Research On The Impact Of Financial Support On Family Entrepreneurship

Innovation and entrepreneurship has become an important measure for high-quality economic development in China,and financial services are the main capital support for entrepreneurship.Exploring the impact of financial support on family entrepreneurship behavior has important practical significance.It can encourage the government to formulate more reasonable financial policies,promote financial institutions to provide better and more efficient services,improve the enthusiasm of “mass entrepreneurship”,and promote the development of small and medium-sized enterprises.Based on the data of Chinese Household Finance Survey,this paper studies the impact of financial support on household entrepreneurship decision-making and business performance,it finds out that: Financial support,whether formal financial support or informal financial support,has a significant positive impact on family entrepreneurial decision-making,and formal financial support has greater impact on entrepreneurial decision-making than informal financial support.Further analysis of the impact of financial support on entrepreneurial business performance has the same result,financial support has a positive impact on the scale of entrepreneurship and profitability,and the same formal financial support has greater impact on the scale of entrepreneurship and profitability than informal finance.From the urban and rural sub-samples,the impact of financial support on urban and rural family entrepreneurship activities is also significantly positive,and both formal financial support and informal financial support have a positive effect.Seen from the impact mechanism that credit constraints will inhibit the entrepreneurial decision-making,and the inhibiting effect of credit constraints on rural households is greater than that of urban households.It is effective that financial support influences on the entrepreneurial decision-making of households by alleviating credit constraints,and this transmission mechanism also exists in the later stage of entrepreneurial operation.In addition,male,risk preference,family size,family net worth and disposable income all have positive effects on entrepreneurship,while marriage,education and owning property have negative effects on entrepreneurship,and the influence of age on household entrepreneurial decision-making is “U” type,the impact on entrepreneurial performance is positive “U” type.By analyzing the empirical results,the following revelations or suggestions are proposed: First,the government should encourage financial innovation,increase the popularization of financial knowledge,encourage residents to master the required professional knowledge and skills,and build an atmosphere for mass entrepreneurship;Second,infrastructure construction for entrepreneurship should be improved,in particular,policy,financial and infrastructural support for rural household entrepreneurship should be strengthened to narrow the gap between urban and rural areas.Third,the government should take the lead in guiding private capital to invest in entrepreneurship on a regular basis,expand financing channels for entrepreneurship,solve credit constraints,and create a favorable environment for enhancing the initiative of“mass entrepreneurship and innovation”.