Financial Inclusion under Internet Plus and Household Entrepreneurial Decisions

Abstract

By using the data of China Family Panel Studies 2014, this paper investigates the effect of financial inclusion under Internet Plus on household entrepreneurial decisions from two perspectives of width and depth based on discrete variables selection model and two-stage least-squares estimation method. It arrives at the following conclusions:through the fusion of the information flow and the financing flow, the fusion of Internet Plus and financial inclusion reduces the risks in household business financing and increases its participation in formal financial market, thereby promoting ordinary household entrepreneurial probability; especially in urban families, high income families and families at higher education level, it plays a significantly promotion role in their entrepreneurial decisions; besides, the fusion of Internet Plus and financial inclusion also makes families be more active in opportunity-based entrepreneurial activities. This paper validates the availability of the effects of financial inclusion under Internet Plus on formal financial financing preference and risk preference channels in household entrepreneurial decisions, which is of great significance to the improvement of financial supportive environment in present work of popular entrepreneurship and innovation.