Does digital finance promote entrepreneurship? Evidence from city-level and household-level data in China

Ke Zhang and Jing Pang

Applied Economics Letters, 2025, vol. 32, issue 5, 637-643

Abstract: We investigate the impact of digital finance on entrepreneurship from both urban and household perspectives. Utilizing entrepreneurship data from 251 prefecture-level cities in mainland China, as well as household entrepreneurship data from CFPS, we find that digital finance plays a significant role in promoting both urban and household entrepreneurship. In addition, the effect of digital finance on urban and household entrepreneurship shows heterogeneity among different types of entrepreneurship and urban-rural household. Self-employment entrepreneurship and entrepreneurial activities of rural households receive greater support from the development of digital finance.

Date: 2025
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DOI: 10.1080/13504851.2023.2278596

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