The entrepreneurial ecosystem of inclusive finance and entrepreneurship: A theoretical and empirical test in China

Abstract

From a regional entrepreneurial ecosystem perspective, we theoretically interpret and empirically testify the mutual promotions between inclusive finance, entrepreneurship, and development. To do so, a two-period overlapping generation model is introduced to interpret the mechanism, and then a panel vector auto-regression model based on 31 provinces (and municipalities) in China from 2005 to 2016 is constructed. We find that: (a) Due to the development-promoting ability, self-reinforcing ability and multiplying effect, it is possible and worthy to construct a sustainable developing system. (b) However, an insufficient human capital endowment might be a critical obstacle, which is revealed as a precondition of this sustainable system. (c) Moreover, it is necessary to promote sustainable development of financial inclusion and entrepreneurship, due to the lack of directly promoting effect from economic development. (d) Thus, governmental complement is indispensable because of polarization led by the endowed wealth gap, and continuous promotion is appealed due to the transforming lag of mutual promoting feedback.

How does financial development environment affect regional innovation capabilities? New perspectives from digital finance and institutional quality

“…In recent years, with the development of big data, blockchain, artificial intelligence and other technologies, whether the development of digital finance can improve the enterprise financing environment and promote technological innovation has become a new research topic (Hao et al, 2023;Wu et al, 2021a;Ren et al, 2022a). Inclusive finance provides financial services at affordable prices and helps to alleviate the conflict between supply and demand of finance (Cao and Zhang, 2022;Sarma and Pais, 2011;Turvey and Xiong, 2017). Digital inclusive finance further reduces operational costs, assessment difficulties, operating prices, and marketing costs (Du et al, 2022).…”

Access to finance and rural youth entrepreneurship in Benin: Is there a gender gap?

“…The issue of rural youth entrepreneurship is particularly sensitive in developing countries because it represents a potential instrument for solving the labour market imperfection, alleviating poverty as well as ensuring food security due to the vital role agriculture plays in rural areas (Ataeia et al, 2020;Trivelli and Morel, 2020;Cao and Zhang, 2020;Metelerkamp et al, 2019). Development agencies view rural entrepreneurship including agribusiness as an important employment generation intervention for the fast-growing young labour force in the years ahead (Alemu and Adesina, 2017;Anyanwu, 2013).…”