| At present,China is facing severe employment pressure.China is rich in labor resources,and the employment opportunities provided by cities and towns are limited.the expansion of college enrollment has led to an increase in the number of graduates with advanced degrees,while some enterprises on the demand side have stopped recruiting due to the downward pressure of the economy.The entrepreneurial spirit and comprehensive ability are the important factors for the success of the entrepreneur,but the entrepreneurial failure risk is high,not everyone has the conditions for the success of the entrepreneur.In this social context,this paper studies family entrepreneurship from the perspective of cognitive ability and risk preference.Based on the literature and Theoretical Research,this paper describes the risk preference and cognitive ability of urban and rural family respondents and the family entrepreneurship situation in detail,based on the CFPS 2018 survey data,and the logit model is used to analyze the relationship among them.In addition to risk preference and cognitive ability as explanatory variables,respondents’ demographics variables were included in the study for better results.The results show that,in general,risk preference has a greater impact on urban families,and cognitive ability has a greater impact on rural families.The rural families aged from 16 to 25 and in the East and middle of China showed a more significant influence on the probability of starting a business.The rural families showed a negative sign of the interaction between the risk preference and mathematical ability.In addition,from the descriptive statistics,the entrepreneurial probability of urban households is significantly higher than that of rural households,and the entrepreneurial probability of households with men as respondents is higher than that of households with women as respondents.The policy suggestions of this paper are as follows: firstly,we should advocate rational entrepreneurial behavior,secondly,we should increase educational input to rural families,thirdly,we should increase financial support for entrepreneurship,and fourthly,we should continuously optimize the business environment. |
