Research On The Impact Of Digital Financial Inclusion On Rural Entrepreneurship

Since socialism with Chinese characteristics entered a new era,China’s economy has shifted from high-speed growth to high-quality development.In turn,the principal contradiction facing China has become the contradiction between unbalanced and inadequate development and the people’s ever-growing needs for a better life.But one of the main manifestations of imbalance exists between urban and rural areas,urban and rural economic development level,resident income gap is obvious.Faced with this problem,the report of the 19 th CPC National Congress in 2017 officially put forward the rural revitalization strategy.The core of rural revitalization lies in the development of rural industries,which needs to constantly enhance the activity of rural farmers’ innovation and entrepreneurship.At present,one of the biggest problems faced by farmers in their entrepreneurial activities is the difficulty in obtaining required financial services.Therefore,in order to support the entrepreneurial activities of farmers,it is necessary to provide equal and diversified financial services to meet their needs,increase the financial access of rural people,promote the entrepreneurial activities of farmers,promote the development of rural industries,improve farmers’ income,and narrow the gap between urban and rural areas.This paper is based on the guidance of Marxism related financial theory and equality view,with Timmons’ classic entrepreneurial model and financial exclusion theory as the analytical tools,based on the existing financial exclusion problem in rural areas,starting from Timmons’ three elements of entrepreneurship,and on the basis of summarizing the development process of Chinese peasant household entrepreneurship and group characteristics.This paper analyzes the constraints of financial literacy,entrepreneurial opportunity recognition and credit ability faced by Chinese farmers in entrepreneurship.On this basis,from three dimensions: the improvement of farmers’ financial literacy,the expansion of social relations,and the change of financing ability,the internal mechanism of digital inclusive finance on the change of farmers’ entrepreneurial constraints is deeply studied.This paper selects the relevant data of China’s household finance survey and the digital inclusive finance development index jointly researched by Peking University and Ant Technology Group.By establishing probit model,the conclusions of theoretical analysis are verified.Through theoretical analysis and empirical verification,this paper draws the following conclusions: First,the development of digital inclusive finance can significantly promote the entrepreneurial activities of rural households in China.Second,digital inclusive finance can improve the financial literacy of entrepreneurial farmers;Expand the social network of entrepreneurial farmers to improve the entrepreneurial opportunity identification ability of entrepreneurs;To change the credit access ability of entrepreneurial farmers and promote their entrepreneurship.Thirdly,the development of digital inclusive finance has heterogeneity in the entrepreneurial activities of rural households.From the perspective of region,the development of digital inclusive finance has a significant promoting effect on the entrepreneurial activities of rural households in eastern and central and western regions,and the influence is stronger in eastern regions.From the perspective of education level,The entrepreneurship of rural households with higher education level and those with lower education level are positively affected by the development of digital inclusive finance,and the entrepreneurship of rural households with higher education level is more affected.In view of the above conclusions,this paper puts forward the following policy suggestions to further promote farmers’ entrepreneurship.First,we need to strengthen policy support and improve the financial environment.Second,rationally allocate resources and formulate development strategies according to regions;Third,strengthen the construction of rural digital infrastructure and promote the development of digital inclusive finance;Fourthly,set up special policy support for farmers’ entrepreneurship,optimize the policy environment for rural entrepreneurship;Fifth,actively build interactive communication platforms for farmers to start businesses,and increase the entrepreneurial opportunities for farmers who are willing to start businesses;Sixth,actively carry out financial training for entrepreneurial farmers to improve their financial literacy.