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

Jun Luo and Jiang Zhu

Finance Research Letters, 2025, vol. 73, issue C

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.

Keywords: Entrepreneurship; Credit cards; Financial literacy; Risk attitude (search for similar items in EconPapers)
JEL-codes: D13 G10 G20 M13 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:73:y:2025:i:c:s154461232401701x

DOI: 10.1016/j.frl.2024.106672

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