Research On The Impacts Of Digital Financial Inclusion Development On Innovation And Entrepreneurship In Western China

Digital inclusive finance is an important tool to alleviate the financing exclusion of low-income groups.Innovation and entrepreneurship,as an important measure to promote economic development,is an endogenous driving force for the high-quality development of China’s economy.However,the western region has a unique geographical location where the accessibility of traditional inclusive finance outlets falls far short of expectations,and the dilemma that financing is difficult and expensive for SMEs and other dual-innovation subjects still exists.Therefore,compared with other regions,the development of innovation and entrepreneurship in the western region is relatively lagging behind.The development of digital inclusive finance has greatly expanded the reachability of financial services,and the problem of difficult and expensive financing for SMEs and other dual-innovation subjects may be alleviated.Therefore,it is important to explore how digital inclusive finance in the western region affects the development of innovation and entrepreneurship,and to promote the western region’s economy toward high-quality development.Based on an overview of the concepts related to digital inclusive finance and innovation and entrepreneurship,this paper theoretically explains the relationship between finance and innovation and entrepreneurship,and obtains the basic conclusion that digital inclusive finance is an important factor influencing the development of innovation and entrepreneurship in the western region.First,the long-tail theory and technological innovation theory show that the development of digital inclusive finance can better absorb customers who originally did not enjoy the financial services provided by formal financial institutions into the service scope of formal financial institutions and improve the technological innovation output of enterprises.Second,combined with transaction cost theory shows that the development of digital inclusive finance in the western region makes up for the lack of traditional financial coverage,frees SMEs and low-income groups from geographical and spatial constraints through digital channels,greatly reduces various types of transaction costs,alleviates the external financing constraints of dual-innovation subjects,and promotes the improvement of enterprise innovation level.Third,it is known from the theory of information asymmetry that digital inclusive finance can effectively alleviate the degree of information asymmetry through digital technology,fill the shortcomings of traditional inclusive finance,enhance the coverage of digital credit,relieve the difficulties of financing and high financing costs of SMEs,and to a certain extent,ensure that the financing needs of SMEs and other disadvantaged groups in the process of entrepreneurship can be met,thus promoting innovation and This will,to a certain extent,ensure that the financing needs of SMEs and other disadvantaged groups in the process of entrepreneurship are met,thus promoting innovation and entrepreneurship.The results of the analysis of the current situation of digital inclusive finance development in the western region and the development of innovation and entrepreneurship in the western region show that although the level of digital inclusive finance development in the western region has improved rapidly in the past ten years,there is still a significant gap between the development of digital inclusive finance in the western region and the national average and other regions,and digital inclusive finance in the western provinces shows an uneven development trend.At the same time,both the breadth of coverage and the depth of use and digitalization are lower than the national average and the development level of other regions.Moreover,although the innovation and entrepreneurship environment in the western region has been improving in recent years and the level of innovation and entrepreneurship has been rising,the foundation of innovation and entrepreneurship in the western region is still relatively weak,and there is still a significant gap between the level of innovation and entrepreneurship in the western region and the national average and other regions,both in terms of the total score of innovation and entrepreneurship and in terms of the sub-dimension scores.At the same time,innovation and entrepreneurship in the western provinces also show an unbalanced development distribution pattern.Based on the data of relevant cities in the western region from 2011 to 2019,a regression analysis of the impact of digital inclusive finance on innovation and entrepreneurship in the western region was conducted using a double fixed-effect model.The results show that,firstly,there is an incentive effect of digital inclusive finance development on innovation and entrepreneurship in the western region;secondly,it is not enough to fully utilize the promotion effect of digital inclusive finance on innovation and entrepreneurship in the west just by increasing the degree of digitalization,and only by continuously improving the breadth of digital inclusive finance coverage and depth of use on the basis of digitalization can we promote the development of innovation and entrepreneurship in the west.Based on the above findings,countermeasure suggestions to promote the development of digital inclusive finance in the western region to promote the balanced development of innovation and entrepreneurship are proposed at both government and financial institution levels.Specifically,they include: increasing policy support to promote the development of digital inclusive finance in the western region;reasonably allocating financial resources to promote the balanced development of innovation and entrepreneurship in the western region;improving the breadth of digital financial coverage in the western region to enhance the reach of digital inclusive finance;encouraging the participation of dual-innovation subjects in digital inclusive financial services to improve the depth of use of digital inclusive finance in the western region,with a view to promoting the development of digital inclusive finance in the western region The aim is to promote the development of digital inclusive finance in the western region,improve the environment for innovation and entrepreneurship,thereby promoting the balanced development of innovation and entrepreneurship in the western region and facilitating the economic development of the western region towards high-quality development.