Empirical Analysis of Internet Finance’s Promotion of Innovation and Entrepreneurship Development: Mediating Effect Based on Innovation and Entrepreneurship Willingness

In the context of rapid digital transformation and economic growth, internet finance has emerged as a significant supporter of innovation and entrepreneurship. This research examines the impact of internet finance on the development of these areas and investigates the mediating role of individuals’ willingness to innovate and engage in entrepreneurial activities. Using a quantitative approach, the study analyzes data from 41 cities in China’s Yangtze River Delta from 2014 to 2021, applying fixed effect and mediating effect models to assess the influence from various perspectives. Findings indicate that internet finance substantially boosts innovation and entrepreneurship, with a notably stronger effect in small and medium-sized cities. The willingness to innovate and pursue entrepreneurship significantly mediates this relationship, highlighting a significant moderating role. Consequently, internet finance indirectly stimulates innovation and entrepreneurship by enhancing individuals’ willingness to innovate. This study underscores the need for governments and businesses to focus on the development of internet finance and actively promote a culture of innovation and entrepreneurship to support socio-economic progress. It offers fresh insights for policymaking in the realm of internet finance, revealing its distinct roles in fostering regional economic innovation.