The formation and widening of the income gap between Jiangsu and Zhejiang are not only related to the differences in the traditional behaviors of farmers in the two provinces, but also to the fact that the development environment of individual and private enterprises is not as relaxed as in Zhejiang.

(1) The rural individual economy in Jiangsu is weaker than that in Zhejiang. In 2007, the proportion of household operating income in Zhejiang was larger than that in Jiangsu, which shows that farmers in Zhejiang are better at private operations and that the development environment for individual private businesses in Zhejiang is more relaxed. The development status of individual industrial and commercial households in rural areas of the two provinces confirms this.

1. The proportion of self-employed people is lower than that in Zhejiang. Sample survey data show that in 2007, the proportions of individual industrial and commercial households in rural households in Jiangsu and Zhejiang were 9.3 and 13.4 respectively, and Jiangsu was 4.1 percentage points lower than Zhejiang.

2. The income of self-employed people is lower than that in Zhejiang. In 2007, the average income of individual industrial and commercial households in rural areas of Jiangsu and Zhejiang was 31,041 yuan and 38,176 yuan respectively. The average household income in Jiangsu was 7,135 yuan less than that in Zhejiang, which was 81.3 yuan lower than that in Zhejiang.

3. Self-employed individuals invest less than Zhejiang. In 2007, for rural individual industrial and commercial households with operational investment of more than 5,000 yuan in the secondary and tertiary industries, the average investment per household in Jiangsu and Zhejiang was 20,553 yuan and 35,610 yuan respectively, which was 1.7 times that of Jiangsu; the average original value of productive fixed assets per household was 41,424 yuan and 64,220 yuan respectively. Yuan, Zhejiang is 1.6 times that of Jiangsu. This shows that rural self-employed businesses in Jiangsu have difficulty financing and their competitiveness is weak.

4. The tax burden on self-employed individuals is much heavier than that in Zhejiang. The income level of individual industrial and commercial households in rural Jiangsu is lower than that of Zhejiang, but the taxes they bear are much higher than that of Zhejiang. In 2007, rural self-employed households in Jiangsu who invested more than 5,000 yuan in production and operation paid an average of 1,438 yuan in various taxes and fees, while Zhejiang only paid 650 yuan for the same amount.

5. Credit for self-employed people is far less than that in Zhejiang. In 2007, the average loan obtained by individual industrial and commercial households in Jiangsu's rural areas from banks and credit cooperatives was only 69 yuan, accounting for 5% of their externally raised funds; the average loan obtained by each household in Zhejiang was 552 yuan, accounting for 21.7% of their externally raised funds. The scale and proportion of loans obtained in Jiangsu are much lower than those in Zhejiang.

(2) The tax incentives for individuals and private businesses are not as good as those in Zhejiang. In 1997, the Zhejiang Provincial Party Committee and the Provincial Government issued the "Notice on Vigorously Developing the Individual Private and Other Non-Public Economy", which stipulated in detail the conditions for income tax reduction and exemption for non-public enterprises. For example, newly established non-public enterprises engaged in consulting, information, and technical service industries, with the approval of the competent tax authorities, can be exempted from corporate income tax for two years from the date of opening; newly established non-public enterprises engaged in transportation, subject to the approval of the competent tax authorities With the approval of the tax authorities, from the date of business opening, corporate income tax will be exempted in the first year and corporate income tax will be halved in the second year; newly established non-public enterprises engaged in other tertiary industries other than the above shall be approved by the competent tax authorities at or above the county level. With approval, corporate income tax can be reduced or exempted for one year from the date of business opening. In the "Opinions on Accelerating the Development of the Private Individual Economy" issued by the Jiangsu Provincial Party Committee and the Provincial Government in 2000, it stipulates that newly established private limited liability companies engaged in the consulting industry, information industry, and technical service industry with independent accounting shall be in charge of taxation. With the approval of the authorities, the company can be exempted from corporate income tax for two years from the date of business opening. The reduction and exemption policies for newly established transportation and tertiary industry non-public enterprises stipulated by Zhejiang have not been touched. As a result, the burden on Jiangsu's private economy is significantly heavier than that of Zhejiang. Information provided by the Provincial Township Enterprise Bureau shows that in 2006, the average tax paid by private enterprise households in Jiangsu's rural areas was 213,000 yuan, which was 103,000 yuan more than the average household in Zhejiang.

