Research On Digital Inclusive Finance,Financing Capability And Farmer Entrepreneurship

With the promotion of Rural Revitalization Strategy and the rapid development of rural economy,farmers’ entrepreneurship has gradually become the core driving force to increase farmers’ income and solve farmers’ employment problems.At the same time,the sustainable development of farmers’ entrepreneurship also needs a steady stream of capital investment.Therefore,how to solve the external financial support for farmers’entrepreneurship and improve their financing ability is a practical problem that needs to be solved at present and in the future.In recent years,with the continuous integration and development of Internet technology and the financial industry,it has changed the supply structure of traditional finance,forced the reform and innovation of traditional finance,and digital inclusive finance came into being.Digital inclusive finance services with financial institutions and Internet companies as the main suppliers improve farmers’ financial availability,reduce the threshold of financial services,and enable more farmers to enjoy low-cost formal financial services.In recent years,domestic scholars have conducted various studies on the relationship between the development of digital inclusive finance and farmers’ entrepreneurship,which also leads to a core problem to be solved urgently:how does the development of digital inclusive finance affect farmers’ entrepreneurial decision-making and entrepreneurial performance?This paper focuses on the intermediary variable of financing ability,trying to confirm the existence of the transmission path of "digital inclusive finance-financing abilityfarmers’ entrepreneurship".In order to accurately describe the relationship between the three,the paper expands the financing ability into two levels:formal channel financing ability and informal channel financing ability,and extends farmers’ entrepreneurial decision-making to farmers’ entrepreneurial performance,so as to comprehensively explore the impact of external financial environment and their own financing ability on farmers’entrepreneurship.In terms of research content,firstly,around the relationship chain between digital inclusive finance development,financing ability and farmers’entrepreneurship,the paper redefines the above related concepts,combs the literature on the economic consequences of digital inclusive finance development and farmers’financing ability at home and abroad,and explains the relationship between digital inclusive finance,financing ability and farmers’ entrepreneurship.Then,using the methods of literature combing and deductive reasoning,and using rural finance theory,information asymmetry theory,digital economy theory and priority financing theory,this paper deeply discusses the influence mechanism and effect of digital inclusive finance and financing ability on farmers’ entrepreneurship.Finally,taking the 2014-2018 China Household Tracking Survey(CFPS)and 2017 China Household Finance Survey(CHFS)as research samples,the paper makes an empirical test on the relationship between digital inclusive finance,financing ability and farmers’ entrepreneurship,in order to deeply explore the optimization mechanism of farmers’ entrepreneurship decision driven by digital inclusive finance and financing ability.On the basis of theoretical analysis and empirical test,the paper draws the following research conclusions:First,in recent years,China’s digital inclusive finance has developed rapidly,and the coverage,depth and digitization of digital inclusive finance have increased rapidly.Digital inclusive finance business involves various aspects such as network payment,internet loan.internet financing,network insurance,internet crowd financing,internet credit and so on.The rural digital inclusive finance model includes digital village credit mode,integrated digital inclusive finance platform mode,Internet plus supply chain finance mode,and electricity supplier+supply chain finance mode.The differences between regions in the overall index and various dimensional indexes of the development of digital inclusive finance in China are gradually narrowing,which has strong geographical penetration compared with traditional inclusive finance.The development of digital inclusive finance enables the financial system to give better play to the function of price discovery,promote the accurate delivery of scarce financial resources to the rural market with unlimited potential,and correct the failure of the allocation of existing financial resources.Second,expanding the scale of farmers’ financing,increasing farmers’ financing channels,and improving farmers’ entrepreneurial choices and income are important ways to realize the integration of small farmers into the big market,promote the transformation of farmers from small producers to rational economic people,and realize common prosperity.At this stage,the incidence of farmers’ entrepreneurship in China is low,mainly small-scale survival entrepreneurship.There are few entrepreneurial farmers registered in the industrial and commercial department,and farmers’ entrepreneurship is concentrated in wholesale,retail,catering and other low value-added industries.Entrepreneurial farmers’information literacy and financial literacy are not high,and the application proportion of Internet and digital financial tools is low.Farmers’ entrepreneurship has serious financing constraints,which is intuitively manifested in narrow financing channels and weak financing ability.Farmers have self-exclusion from formal financial institutions such as banks.Financing channels based on relatives,friends and private financial institutions have become the primary source of their loans.The low financing ability has become the main reason to limit farmers’ entrepreneurial choice and reduce farmers’ entrepreneurial performance.Under the background of Rural Revitalization Strategy,farmers’entrepreneurship urgently needs to improve quality and efficiency.Third,as a rational economic man,farmers’ entrepreneurial decision-making is based on the comparison of entrepreneurial expected income and opportunity cost,that is,the critical point of entrepreneurial behavior choice should meet that the net entrepreneurial income is just equal to the professional income when they are employed.The expected income of farmers’ entrepreneurship is affected by farmers’entrepreneurial environment and entrepreneurial ability.Digital inclusive finance works with the internal and external environment and conditions of farmers’ entrepreneurship to help farmers break through the constraints of entrepreneurial resources and improve the expected income of entrepreneurship.The development of digital inclusive finance can promote the high-quality development of China’s economy by stimulating the vitality of domestic demand and improving the business environment of enterprises.In recent years,the digital economy driven by digital finance has developed vigorously,which has promoted the more rational allocation of social resources,the continuous optimization of rural industrial structure and the rising level of technological innovation,effectively promoted the economic development of remote areas such as rural areas and realized "curve overtaking".This paper holds that the rapid development of digital inclusive finance brings economic growth effect,technological innovation effect,equal