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Effect of Human Capital and Policy Acquisition Perception on Chinese Farmers’ Entrepreneurial Performance

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Employment generation and economic growth have remained paramount on the policy agenda of the Chinese government. The "Double Mass" policy exemplifies governmental efforts to address employment creation. A comprehensive understanding of human capital can contribute to the development of more effective support policies for entrepreneurial activities, thereby promoting their growth and expansion in rural areas to mitigate rural poverty. Within this context, this study seeks to analyze the human capital of farmers and the factors influencing their participation in training programs aimed at enhancing entrepreneurial performance, while also considering the impact of their perceptions of entrepreneurial policies. This research employs a linear regression model to critically analyse and verify the influence of human capital, education, and training on entrepreneurial performance. A mediation test is conducted to verify the intermediary role of farmers' perception of policy acquisition. Drawing on data from 889 questionnaires collected in Shaanxi Province, the research analyzes both the magnitude and the pathways through which human capital and policy acquisition perception impact farmers' entrepreneurial performance. The findings indicate that human capital, as measured by educational level and participation in training (WPT), exerts a significant positive influence on farmers' entrepreneurial performance. Interestingly, WPT exerted a more pronounced effect on farmers entrepreneurship performance (FEP) than formal educational attainment. The second key finding is that the intermediary effect between educational level and FEP is not statistically significant. This suggests that policy acquisition perception (PAP) does not serve as an explanatory mechanism for the relationship between educational level and FEP. Finally, the analysis reveals that PAP plays an intermediary role between WPT and FEP, accounting for 17.7% of the total effect. Existing research on the relationship between Policy Awareness Perception (PAP) and farmers' entrepreneurial performance remains limited (Dai & Si, 2018). This research will partially address this gap in knowledge by conducting an empirical analysis of farmers' human capital, identifying the factors that influence their decisions to engage in training programs aimed at enhancing entrepreneurial performance, and examining their perceptions of acquiring entrepreneurial policies.
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