informal financial support. This study combines the use of China Family Panel Studies (CFPS) data with analysis using the Probit model to reveal the relationship between financial support and household entrepreneurship. The results show that financial support has a significant positive impact on household entrepreneurship in China, and the extent of the impact of informal financial support is greater than that of formal financial support. The findings have practical implications for Chinese household entrepreneurs, financial institutions and policy makers. Entrepreneurs can choose the appropriate form of financial support according to their own situation, while financial institutions and the government can consider strengthening financial education and knowledge dissemination, providing entrepreneurial subsidies and support, and offering more flexible financing channels to support the development of family entrepreneurship in China.

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