Housing Values Promote Household Entrepreneurship–Mediation of household financial vulnerability and household financing capacity

Based on data of the Chinese Household Tracking Survey 2016-2020, this paper analyzes how housing value affects entrepreneurship. The results show that (1) rising housing value both stimulates household entrepreneurial decisions and enhances household entrepreneurial performance. (2) Mechanism tests imply that rising housing value alleviates household financial vulnerability and enhances household financing capacity. (3) It is further found that the positive effects of housing value are more pronounced in the eastern region and among those who own home titles. This paper deepens the understanding of housing value in entrepreneurial activities and sheds light on encouraging household entrepreneurship through optimizing housing policies.