How returning home for entrepreneurship affects rural common prosperity

This article attempts to construct a logical framework for the impact of returning home for entrepreneurship on rural common prosperity based on the institutional analysis framework driven by the market, government, and society. Using institutional theory as the theoretical foundation, the framework starts from the three main entities of financial credit in the market system, government support in the government system, and social network in the social system. Empirical research is conducted using the China Family Panel Studies (CFPS) and district panel data from 2014 to 2022. The research results found that returning home for entrepreneurship has a significant promoting effect on rural common prosperity, and there is heterogeneity at multiple levels; From the perspective of the mechanism of action, returning home for entrepreneurship mainly affects rural common prosperity through market system financial credit, government system government support, and social network of social system; Further expand the analysis findings, there is a significant "Matthew effect" in rural areas with different levels of common prosperity when returning home for entrepreneurship, and the driving force is stronger in areas with high levels of rural common prosperity. • Returning home for entrepreneurship has a significant promoting effect on rural common prosperity and there is heterogeneity at multiple levels. • Returning home for entrepreneurship mainly affects rural common prosperity through market system financial credit, government system government support and social network of social system • There is a significant "Matthew effect" in rural areas with different levels of common prosperity when returning home for entrepreneurship and the driving force is stronger in areas with high levels of rural common prosperity.