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Social networks, financial knowledge, and urban–rural family entrepreneurship

Author

Listed:
  • Jia, Xiaofei
  • Zhang, Naiqian
  • Tong, Tong
  • Li, Yongna
  • Han, Ruixue

Abstract

Improving residents’ social network environments and enhancing financial literacy are critical for fostering an active household entrepreneurship environment. Using data from the 2011–2019 China Household Finance Survey collected by the China Household Finance Survey Center, this study investigates the impact of social networks on household entrepreneurship among urban and rural residents and examines the mediating role of financial literacy using a mediation effect model. Findings indicate that social networks encourage household entrepreneurial activities and boosts household entrepreneurship by enhancing residents’ financial literacy, with a more significant impact on rural residents than on urban ones.

Suggested Citation

  • Jia, Xiaofei & Zhang, Naiqian & Tong, Tong & Li, Yongna & Han, Ruixue, 2025. "Social networks, financial knowledge, and urban–rural family entrepreneurship," Finance Research Letters, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002934
    DOI: 10.1016/j.frl.2025.107029
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    More about this item

    Keywords

    Social networks; Household entrepreneurship; Financial literacy; Urban–rural differences;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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