Research On The Impact Of Digital Inclusive Finance On Rural Household Entrepreneurship

With the outbreak of the new crown epidemic,the employment situation in China’s labor market is becoming more and more severe.Self-employment can promote economic growth,absorb urban and rural labor and ease employment pressure.Although our government has introduced many preferential policies to support farmers’ entrepreneurship,problems such as capital shortage,insufficient financial awareness,and imperfect construction of network communication engineering infrastructure still restrict farmers’ entrepreneurship.As early as 2015,China started to implement the inclusive finance policy with the aim of providing effective financial products and services to the needy groups,which has promoted the development of the rural financial system to a certain extent,but has not effectively solved the problem of rural credit constraints.With the development of digital technology,digital inclusive finance has gradually broken the limitations of time and space,improved the coverage of rural financial services at a lower cost,increased the financial accessibility of farmers,and provided high-quality technology,products and service support for their entrepreneurship.The No.1document of the Central Government in 2021 proposed for the first time the development of digital inclusive finance in rural areas and encouraged cities and counties to build a database of agricultural-related credit information shared within the domain to effectively solve the credit constraint problem faced by farmers in financing their business ventures.By thoroughly examining the evolution of digital inclusive finance and its influence on farmers’ entrepreneurship,we can more effectively foster digital inclusive finance to benefit farmers and invigorate their entrepreneurial zeal,thereby fostering a prosperous rural entrepreneurial atmosphere,augmenting farmers’ income,and advancing village economic growth,and realize the benign and sustainable development of digital inclusive finance.Firstly,by combing the relevant domestic and foreign literature and analyzing the current situation,this paper puts forward the article hypothesis based on the theoretical foundation,and then based on the 2019 CHFS data and the matching digital inclusive finance index,the impact of the total digital inclusive finance index and its sub-indicators on farmers’ entrepreneurship is successively empirically investigated using the Probit model;secondly,this paper further investigates the digital inclusive finance on farmers’ entrepreneurship Finally,the heterogeneity analysis,endogeneity test and robustness test were conducted on the overall regression results.The results show that:(1)both the total digital inclusion finance index and its sub-indicators have a positive and significant effect on farm household entrepreneurship.Each unit increase in the total digital inclusion finance index is associated with a 0.182 percentage point increase in the likelihood of farm household entrepreneurship;(2)digital inclusive finance development mainly promotes farmers’ entrepreneurship by increasing the availability of formal credit,improving farmers’ financial knowledge and promoting the use of electronic payment;(3)the effects of digital inclusive finance development on farmers’ entrepreneurship vary depending on the geographical location,age and education level of the respondents.(3)There are also some differences in the effects of digital financial inclusion development on entrepreneurship due to the geographical location,age,and education level of respondents.This paper uses the instrumental variable Probit model to test the endogeneity between digital inclusive finance and farmers’ entrepreneurship and tests the robustness of the empirical analysis and the results show that the above empirical results are robust.Finally,based on the findings of this paper,the following policy recommendations are proposed:(1)improve the availability of formal credit to farmers and regulate the rural credit system;(2)improve the financial literacy of farmers and gradually eliminate the "digital divide";(3)strengthen the construction of rural payment system and empower rural markets with technology.