| The policy of "mass entrepreneurship and innovation" has promoted the rise of innovation and entrepreneurship activities in China,and entrepreneurs have become the leaders of China’s sustainable economic development under the "new normal".Entrepreneur’s own ability is not only the initiative of innovation,but also the main body and key to promote economic development.The existing literature shows that the financial knowledge level of entrepreneurs is one of the important capabilities of entrepreneurs,which will have an important impact on entrepreneurial activities.However,how to influence and how to influence it need to use micro data for in-depth study.Based on the data of China Household Finance Survey(CHFS)in 2017,this paper constructs financial knowledge measurement indicators,and then uses probit,IV probit and OLS models to empirically analyze whether residents’ different levels of financial knowledge have an impact on their choice of entrepreneurship and success level of entrepreneurship,and analyzes the direction and extent of its impact.At the same time,it also analyzes the role of credit constraint transmission in the impact of financial knowledge on entrepreneurial decision-making,as well as the differences between urban and rural areas.The following conclusions are drawn:(1)The improvement of financial knowledge level can significantly promote the family to participate in entrepreneurial activities,and the role of objective financial knowledge is more obvious than that of subjective financial knowledge on the probability of residents choosing entrepreneurship.With the improvement of objective financial knowledge,the probability of residents choosing to start a business is 0.9% higher,while with the improvement of subjective financial knowledge,the probability of residents’ starting a business is only 0.8%.From the perspective of urban and rural areas,the impact of residents’ objective financial knowledge on their entrepreneurial choice is more obvious in urban areas.For every unit of subjective financial knowledge that urban residents increase,the probability of residents choosing to start a business is 1% higher,but only 0.6% higher in rural areas.(2)From the perspective of entrepreneurial success rate,objective financial knowledge has a greater impact on rural areas.For every unit of objective financial knowledge,the probability of rural residents’ successful entrepreneurship will increase by 3.9%,while that of urbanresidents will only increase by 1.9%.The subjective financial knowledge has a greater impact on the success rate of entrepreneurship in the city.For every unit of subjective financial knowledge improved,the probability of rural residents’ successful entrepreneurship will be increased by1.5%,while that of urban residents will be increased by 2.5%.In terms of family net assets,both objective and subjective financial knowledge have a greater impact on the city.For every unit of objective financial knowledge level improved,the net assets of rural entrepreneurial households changed by 33.64%,while that of urban households changed by 39.09%.For every unit of subjective financial knowledge increased,the net assets of rural entrepreneurial families will change by 28.40%,and that of urban entrepreneurial families by 29.09%.(3)In addition,the study also found that financial knowledge can affect the entrepreneurial behavior of residents through the impact of credit constraints.For every unit with higher objective financial knowledge,the probability of rural residents having credit constraints is reduced by 3.9% and that of urban residents by 7.8%.In other words,the higher the level of financial knowledge,the lower the degree of credit constraints.Lower credit constraints can make residents have lower financing costs,smaller capital constraints,and thus more preference for entrepreneurship.There are two main innovations in this paper.First,this paper uses micro survey data to conduct empirical research,and obtains more micro based evidence,which shows that the popularization of financial knowledge has practical significance for innovation and entrepreneurship development;second,in the design of financial knowledge measurement indicators,this paper further subdivides financial knowledge to explore its impact on entrepreneurial behavior,in order to further enrich the theoretical research of family finance. |