(3) There are fewer “green channels” for the transportation of fresh agricultural products in Jiangsu than in Zhejiang. As early as 2005, Zhejiang Province stipulated: "Freight vehicles (including cold chain and hidden vehicles) with provincial licenses for transporting fresh agricultural products must present animal and plant quarantine certificates or fresh agricultural products ( Refers to the certificate of origin of fresh eggs, milk, fresh aquatic products, fresh bamboo shoots, fresh chestnuts, etc. that are not subject to quarantine, and free access to toll roads (including bridges and tunnels) in the province, including expressways." ("Zhejiang Province Fresh Products") Article 3 of the Interim Measures for the Administration of "Green Channels" for the Transportation of Agricultural Products), there is no need for a so-called "green pass" at all.

As for the green channel policy for agricultural product transportation implemented in Jiangsu, only about 2,000 green channel passes have been issued so far, and the expressway is not free (it was only after March 2008 that the "one vertical and two horizontal" highways for agricultural product transportation were opened in accordance with national requirements. Channels (Xuzhou East Ring Road Section of Beijing-Fuzhou Expressway, Xuzhou-Lian Expressway, and Jiangsu Section of Shanghai-Nanjing Expressway) still charge fees for other expressways, which increases the cost of agricultural product circulation and also affects the healthy and rapid development of the agricultural product transportation industry.

(4) Jiangsu attaches less importance to the development of "farmhouse entertainment" than Zhejiang. In recent years, Zhejiang has regarded the development of farmhouse entertainment as a new income point for farmers. The provincial government not only arranges 15-20 million yuan in financial funds to support farmhouse entertainment every year. To promote development, tax incentives have also been introduced. In the initial stage of farmhouses, business tax and income tax exemptions will be provided for the first three years. After the preferential period, the business tax threshold for business owners who pay taxes on time will be increased to 5,000 yuan. The government and media also said. The Zhejiang Provincial Government has frequently taken measures to promote the healthy and rapid development of farmhouses. In recent years, the Zhejiang Provincial Government has organized farmhouse leisure tourism experience exchange meetings, regularly released provincial “farmhouse” leisure tourism information on the “Zhejiang Farmers Mailbox”, and held Zhejiang (Shanghai) Exhibition and sales of famous and special new agricultural products and leisure and sightseeing agriculture (farmhouses) exhibition and promotion meeting (as of 2007, it has been held 4 times); in 2007, the Zhejiang Provincial Government also issued the No. 1 document "Opinions on Accelerating the Development of Farmhouse Leisure Tourism" specifically for farmhouses "; Zhejiang Daily also held the "Jiangnan Fishing Village Cup" Farmhouse Specialty Dish Contest. Leaders such as the deputy secretary of the Provincial Party Committee and the Deputy Governor attended the event, which attracted a lot of attention; the Zhejiang Provincial Government also carried out environmental improvement projects for farmhouse tourist spots. According to reports, the "Thousand Villages Demonstration, Ten Thousand Villages Renovation" project renovation has a very obvious role in promoting farmhouse entertainment. The renovated farmhouse tourist spots not only have better air, but also have better environmental sanitation. The number of tourists has increased significantly compared with before. However, Jiangsu Province only saw a significant increase at the end of 2006. Except for the special support of 5 million yuan, the government has no other financial support.

(5) Jiangsu’s support for entrepreneurship of small and medium-sized enterprises is not as strong as Zhejiang’s "Regulations on Promoting the Development of Small and Medium-sized Enterprises". It stipulates that “relevant departments of people’s governments at or above the county level shall provide policy consultation and convenient measures for small and medium-sized enterprise entrepreneurs in the fields of industry and commerce, finance and taxation, financing, talent files, household registration management, children’s schooling, housing, social security, etc., to improve the quality of services.” In comparison, the "Regulations on the Promotion of Small and Medium-sized Enterprises in Jiangsu Province" only requires that "relevant departments should provide policy consultation and related services to small and medium-sized enterprises in terms of employee household registration, file management, social insurance, etc.", and some of these consultations and services are chargeable. . It can be seen that the scope and intensity of support in Jiangsu are not as good as those in Zhejiang.

(6) Jiangsu’s private enterprises have fewer financing channels than Zhejiang. In order to dispel commercial banks’ concerns about small business credit, Zhejiang established in 2005. Small business loan risk compensation fund. The provincial finance allocated 25 million yuan in small business loan risk compensation funds that year, which increased to 45 million yuan in 2006. In 2006, more than 70,000 small businesses in Zhejiang received loan support. The 262 financial branches included in the scope of risk compensation issued an average monthly small business loan (based on risk compensation) of 24.475 billion yuan, an increase of 10.423 billion yuan from the beginning of the year. After receiving the loans, these small businesses increased sales by more than 50 billion yuan, increased profits and taxes by more than 4 billion yuan, and created nearly 300,000 new jobs. Although Jiangsu's compensation fund management measures for small business loan risks have been formulated and were originally scheduled to be implemented on January 1, 2007, the actual obtaining of loans by small businesses has been delayed until 2008.