Research On The Impact Of Financial Literacy On Farmers’ Entrepreneurial Behavior

Entrepreneurship plays an important role in sustainable economic growth and development,and it is also the key to determining whether my country’s economy can successfully transform.The development of rural economy since the reform and opening up,non-agricultural employment has grown rapidly.In recent years,the country has paid more and more attention to the development of rural economy.In 2017,the "rural revitalization" strategy was first proposed to stimulate the vitality of rural economic development.The improvement of the external environment can bring more entrepreneurial opportunities,but at the same time,one’s own personal ability should also be considered.Financial literacy is an important part of the entrepreneur’s ability that cannot be ignored in the process of starting a business,and it will have a certain impact on entrepreneurial behavior.Therefore,studying the impact of financial literacy on entrepreneurial behavior from the perspective of family has important theoretical and practical significance for the development of small and medium-sized enterprises,providing more efficient and high-quality services to financial institutions,and formulating more reasonable entrepreneurial encouragement policies for the government..This paper uses the Chinese household financial survey data to measure the financial literacy of farmers,and uses factor analysis to construct the financial literacy index system of farmers.Referring to the previous literature,financial knowledge and financial skills are used to measure financial literacy.In the empirical analysis,the probit model is mainly used to test the impact of financial literacy on farmers’ entrepreneurial decision-making and entrepreneurial motivation.According to the educational level of the respondents,heterogeneity analysis is conducted to explore the impact mechanism of financial literacy on farmers’ entrepreneurial behavior.Finally,the following conclusions are drawn:first,financial literacy has a positive impact on farmers’ entrepreneurial decision-making and entrepreneurial motivation,and the results of financial knowledge and financial skills are both significant at the 1%confidence level;second,financial knowledge and financial skills will have a certain impact on the entrepreneurial behavior of farmers.The marginal effect of financial literacy is larger than the financial skills,and the effect of financial literacy is more obvious;third,financial literacy also affects farmers’ entrepreneurial behavior through credit constraints,and farmers with higher levels of financial literacy are more likely to obtain the support and ease the constraints of funds,thereby increasing the probability of entrepreneurship.Through empirical analysis,this paper puts forward the following suggestions:first,improve the financial literacy level of farmers,and rely on the cooperation between the government,institutions and schools from the macro level to comprehensively improve the financial literacy level of farmers.Financial groups carry out learning and self-improvement in financial literacy.The second is to strengthen the relationship between farmers’ financial literacy education and entrepreneurship.The third is to improve financial services,enhance credit services,provide targeted personalized services for entrepreneurs,and increase the probability of starting a business.