Synergetic Mechanism And Validity Measurement Of Farmer Entrepreneurship And Financial Services Innovation

Since the reform and opening up,the entrepreneurship of rural households in China has mainly followed the following two paths: one is the introduction of non-agricultural employment into non-agricultural enterprises,and the other is in land management.Under the inducement of economies of scale,it is necessary to reorganize agricultural entrepreneurship by transferring elements such as land,labor,and capital.For the two types of entrepreneurial farmers,they faced with the change from the original labor-intensive to capital-intensive production methods.Therefore,in the short term,there will be a large amount of funding gaps and the demand for financial services will be strong.In the situation where the supply of traditional financial services cannot effectively meet their financial needs,the demand for financial service innovation will be stimulated.Of course,if we insist on the provision of financial services,and ignore the role of farmers’ entrepreneurial ventures in the development of financial institutions,we cannot guarantee the sustainability of supply.To sum up,to achieve the sustainable development of farmers’ entrepreneurship and financial service innovation,we must ensure that their development can effectively promote each other’s development.Therefore,it is of great theoretical and practical significance to study the synergy between farmers’ entrepreneurship and innovation in financial services,whether it is to encourage farmers to start businesses,promote innovation in financial services,or promote structural reforms on the supply side and achieve rural revitalization.This paper follows the logical thinking of “theoretical research,empirical research,and policy research.” Based on reference to relevant classical theories,we define the three core concepts of entrepreneurship,financial service innovation and constract the research of this paper.Then,we constract the conceptual framework and the theoretical framework through balance analysis.By using history evolution analysis and current analysis of farmers’ entrepreneurship and financial services,the historical changes and constraints of the synergy clarified.By using the tendency score matching method,the mutual causality between farmers’ entrepreneurship and financial services innovation tested.We use propensity score matching method to test the mutual causality between farmers’ entrepreneurship and financial service innovation,and judge the synergy between the two.We comprehensively use the instrumental variable method,the instrumental variable quantile method,and the data envelopment analysis method to evaluate the performance of supply and demand at both ends of the financial service innovation,and further examine the effectiveness of the collaboration between the two.Finally,according to the research conclusions of this paper,and in light of China’s actual national conditions,we propose to promote farmer entrepreneurship,strengthen financial service innovation,and promote effective cooperation between the two dimensions,and propose policy recommendations to promote effective cooperation between farmers’ entrepreneurship and financial innovation.The main findings of this paper are as follows:(1)In theory,under the dual background of entrepreneurial households’ profitability improvement and reform of rural property rights assets,entrepreneurial farmers and financial institutions can achieve a balance and achieve coordinated development.The weakness of traditional agriculture and the lack of effective collaterals for farmers are the main reasons for the difficulty in forming equilibrium conditions for financial services contracts,which restricts the effective cooperation between farmers’ entrepreneurship and financial services.As farmers’ entrepreneurial ventures gradually change the weakness of traditional agriculture and promote the reform of rural property rights assets,farmers’ entrepreneurship and financial services innovation expected to reach a balance,thus forming effective collaboration.(2)From the historical evolution and current status of the development of China’s agricultural economy,both the planned economy period and the shift of the reform focus cannot form a synergy,since the beginning of the 21 st century,the synergy between the two has begun to form.During the period of planned economy,agriculture and rural areas became the remaining sources of industrial and urban economies,and it was difficult for them to form effective synergies.Since the reform and opening up,"small-scale farmers" production has supported the sustainable development of financial institutions,market-oriented reforms have induced financial institutions to become "non-agricultural",and it is still difficult to form effective coordination between the two.In the new era,entrepreneurial farmers have gradually emerged.The country has emphasized the financial investment in agriculture,rural areas and farmers.Preliminary synery between farmers’ entrepreneurship and financial service innovation has already formed,but it can be deeper.(3)Farmers’ entrepreneurship and financial service innovation have achieved a certain degree of synergy,but they need to be improved.In the future,government should try to increase financial service innovation support for entrepreneurial farmers and improve support methods.According to empirical results,the entrepreneurship of rural households to a certain extent has played a catalytic role in the development of financial services innovation.At the same time,innovation in financial services has also played a role in promoting farmers’ entrepreneurial performance to some extent.Farmers’ entrepreneurship and financial service innovation have formed a good synergy,but the synerfy can be deeper.In the future,we should increase financial service innovation support for farmers and improve support methods.(4)From the perspective of the demand subject,the financial service innovation has played a certain role in enhancing the entrepreneurial performance of rural households,but it needs to be strengthened.The innovation of financial services has a significant role in promoting farmers’ startup income and total income,but it has failed to increase entrepreneurial profits significantly.It may relate to the time lag effect of investment.In addition,the financial service innovation also has layered differences in the performance of entrepreneurship farmers,such as geographical differences and internal differences among farmers.