The Impact Of Banking Structure On Entrepreneurial Behavior

This article mainly discusses the impact of the banking structure on entrepreneurial behavior.Because the explained variable “entrepreneurship” is a binary variable,the Probit model is used for empirical analysis.The empirical results show that there is a significant positive relationship between the market share of local small banks and the entrepreneurial activities in the region.Specifically,if the proportion of local small banks in which the family is located rises by one standard deviation,the probability of family entrepreneurship increases significantly by 1.51 percentage points.The article further validates the mechanism of local small banks to promote entrepreneurial behavior,and finds that the impact of local small banks on entrepreneurship is more significant in households with higher financial constraints,so local small banks can promote family's Entrepreneurial behavior by easing financial constraints.In order to eliminate other external factors which affect the empirical results,this paper adopts measures such as changing empirical methods?replacing control variables and replacing databases to perform robustness analysis.Through further empirical discussion,it is found that comparing with city commercial banks,rising market share of rural financial institutions is more conducive to the creation of entrepreneurial behavior.This article also analyzes the heterogeneous impact of the banking industry structure on household entrepreneurship in different regions,finds that the development of local small banks has a greater positive impact on household entrepreneurship in urban areas and households in the central region.In addition,by defining different types of entrepreneurship,it is concluded that the impact of the banking structure on self-employed entrepreneurship and opportunistic entrepreneurship is more significant.This article not only reveals the internal mechanism of the banking structure's influence on entrepreneurial behavior,but also enriches the existing literature on the factors affecting entrepreneurial behavior.at the same time,it provides some empirical support for the formulation of entrepreneurial policies in China.