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Can digital financial inclusion promote female entrepreneurship? Evidence and mechanisms

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  • Yang, Xiaolan
  • Huang, Yidong
  • Gao, Mei

Abstract

Female entrepreneurship is important for business and economic development. However, women face greater obstacles than men in accessing financing and information, making it more difficult for them to engage in entrepreneurship. This paper examines the impact of digital financial inclusion on female entrepreneurship by using a national sample consisting of matched data from a digital financial inclusion index and a nationally representative survey. The results show that digital financial inclusion significantly promotes women’s entrepreneurial behavior. We find that digital financial inclusion can ease women’s financing constraints and provide business information to alleviate their information constraints. Furthermore, the development of digital financial inclusion improves women’s work flexibility, inspiring them to engage in entrepreneurship. In addition, digital financial inclusion has a greater effect on entrepreneurship among vulnerable women, such as those with less education or a lack of financial autonomy and those living in areas with high gender inequality, which supports the idea that digital financial inclusion can empower women.

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  • Yang, Xiaolan & Huang, Yidong & Gao, Mei, 2022. "Can digital financial inclusion promote female entrepreneurship? Evidence and mechanisms," The North American Journal of Economics and Finance, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:ecofin:v:63:y:2022:i:c:s106294082200136x
    DOI: 10.1016/j.najef.2022.101800
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    2. Mao, Fengfu & Wang, Yuanfan & Zhu, Mengsi, 2023. "Digital financial inclusion, traditional finance system and household entrepreneurship," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    3. Shao, KaiChao & Ma, Ruixue & Kamber, Joseph, 2023. "An in-depth analysis of the entrepreneurship of rural Chinese mothers and the digital inclusive finance," Telecommunications Policy, Elsevier, vol. 47(7).
    4. Haibo Lei & Qin Su, 2023. "Does the Use of Digital Finance Affect Household Farmland Transfer-Out?," Sustainability, MDPI, vol. 15(16), pages 1-18, August.
    5. Weiwei Zhan & Hao Jing, 2022. "Does Fintech Development Reduce Corporate Earnings Management? Evidence from China," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    6. Wu, Jinshun & Wu, Luyao, 2023. "Impacts of digital inclusive finance on household entrepreneurship," Finance Research Letters, Elsevier, vol. 56(C).
    7. Sun, Yanan & You, Xiaotong, 2023. "Do digital inclusive finance, innovation, and entrepreneurship activities stimulate vitality of the urban economy? Empirical evidence from the Yangtze River Delta, China," Technology in Society, Elsevier, vol. 72(C).
    8. Dyah Titis Kusuma Wardani & Navi'ah Khusniati & Susilo Nur Aji Cokro Darsono, 2023. "Sociodemographic Effects on Financial Inclusion: Implications from Online Transaction in Developing-8 Countriesfrom Online Transaction in Developing-8 Countries Abstract: The world has reached the ind," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 69, pages 67-86, Juni.

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    More about this item

    Keywords

    Digital financial inclusion; Female entrepreneurship; CFPS;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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