How Does Digital Finance Affect Entrepreneurial Performance? Evidence from Chinese Enterprises
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Abstract
This article aimed to study (1) how digital finance serves as a catalyst for new ventures and small and micro-enterprises to identify entrepreneurial opportunities and how it alleviates financing constraints, providing solutions to overcome challenges related to the accessibility and affordability of finance for these businesses; (2) the impact of digital finance on improving entrepreneurial performance; and (3) the bridging role of identifying entrepreneurial opportunities and easing financing constraints through digital finance between digital finance and entrepreneurial success and how they mediate this relationship. The sample consisted of 1,197 entities. They were selected by conducting a questionnaire survey. The instrument for collecting data was the questionnaire survey. Data analysis was conducted using descriptive statistics and structural equation modeling for a thorough empirical analysis. The research results were found as follows: Digital finance acts as a positive force in identifying entrepreneurial opportunities and reducing financing constraints, which, in turn, favorably affects entrepreneurial performance. The identification of entrepreneurial opportunities and the easing of financing constraints not only bridge the gap between digital finance and entrepreneurial success but also mediate this relationship, emphasizing their pivotal roles. This article contributes to both academic and practical fields by deeply examining how digital finance can impact the process of identifying entrepreneurial opportunities and managing financing constraints, thereby enriching our understanding of how these aspects are interconnected with the overall performance of entrepreneurs. Through this study, we gain insights into the potential of digital finance in reshaping the entrepreneurship landscape, offering a roadmap for future research and policy development aimed at fostering an environment conducive to entrepreneurial growth and innovation.
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