The Impact Of Digital Finance On The Re-establishment Of Entrepreneurial Failure Families

The "mass entrepreneurship and innovation" strategy is helpful to promote the adjustment of China’s economic structure and foster new momentum for economic development.It is an important starting point to realize the construction of an innovative country and common prosperity.Since the State Council first proposed the "mass entrepreneurship and innovation" strategy in 2015,how to promote mass entrepreneurship and innovation has become the focus of successive government work reports.Especially under the background of economic downward pressure,entrepreneurship has become an important support for "steady growth" and "guaranteed employment".However,entrepreneurial activities are highly uncertain and the probability of failure is high.In contrast with entrepreneurs who have not experienced entrepreneurial activities,families who have experienced entrepreneurial failures have a deeper understanding of the nature of entrepreneurial activities,forming a knowledge base and corresponding capabilities in dealing with various problems.If they can overcome their fears and make a comeback,they will be able to improve the quality of entrepreneurial activities.The high-risk nature of entrepreneurial activities determines that the traditional financial model does not match it.Digital finance has specific advantages in easing financing constraints,improving risk management capabilities and enhancing financial literacy.Therefore,exploring the use of new forms of digital finance to promote entrepreneurs to "make a comeback" has become a feasible choice for the current entrepreneurial policy.Studying the impact of digital finance on family’s willingness and performance to restart a new business and clarifying the internal logic and impact mechanism of the two will help to formulate more targeted policies and programs for continuous entrepreneurship.Based on the above background,using the data of Peking University Digital inclusive finance Index and China Household Tracking Survey,this paper investigates the impact of digital finance on the willingness and performance of failed households to restart a new business and its mechanism.The results show that:(1)Digital finance has a significant effect on the family’s willingness and performance to restart a new business,among which the influence of breadth,depth and degree of digitalization are significant;(2)The promotion effect of digital finance is universal,especially for families with low material capital and low social capital.The function of digital finance requires the investment of human capital from the start-up families,and the promotion effect on the families with high human capital is more significant.In urban areas,the promotion of digital finance is more significant;(3)The intermediary mechanism test found that the intermediary effect of financing constraints is not significant.Digital finance mainly affects the willingness and performance of re-establishment through the ability of risk management and financial literacy;The moderating effect found that the level of competition in regional financial industry,the level of regional public service and the level of regional legalization had an impact on the digital finance and the re-establishment of failed households.Therefore,the government should encourage the expansion of digital inclusive finance’s product functions,improve the external environment for re-entrepreneurship,and promote high-quality continuous entrepreneurship.According to the research conclusions,the policy implications are put forwarded as followed:(1)The digital finance function should be improved,the risk management function should be deepened on the basis of the traditional financing function,and more financial innovation services should be launched by taking advantage of the high accessibility of digital technology,in particular,the inclusive insurance products should be increased,and the insurance depth and insurance density should be increased,so as to meet the internal needs of the comeback and activate high-quality entrepreneurial activities.(2)Accelerate the construction of supporting infrastructure for digital inclusive financial services,improve the conditions for the use of digital finance,especially increase the construction of digital infrastructure in rural areas,narrow the gap in digital infrastructure between regions,and let more residents in more regions access to digital financial services,thus improving the external environment for digital inclusive finance to support families who fail to restart businesses again.(3)Create a tolerant entrepreneurial atmosphere,reduce the stigmatization impact of entrepreneurial failure,understand the hidden value of entrepreneurial failure,guide entrepreneurs to overcome the fear of entrepreneurial failure,thereby reducing the potential cost of entrepreneurial failure,and promote families with entrepreneurial failure to achieve continuous entrepreneurship.