Using a survey dataset of Chinese rural households, we find that access to external finance is positively associated … informal finance, especially financing from friends and family, is positively associated with sales growth of microenterprises … with employees, but not of self-employed. We do not find any significant relationship between the use of formal finance and …

Abstract: Using a survey dataset of Chinese rural households, we find that access to external finance is positively … associated with the decision to become entrepreneur, the initial investment for microenterprises and the use of external finance …. Also, we find that the use of informal finance is positively associated with sales growth of microenterprises with …