A Study On The Imbalance Between Supply And Demand Of Peasant Workers Returning Hometowns To Start A Business And The Response To Investment Risk

The CPC Central Committee and the State Council attach great importance to peasant workers returning hometowns to start businesses.The report to the 19 th CPC National Congress proposed that promoting the integrated development of primary,secondary and tertiary industries in rural areas,supporting and encouraging farmers to find jobs and start businesses,and expanding channels for increasing their incomes.In January 2018,the State Council Executive Meeting studied to determine the further support for migrant workers and other personnel to starting up business when they returning to the countryside,specially issued the document The Opinions about Further Support Migrant Workers and Other Personnel Returning to the Countrysides on Entrepreneurship,made a clear definition that the migrant workers are the precious resources of home business,they are becoming the new force of China's county economic development and bellwether of rural revitalization.The peasant workers who return to country starting businesses will help to activate rural resource elements,foster new drivers of economic development,and promote farmers' employment and income.It is an important force in developing county economy and an important part of implementing rural revitalization strategy.However,under the current system and mechanism,especially under the background of the new normal economy,peasant workers face many obstacles when they return their hometowns to start businesses,among which the lack of funds is a common problem.At present,the capital of peasant workers returning hometowns to start business mainly comes from the money they earned working in the city,the support from relatives and friends,the loans from formal financial institutions such as banks and rural credit cooperatives,the special government project and private loans.Among the above ways of fund supply,due to the advantages of low interest rate,low risk and wide branches coverage,bank loan has become the most ideal fund supply ways for peasant workers returning hometowns to start business.There exists some problems with other forms of fund support.For example: the money that peasant workers earned in the city are far from meeting the capital needs of starting a business;the financing costs of the support from relatives,friends and private lending are relatively high;the coverage of the special financial support form the government is limited and the application conditions are strict.On the one hand,banks are unwilling to loan to peasant workers to start businesses.On the other hand,even if banks will lend money to peasant workers,the amount and term of the loan cannot meet the needs of peasant workers.As a result,there is a serious imbalance between the supply and demand of entrepreneurial capital for peasant workers.The loan market with less supply than demand makes peasant workers always face the problem of "financing difficulty" when they returning home to start their own businesses.Therefore,it is of great theoretical and practical significance to deeply study the problem of entrepreneurial capital support for peasant workers returning home to start business,deeply analyze the deep reasons for the difficulty of entrepreneurial financing,explore ways to solve the problem of entrepreneurial capital for peasant workers,and promote the healthy and sustainable development of peasant workers returning home for entrepreneurship.Also it is important to accelerate the construction of new-type urbanization and boost the implementation of rural revitalization strategy.First of all,on the basis of literature review of peasant workers returning to their hometowns to start businesses and rural financing,this paper carried on the overall sample analysis and contrast analysis of county and country samples on the entrepreneurial behavior of peasant workers and the current situation of financial support to them.The results show that the main reason for peasant workers returning hometowns to start businesses is to take care of families and the subjective factors of individual,while the government's policy environment has had little influence on entrepreneurship.The majority of peasant workers who return hometowns to start businesses are young and middle-aged married men,and those with high school education or above account for a higher proportion.Most of the business they set up are self-employed or partnership enterprises.The enterprises are small in scale and most of them are micro enterprises.They are mainly engaged in primary industries such as agriculture,forestry,animal husbandry,fishing and aquaculture,manufacturing,wholesale and retail,and construction and decoration industry.The enterprises founded by peasant workers generally have problems such as small scale,weak ability to withstand risks,low entrepreneurial ability,inadequate implementation of entrepreneurial training,the environment for returning to their hometowns to further optimize,lack of venture capital,and insufficient financial support.The current situation of financial support for peasant workers represented that the government support is insufficient and uneven,the formal financial support is limited and not much,and the informal financial support is extensive but high cost.Secondly,this article describes the capital supply ways of peasant workers returning home for entrepreneurship from two aspects of formal finance and informal finance,summarizes the reasons of insufficient fund supply for peasant workers,that is: the narrow money supply channel,the imperfect of financial management system,unsound financial laws and regulations,lack of diversified