Financial pressure: The greatest barrier for individual business households in participating in compulsory social insurance

The amended Law on Social Insurance expands compulsory participation to individual business households in order to enhance social security coverage and ensure long-term benefits for workers. However, in practice, financial pressure has become the greatest barrier preventing many households from fulfilling this obligation. This study analyzes the nature of such pressure and its negative impact on household cash flow, thereby explaining the hesitation and delay among small traders. It also proposes solutions to alleviate financial pressure to promote participation in compulsory social insurance.