(5)From the perspective of the supply subject,the performance of financial institutions is poor,and operational efficiency needs to be improved.The static analysis results show that the performance financial institutions is a little poor and needs to be improved.The dynamic analysis results show that performance financial institutions is increase during this period,but the increase is not significant.In addition,financial service innovation business also has stratified differences such as different types of institutions and differences between state-owned and local governments.Based on the research conclusions,this paper proposes the following policy implications:(1)Encourage farmers’ entrepreneurship and promote the continuous development of farmer’ entrepreneurship.The government should organically integrate the new urbanization strategy with the rural revitalization strategy,and further accelerate the “non-agriculturalization” of farmers and “involutionary” agriculture to encourage farmers to engage in non-agricultural entrepreneurship and agricultural entrepreneurship.Accelerate the construction of a policy system for fostering entrepreneurial farmers and improve the top-level design for appropriate scale operations.We will organically combine the development of various forms of scale operations with the extension of the agricultural industry chain to build a modern agricultural industrial system,a production system,and an operating system.(2)Increase innovation in rural financial services and build a complete rural financial service system.The government should deepen the reform of the rural property rights asset trading system,speed up the construction of the rural property rights asset trading market,and eliminate the current "difficulty in dealing with financial services innovation" and the "difficulty of disposal" of mortgages.Rationally handle the relationship between financial services innovation agencies and improve the current "two-rights" mortgage-based financial service innovation,and further promote the development of other financial services such as agricultural insurance,agricultural product futures,and agricultural industrial chain financing.,Build a complete financial service innovation system.(3)Take multiple measures to promote the effectiveness of the synergy between farmer’s entrepreneurship and rural financial service innovation.The government should regulate the development of entrepreneurial farmers through the establishment of a credit system for entrepreneurship farmers,the establishment of a financial system,and the improvement of financial capabilities.Accelerate the right ownership of rural assets,register and award certificates,and explore the empowerment of rural property rights assets.To realize the coordination and cooperation between entrepreneurial farmers,financial institutions and technology provision services,and establish information sharing mechanisms for entrepreneurial farmers,financial institutions and administrative departments.Accelerate rural financial legislation and establish an institutional system that promotes the synergy between farmer’s entrepreneurship and rural financial service innovation.Compared with existing studies,the possible innovations in this paper are in the following three aspects:(1)Studying the relationship between farmers’ entrepreneurship and financial service innovation based on a synergy perspective.From the perspective of research,existing research often focuses on the analysis of the impact of financial service innovation on farmers’ entrepreneurship from the perspective of a single perspective or the impact of entrepreneurial entrepreneurship on financial service innovation.They have not been able to study the synergy between the two based on a collaborative perspective.This article is based on the dual background of “non-farm households” of farmers and agriculture to “involution” and the country’s adjustment of agricultural and rural development strategies.The partial equilibrium conditions reached by financial service contracts are the breakthrough point,attempting to build a collaborative analysis of farmers’ entrepreneurship and financial service innovation.The framework and the use of a large amount of data for the empirical analysis of the effectiveness of the collaboration between the two have a certain reference value for follow-up research.(2)Constructing an index system of farmers’ entrepreneurial performance and financial service innovation,which lays a quantitative foundation for the evaluation of synergy effectiveness.From the perspective of the research content,based on the micro survey data,this paper organically combines the actual conditions of entrepreneurial development and financial service innovation of Chinese rural households.Based on a clear definition of the concept of entrepreneurship and financial service innovation for farmers,we selecte farmers’ entrepreneurial income,total household income,and farmers’ entrepreneurial profits as evaluation indicators for farmers’ entrepreneurial performance.We select whether to obtain financial services,the proportion of financial innovation services and the proportion of financial innovation services as an evaluation index of financial service innovation,which laid a measurement basis for measuring the synergy between farmer’s entrepreneurship and rural financial service innovation.(3)Examining the effectiveness of farmer entrepreneurship and financial service innovation synergy,which can provide empirical support for research themes.From the perspective of research methods,this paper uses propensity score matching method to test the mutual causality between farmers’ entrepreneurship and financial service innovation.In addition,uses the instrumental variable method to examine the impact of financial service innovation on farmers’ entrepreneurial performance,and uses data envelope analysis to evaluate the performance of financial innovation services for financial institutions,which in turn allowed a comprehensive perspective on the collaborative development of rural entrepreneurship and financial services innovation.Effectiveness and provide empirical support for research themes.