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What affects rural households’ entrepreneurial performance: Formal or informal finance availability?

Author

Listed:
  • Zhilue Xiang
  • Qiaoyue Yin
  • Xizhi Xue
  • Wanting Zhang
  • Xia Wang

Abstract

This study explores the role of financial availability in the growth and development of rural household entrepreneurship, particularly beyond the start-up phase. Focusing on entrepreneurial rural households, the study uses CFPS data to determine how financial availability influences their performance. Results reveal that formal finance significantly contributes to the growth of entrepreneurial performance, whereas informal finance does not. Further, the positive impact of formal finance exhibits notable regional heterogeneity. These findings suggest policies should strengthen formal finance, adopt regionally differentiated support strategies, and guide the complementary development of informal finance to foster sustainable rural entrepreneurship growth.

Suggested Citation

  • Zhilue Xiang & Qiaoyue Yin & Xizhi Xue & Wanting Zhang & Xia Wang, 2026. "What affects rural households’ entrepreneurial performance: Formal or informal finance availability?," PLOS ONE, Public Library of Science, vol. 21(2), pages 1-20, February.
    • Handle: RePEc:plo:pone00:0343040
    DOI: 10.1371/journal.pone.0343040
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    References listed on IDEAS

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    1. Hong Yi & Xue Meng & Yuting Linghu & Ziyu Zhang, 2023. "Can financial capability improve entrepreneurial performance? Evidence from rural China," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 36(1), pages 1631-1650, March.
    2. Xiaojun Wu & Huijia Chang, 2023. "Impact of digital inclusive finance on household tourism consumption: evidence from China," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 27(6), pages 2101-2121, February.
    3. Wu, Jinshun & Wu, Luyao, 2023. "Impacts of digital inclusive finance on household entrepreneurship," Finance Research Letters, Elsevier, vol. 56(C).
    4. Qi Wu & Jiaqi Feng & Shouheng Sun, 2023. "Research on the Impact of Digital Inclusive Finance on People’s Well-Being," Lecture Notes in Operations Research, in: Xiaopu Shang & Xiaowen Fu & Yixuan Ma & Daqing Gong & Juliang Zhang (ed.), Liss 2022, pages 211-226, Springer.
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