The Influence Of The Number Of Siblings On Entrepreneurial Decision Making

With China’s economic development entering a new normal stage,innovationdriven economy has gradually become a new driving force for sustainable economic development.Innovation and entrepreneurship are very important for a country’s economic growth,whether in developed countries or in countries and regions with low levels of development.Entrepreneurs may encounter various difficulties in the process of starting a business.Since China is a "human" and "relationship-oriented" society,Chinese entrepreneurs often turn to their brothers and sisters and other close friends for help when they are in trouble.This paper examines the role of siblings in stimulating entrepreneurship and its influencing mechanisms.The main research methods and contents are as follows: First,based on the sample data of Chinese family tracking survey in 2016,the probit regression model is used to conduct empirical regression analysis on whether the number of brothers and sisters in the sample affects their entrepreneurial choice,and the endogeneity problem is tested.Second,it systematically analyzes the influence of the number of siblings on the choice of entrepreneurship,including four aspects:siblings as substitutes for financial institutions,the moderating role of social trust,promoting risk sharing,and jointly supporting parents.The probit model and OLS model are used to verify and analyze the four influencing mechanisms of siblings’ influence on entrepreneurship,and then corresponding conclusions are drawn.Based on theoretical analysis and empirical research,the following conclusions can be drawn: First,the number of siblings has a significant positive impact on the choice of individual entrepreneurship.If a person has more siblings,he is more likely to become an entrepreneur.Second,regarding the urban-rural and gender differences,the paper finds that the number of siblings in rural areas has a higher positive impact on entrepreneurship than in urban areas.And sibling support for women in starting a business was not significantly greater than for men.Thirdly,this paper analyzes the influence mechanism of brothers and sisters on entrepreneurial decision-making from four aspects,namely,brothers and sisters as substitutes for financial institutions,regulating role of social trust,promoting risk sharing and jointly supporting parents.This paper finds that brothers and sisters play an important role in providing credit in regions with underdeveloped financial level,and brothers and sisters can be used as substitutes for formal financial institutions.If the overall level of social trust is high,it will weaken the impact of the number of siblings on entrepreneurship.The more brothers and sisters there are,the more likely they are to promote risk sharing and personal risk tolerance,so as to promote entrepreneurial choice.However,families with fewer brothers and sisters face greater pension risks due to the heavy pressure to support their parents,leading to a relatively low probability of engaging in entrepreneurship,a high-risk occupation.Based on the above research,this paper puts forward the following policy suggestions: open fertility,promote the development of brothers and sisters,strengthen the feelings and cooperation between brothers and sisters;Raising the level of financial development and loosening credit restrictions;Improve the level of social credit;Improve the social security system and the insurance system;Especially in rural areas with a low level of development,and women with little family support should be more supported by the policy.