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Understanding the Relationship between Financial Literacy and Chinese Rural Households’ Entrepreneurship from the Perspective of Credit Constraints and Risk Preference

Silin Liu, Jia He, Dingde Xu · 2023 · International Journal of Environmental Research and Public Health

Summary. Financial literacy significantly promotes entrepreneurship among Chinese rural households by reducing credit constraints, though risk preference weakens this effect. The study finds that only 11.2% of rural households start businesses, and that improving farmers' financial literacy—currently low at 11.2%—can help them overcome traditional credit barriers and pursue entrepreneurial ventures. Risk-averse farmers show weaker entrepreneurial responses to improved financial literacy.

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Liu, S., He, J., & Xu, D.. (2023). Understanding the Relationship between Financial Literacy and Chinese Rural Households’ Entrepreneurship from the Perspective of Credit Constraints and Risk Preference. International Journal of Environmental Research and Public Health. https://doi.org/10.3390/ijerph20064981

Details

DOI
10.3390/ijerph20064981
Countries
China
Regions
Asia
Categories
entrepreneurship, funding
Added
2026-04-28