Can Digital Financial Inclusion Promote Farm Entrepreneurship?

In 2020,China’s poverty alleviation work will achieve comprehensive success,and promoting the rural revitalization strategy will become the next stage of the task of achieving common prosperity.To achieve common prosperity,the most arduous and arduous task is in the countryside,and the greatest potential and stamina are also in the countryside.By the end of this year,the No.1 central document of the Central Committee of the Communist Party of China has emphasized the work of "agriculture,rural areas and farmers" for 20 times,which is regarded as the top priority of the work by the whole Party Central Committee,and the key is to promote farmers’ income through multiple channels.Entrepreneurship,as the foundation of development and enriching the people,can effectively improve the income level of farmers,drive agriculture and rural development forward,and has important practical significance for rural revitalization and even common prosperity.However,farmers still face various constraints in the process of entrepreneurship,such as credit constraints,low levels of financial literacy,and severe financial exclusion.The integration of inclusive finance with digital technology and the Internet has opened a new chapter in the development of digital inclusive finance.With its characteristics of wide coverage,low service costs,and high service efficiency,it has included more vulnerable groups in the financial system.While providing financial services,it can effectively improve the level of financial literacy and bring more possibilities to promote farmers’ entrepreneurship.In the process of promoting the implementation of the rural revitalization strategy and achieving common prosperity,it is extremely necessary to explore ways to promote farmers’ entrepreneurship and improve their income levels.This paper first analyzes the mechanism of digital inclusive finance affecting farmers’ entrepreneurship on the basis of combing relevant literature at home and abroad,then constructs probit model to empirically explore the impact of digital inclusive finance development on farmers’ different forms of entrepreneurship,further empirically test the indirect mechanism of digital inclusive finance on farmers’ entrepreneurship,and finally constructs financial literacy indicators,Explore whether there is a moderating effect of digital inclusive finance on farmers’ entrepreneurship.The research results indicate that: firstly,the development of digital inclusive finance can significantly promote farmers’ industrial,commercial and other entrepreneurship,but cannot promote farmers’ agricultural entrepreneurship.Secondly,digital inclusive finance can only partially alleviate credit constraints,regulate income distribution,promote economic growth,and increase risk preferences to promote farmers’ entrepreneurship.Thirdly,the improvement of financial literacy can significantly promote farmers’ entrepreneurship in industry,commerce,agriculture,and other fields,and the improvement of financial literacy can promote the sub dimension of digital inclusive finance to better promote farmers’ entrepreneurship.Based on the above research results,the following policy recommendations are proposed: First,traditional financial institutions and digital financial institutions should cooperate to build a customer credit evaluation system,accelerate the flow of information,and improve the efficiency of credit evaluation.Secondly,relevant departments have introduced laws and regulations on the supervision of digital inclusive finance,placing it under supervision for healthy development.Thirdly,increase the investment and promotion of digital inclusive finance in remote areas in the western and central regions,and improve the infrastructure construction of digital inclusive finance in underdeveloped areas.Fourthly,innovate agricultural insurance services,provide agricultural related insurance for farmers,and reduce agricultural business risks.Fifth,increase the possibility of farmers’ understanding of financial knowledge through multiple channels,and carry out financial literacy popularization and improvement activities in rural areas,using various incentive methods to encourage farmers to participate and improve their financial literacy.