financing guarantee insurance system,weakness of borrowers etc.At the same time,in this paper the characteristics of funding demand from peasant workers returning home for entrepreneurship are analyzed,the results show that peasant workers have a strong willingness to return home to start business and have high financing costs,their subconscious financing needs prefer bank loans,while the actual fund support mainly comes from their own capital and the support from parents and relatives.Then this paper built a fund demand model that affects the entrepreneurship of returning hometowns by drawing lessons from the relevant academic research results,doing the empirical test by using multiple logistic regression analysis method.It is concluded that the most significant factors impacting on money demand are as follows: the peasant workers' individual characteristics,such as culture level;the working experience in the city,such as the industry which the peasant workers engaged in;the status of the enterprise,such as business scale,form and the cash flow;industry environment such as sectors condition;policy environment,such as policy support.However,there are heterogeneity differences in the influencing factors of entrepreneurial money demand ween county and rural entrepreneurship.Then,Combined with the statistics of the balance of deposits and loans of financial institutions in rural areas of China and Dabie Mountain in Hubei and Anhui in recent years,this paper judged the supply and demand of funds for peasant workers returning home to start businesses.The results show that there exists not only obvious imbalance between supply and demand of funds,but also structural imbalance of financial institutions,financial products,credit line and credit term in rural areas of China.In order to explore the reasons for the imbalance between supply and demand of venture capital in the process of peasant workers returning homelands to start business,this paper makes a detailed analysis of the costs and benefits of peasant workers returning hometowns to start business under certain conditions and risk conditions,proving that the net benefits of entrepreneurship completely depends on the costs of producing and selling products under risk conditions and other costs of starting a business in the local area.Then it is revealed that the main reasons for the imbalance of supply and demand of venture capital are fund supply risks,such as loans use risk,moral risk and the risks in the course of business operation.The risk of loan use and moral hazard can be prevented or reduced by establishing scientific credit evaluation system and strengthening credit supervision and other measures.However,the investment risks faced by enterprises in the process of entrepreneurship are free from the supervision and control of banks.Therefore,entrepreneurial risk has become the fundamental source of risk for the imbalance of entrepreneurial capital support for peasant workers returning home to start business.From the perspective of system theory,this paper identifies and analyzes the management risk,financial risk,technology risk,production risk,market risk and policy environment risk of peasant workers returning to hometowns to start their own business.According to the principles of comprehensiveness and representativeness,independence and dynamism,feasibility and operability,the risk evaluation index system of returning home entrepreneurship of peasant workers is designed and constructed the risk assessment model of returning home business of peasant workers.Using ordered Logistic regression and ordered Probit regression on the empirical analysis.It is concluded that some factors have a significant impact on the risk of returning home entrepreneurship of peasant workers,such as the stability of the entrepreneurial team and the staff,the guarantee degree of the enterprise's working capital,the market demand of the enterprise's products,the speed of the enterprise's technology update,the supply of raw materials,the surrounding infrastructure of the enterprise,the education level etc.Moreover,the factors influencing the risk of returning home entrepreneurship of peasant workers in county and rural areas are heterogeneous.In the end,according to the above research,this paper,on the basis of drawing lessons from domestic and foreign financial support practices and experiences in rural finance and loan of small and medium-sized enterprises,put forward a breakthrough path from the necessity and feasibility of alleviating the shortage of venture capital and high-risk dilemma for peasant workers returning home,that is venture investment insurance for peasant workers returning home.The venture investment insurance is an investment insurance strategy jointly funded by the government,commercial banks and rural returning migrant workers.The government,commercial banks,insurance companies and rural returning migrant workers share the risks.On this basis,this paper comprehensively introduces and elaborates the specific content of venture capital insurance for peasant workers returning home from the aspects of policy elements,insurance operation mechanism and insurance process.From the perspectives of the government,commercial banks and insurance companies,this paper puts forward countermeasures and suggestions to promote the effective implementation and healthy operation of venture investment insurance for peasant workers returning to their hometowns.The countermeasures and suggestions are as follows: strengthening government support,creating a good external environment,perfecting the bank supervision mechanism,carrying out risk control throughout the whole process,innovating the ability of insurance service and improving the level of insurance governance.