The Impact Of Banking Structure On Household Entrepreneurship

China’s economy has shifted from the stage of high-speed growth to the new normal stage of high-quality development,and innovation and entrepreneurship are key factors affecting the high-quality development of China’s economy.With the support of a series of innovation policies,family-based forms of entrepreneurship have emerged,and entrepreneurship has become an important choice for residents to increase their family income,improve their social status and realize their self-worth.However,entrepreneurs still face obstacles such as difficulties in financing and insufficient willingness to start a business.As an important financial intermediary of China’s financial system,the banking industry has a non-negligible role in supporting the development of small and medium-sized enterprises,promoting the development and growth of the private economy,and increasing the willingness of households to start their own businesses.Therefore,it is necessary to study the impact of banking industry structure on household entrepreneurship.Considering the pivotal position of the banking industry in China’s financial system and the economic reality of the rapid development of small and medium-sized banks,we take the structure of the banking industry as an entry point and focus on the impact of the banking industry structure on household entrepreneurial behavior.First,the comparative advantages of small and large banks on household entrepreneurship are analyzed theoretically,the possible effects of banking sector structure on household entrepreneurship are analyzed,and the impact mechanisms are subdivided into increasing credit availability and improving financial literacy,and the corresponding research hypotheses are proposed.Second,in the empirical analysis,since the explanatory variable"entrepreneurship" is a binary variable,the Probit model is used to estimate the impact of banking sector structure on household entrepreneurship.Further,net household business income and household business assets are used as variables to measure entrepreneurial performance,and entrepreneurship is classified as survival and opportunity entrepreneurship according to entrepreneurial motives to analyze the impact of banking sector structure on different types of entrepreneurship.To avoid the endogeneity problem on the empirical structure,the mean value of banking sector structure in other cities at the same level of economic development is selected as the instrumental variable for endogeneity testing.In the mechanism of action analysis,a mediated utility model is used to test the specific path of the banking sector affecting household entrepreneurship in terms of both credit availability and financial literacy.In the heterogeneity analysis,the impact of banking sector structure on household entrepreneurship is analyzed in terms of urban-rural,education level,wealth level,and banking sector competition,respectively.Finally,robustness tests are conducted by replacing the empirical method,replacing the explanatory variables and replacing the main explanatory variables to ensure that the results are true and reliable.Through the analysis of the empirical results,this paper draws the following conclusions:(1)The increase in market share of small and medium-sized banks not only significantly increases the probability of participation in household entrepreneurship,but also has a significant contribution to entrepreneurial performance.In addition,the increase in the share of small and medium-sized banks significantly contributes to self-employment,artisanal and opportunistic entrepreneurship.(2)Banking sector structure plays a mediating role by increasing the availability of credit and enhancing the financial literacy of entrepreneurs,thereby promoting the probability of household entrepreneurial participation.(3)The impact of banking sector structure on household entrepreneurship differs across urban and rural areas,across wealth levels,and across levels of competition in the banking sector.Compared with households in urban,high wealth level and low banking competition regions,the promotion of household entrepreneurial behavior is more pronounced for households in rural,low wealth level and high banking competition regions by increasing market share of small and medium-sized banks.Finally,this paper not only enriches the relevant literature on the relationship between banking sector structure and entrepreneurship,but also explains the underlying mechanism of the impact of banking sector structure on household entrepreneurship,which provides empirical support for relevant policy formulation and the development of small and medium-sized banks.