Influence of Digital Finance on Efficacy of Entrepreneurship by Returning Migrant Workers

Abstract

Digital finance provides an ideal entrepreneurial environment for returning migrant workers (RMWs). From the perspective of entrepreneurs, many scholars have quantified the factors affecting entrepreneurship, as well as the entrepreneurial environment, theorized the importance, motives, and internal/external impactors of RMW entrepreneurship, and put forward quite a lot of countermeasures. This paper innovatively evaluates how digital finance influences the efficacy of RMW entrepreneurship. Firstly, the authors established an influencing factor analysis model and an RMW entrepreneurship model and explained principles for the structural equation modeling of the influence of digital finance on RMW entrepreneurship efficacy. Next, the traditional partial least squares (PLS) regression was optimized, the optimal initial iteration values (IIVs) were obtained, and the algorithm convergence was achieved. Finally, a multilayer structural equation model (SEM) was constructed to evaluate the influence of digital finance on RMW entrepreneurship efficacy. The proposed algorithm and model were proved valid and feasible through experiments.