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To tackle the growing menace of environmental degradation, the idea of green entrepreneurship has gained popularity, which is the process of creating new goods and technologies to solve environmental problems. Like traditional entrepreneurs, green entrepreneurs also need financial backing from financial institutions. However, no empirical evidence was found regarding the relationship between formal credit and green entrepreneurship. This analysis is an effort to plug this vacuum into the literature by analyzing the impact of formal credit on green entrepreneurship in high, middle, and low-income economies from 2011 to 2021. The study has employed various econometric techniques such as fixed-effects, random-effects, 2SLS, and GMM. The results show that formal credit substantially develops green entrepreneurship in high, middle, low-income, and full samples. Besides formal credit, GDP, environmental pressure, trade openness, technological development, and human capital are crucial in green entrepreneurship development in all samples. Policymakers may collaborate with financial institutions to create and provide specialized financial products and services catering to green entrepreneurs. [ABSTRACT FROM AUTHOR]

Microcredit has been found to be a critical instrument in improving the livelihood of poor people who have no financial access from other formal financial institutions. This study examined the impact of formal microcredit on income of borrowers in the rural areas of Sidama Region, Ethiopia. Data was collected from 456 sampled rural households consisting of 200 borrowers and 256 non-borrowers. This study applied propensity score matching (PSM) model to analyze the impact of microcredit on income of the borrowers. The result of this analysis indicates that microcredit had a positive and significant impact on the income of the borrowers. The sensitivity analysis result showed that the impact result estimated by this study is insensitive to unobserved selection bias and it is a true impact of formal microcredit. Therefore, microfinance institutions, other governmental, and nongovernmental organizations working in credit provision should expand access to credit to rural households in poverty reduction strategies. [ABSTRACT FROM AUTHOR]

Limited access to credit can cause financial vulnerability for a household and economic loss for a country. Previous studies have shown that only small portions of the population in developing countries had access to formal credit, and few of them focused on Chinese populations. Using data from 2011 China Household Financial Studies, this study explores Chinese households' credit use. We found that over half of the sample (53.21%) used credit, and only 19.77% used formal credit. Use of formal credit was associated with socioeconomic characteristics of household heads (e.g., employment, education) and households (e.g., income, net worth). The findings suggest that promoting financial inclusion in China involves expanding access to formal credit among the socially and economically disadvantaged households. [ABSTRACT FROM AUTHOR]