Abstract

The capability of individuals to manage their finances is essential to the outcomes of their entrepreneurial activities. Using panel data from the China Household Finance Survey (C.H.F.S.) in 2013, 2015 and 2017, this article examines how financial capability affects entrepreneurial performance in rural China. The results demonstrate that financial capability is positively correlated with the scale, profitability and sustainability of entrepreneurship, which is robust in consideration of endogeneity. The effects of financial capability are heterogeneous for different entrepreneurs. Furthermore, technology, labour and land act as the mediating variables through which financial capability improves entrepreneurial performance. Therefore, to facilitate entrepreneurial success, it is important to provide entrepreneurs with financial education. Meanwhile, improvements to the financial environment should also be considered. Additionally, financial institutions should combine financial services with factors, such as technology, land and labour, to improve entrepreneurial performance.

Details

Title
Can financial capability improve entrepreneurial performance? Evidence from rural China
Author
Hong, Yi 1 ; Xue Meng 2 ; Linghu, Yuting 2 ; Zhang, Ziyu 2 

 College of Business Administration, Guizhou University of Finance and Economics, Guizhou, Guiyang, China 
 College of Big Data Application and Economics, Guizhou University of Finance and Economics, Guizhou, Guiyang, China 
Pages
1631-1650
Publication year
2023
Publication date
Dec 2023
Publisher
Taylor & Francis Ltd.
ISSN
1331677X
e-ISSN
18489664
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2922706507
Copyright
© 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This work is licensed under the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.