opportunity effect and cost reduction effect,which can effectively improve the external environment of farmers’entrepreneurship.The development of digital inclusive finance also promotes the improvement of farmers’ entrepreneurial ability through human capital effect,information transmission effect,resource acquisition effect and social network effect.Fourth,the empirical results point out that the development of digital inclusive finance can effectively promote farmers’ entrepreneurial choice and improve farmers’entrepreneurial performance.However,the impact of digital inclusive finance on farmers’entrepreneurship is heterogeneous based on region,entrepreneurship type and farmers’ own quality.The impact on farmers’ entrepreneurship in the east,middle and west regions decrease in turn;the impact on the entrepreneurship of agricultural part-time farmers is greater than that of non-agricultural professional farmers;the impact on survival entrepreneurship is greater than opportunity entrepreneurship;the impact on farmers’entrepreneurship with different health status and wealth level is also heterogeneous.The"long tail effect" of digital inclusive finance on farmers’ entrepreneurship is not tenable.It shows that although digital inclusive finance aims to improve the financial availability of vulnerable groups and promote vulnerable groups to enjoy low-cost financial services equally,the positive impact on farmers’ entrepreneurship can be brought into play only when it breaks through certain resources and threshold constraints.The central and western regions and rural vulnerable groups urgently need to improve the entrepreneurial environment,enhance their entrepreneurial ability,and make effective use of the"entrepreneurial dividend" brought by the development of digital inclusive finance.Fifth,high financing ability helps farmers improve entrepreneurial choices and entrepreneurial performance by identifying entrepreneurial opportunities,integrating entrepreneurial resources,promoting R&D innovation and reducing entrepreneurial risks.In the initial stage of farmers’ entrepreneurship,informal loans from relatives and friends.neighbors and private financial institutions have become the main source of funds for their entrepreneurial choices.However,due to the limitation of financing scale and financing cost,the impact of informal financing on Farmers’ entrepreneurial profits is not significant.and the impact of financing fron formal channels such as banks on Farmers’entrepreneurial profits is significantly positive.It shows that when farmers’entrepreneurship is on track,the support of funds from relatives,friends and private financial institutions to farmers’ entrepreneurship is limited,while formal channel financing has a significant impact on Farmers’ expansion of business scale and improvement of entrepreneurial performance due to low cost and large capital scale.Sixth,the development of digital inclusive finance has significantly improved the financing ability of farmers,especially the financing ability of farmers through formal channels.Financing ability has a significant intermediary effect in the impact of digital inclusive finance on Farmers’ entrepreneurial choice and entrepreneurial profit.The intermediary effect of informal channels accounts for more than that of informal channels.Therefore,the development of digital inclusive finance should tend to provide a better financing environment for farmers’ entrepreneurship,reduce financing constraints,improve farmers’ financing ability through formal channels,and then improve farmers’ enthusiasm and sustainability of entrepreneurship.The innovation of this paper is mainly reflected in the investigation of the development of digital inclusive finance,financing ability and farmers’ entrepreneurship,the innovation of the research paradigm of farmers’ entrepreneurship,and the further enrichment and improvement of digital inclusive finance theory,financing priority theory and farmers’ entrepreneurship theory.Specifically,it mainly includes the following three aspects:Firstly,in terms of theoretical research,following the logic of "digital inclusive finance development-farmers’ financing ability-farmers’ entrepreneurial choice" and"digital inclusive finance development-farmers’ financing ability-farmers’entrepreneurial performance",the paper creatively embeds the financing ability into the research on the impact of digital inclusive finance development on farmers’entrepreneurship,breaking through the previous "digital inclusive finance-farmers’entrepreneurship".The limitations of bivariate research such as "financing ability-farmers’entrepreneurship".This paper not only analyzes the impact mechanism of the external financial environment on farmers’ entrepreneurship,but also analyzes the impact mechanism of their own financing ability on farmers’ entrepreneurship.On this basis,considering the correlation between the three,it provides a marginal contribution for a better understanding of the influencing factors of farmers’ entrepreneurship,and enriches the theory of farmers’ innovation,entrepreneurship and financing behavior to a certain extent.Secondly,few studies systematically analyze the specific mechanism of digital inclusive finance to improve farmers’ financing ability.Firstly,from the perspective of farmers’ access to financial services,this paper demonstrates the impact of digital inclusive finance on farmers’ formal channel financing ability:firstly,analyze the role of digital inclusive finance in reducing transaction costs and improving supply efficiency of financial institutions from the supply side;secondly,analyze the role of digital inclusive finance in popularizing financial knowledge,sharing financial information and stimulating farmers’potential demand for non-basic financial services from the demand side;finally,from the perspective of supply and demand balance,this paper demonstrates the role of digital inclusive finance in improving farmers’ financing ability through formal channels.On this basis,the paper analyzes the impact of digital inclusive finance on farmers’ informal channel financing ability from the perspective of social network effect.Finally,in terms of empirical evidence,previous studies have mostly carried out micro data investigation for a certain region,and the applicability of the conclusion is questionable.This paper integrates the digital inclusive finance index at the macro level,the data of China Household Tracking Survey(CFPS)and China Household Finance Survey(CHFS)at the micro level,and empirically tests the impact of the development of digital inclusive finance and financing capacity on farmers’ entrepreneurship,especially the heterogeneous impact on farmers’ entrepreneurship in different regions and types.The research results of this paper are more reliable.In terms of research methods,this paper combines panel probit model,panel logit model,instrumental variable model,LPM model and rare event bias estimation to study the entrepreneurial effect of digital inclusive finance.When studying the transmission effect of "digital inclusive finance-financing abilityfarmers’ entrepreneurship",the intermediary effect model and Sobel and Bootstrap test are applied.Existing studies usually only consider one or two research methods when dealing with similar problems.The paper tries to combine these methods as much as possible to enhance the reliability of empirical research.