Financial Literacy, Formal Credit Availability and Family Farm Entrepreneurial Performance: Take Fujian Province as an Example

Based on the data of 408 family farm surveys in Fujian Province, this research combs domestic and foreign research literature, based on the theory of information asymmetry and credit rationing theory, uses multiple linear regression, causal step method and hierarchical regression analysis to clarify financial literacy for family farms. The following conclusions are drawn: (1) in financial literacy, the two dimensions of financial knowledge and financial ability can effectively promote the improvement of family farms’ entrepreneurial performance; (2) a higher level of financial knowledge and financial ability helps family farms obtain formal credit resources; (3) family farms with higher formal credit availability can often create higher performance; (4) family farm entrepreneurs with higher prior knowledge can more efficiently convert formal credit funds into entrepreneurship performance of family farms; (5) in the influence of control variables on the entrepreneurial performance of family farms, age, education level, number of years of work, years of establishment of family farms, and scale of family farm operations all have a significant impact on the entrepreneurial performance of family farms. Combining the above conclusions, this paper proposes targeted ways to improve financial literacy and the availability of formal credit from three perspectives: government agencies, financial institutions, and family farms themselves. With a view to alleviating the financing dilemma caused by the demand-based credit rationing of family farms and promoting the improvement of their entrepreneurial performance.