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

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.