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Credit card usage and its effects on financial literacy as a channel for entrepreneurship

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  • Luo, Jun
  • Zhu, Jiang

Abstract

Promoting entrepreneurship can ease the employment pressure of a country or region, especially during the COVID-19 pandemic. Using the China Household Finance Survey (CHFS) data, we found credit card use significantly increased the probability of household entrepreneurship. Subsequently, the results of the mechanism analysis show the impact is produced by increasing financial literacy accumulation and optimizing risk attitudes. Furthermore, we find using credit cards positively impacts employers’ entrepreneurship and opportunity entrepreneurship but reduces the probability of family members’ self-employed entrepreneurship and necessary entrepreneurship.

Suggested Citation

  • Luo, Jun & Zhu, Jiang, 2025. "Credit card usage and its effects on financial literacy as a channel for entrepreneurship," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s154461232401701x
    DOI: 10.1016/j.frl.2024.106672
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    More about this item

    Keywords

    Entrepreneurship; Credit cards; Financial literacy; Risk attitude;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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