THE IMPACT OF DIGITAL ENTREPRENEURIAL COMPETENCIES, DIGITAL LITERACY AND GOVERNMENT SUPPORT ON DIGITAL ENTREPRENEURSHIP USING REGRESSION ANALYSIS
DOI:
https://doi.org/10.2478/eoik-2025-0025Keywords:
Digital Entrepreneurship, Digital Literacy, Digital entrepreneurial competence, Government supportAbstract
Digital entrepreneurship in rural Malaysia is limited, with small busi-
nesses struggling to use digital tools and develop entrepreneurial
skills. This study explores the impact of digital literacy, entrepreneur-
ial skills, and government support on small businesses, areas that have
not been fully studied. It also looks at the role of youth in Terengganu
in promoting digital entrepreneurship, in line with Malaysia’s Na-
tional Entrepreneurship Policy. The study found that digital literacy
and entrepreneurial competencies explain 37.3% of digital entrepre-
neurship, with government support and interaction effects increasing
this effect by an additional 5%. Digital literacy and entrepreneurial
competencies significantly impact digital entrepreneurship, with en-
trepreneurial competencies having a stronger influence. Government
support does not impact digital entrepreneurship, but combining dig-
ital literacy with government support does. In rural areas, limited re-
sources and knowledge may reduce the effectiveness of government
aid. The government should prioritize training programs, like work-
shops and mentorships, to improve digital skills and business capabil-
ities, in collaboration with academic institutions. This strategy would
assist business owners in acquiring the useful abilities required for
success in the digital economy. It highlights the importance of contin-
uous learning and offers key insights for educators and policymakers
to foster skills.
References
Achmad, A., Karto, A., & Asril, A. (2024). Small Business Empowerment Strategy in the Agricultural
Sector Through Digital Entrepreneurship. International Journal of Management Science and
Information Technology, 4(2), 326-335. https://doi.org/10.35870/ijmsit.v4i2.3097
Ali, S. A. M., Kassim, E. S., Shahrom, M., Humaidi, N., & Zamzuri, N. H. (2020). Fostering digital en-
trepreneurship capabilities at rural schools: A Malaysian case study. Malaysian Journal of Con-
sumer and Family Economics, 24, 243–260. https://majcafe.com/wp-content/uploads/2022/11/
Vol-24-2020-Paper-10.pdf
Belas, J., Metzker, Z., & Hotkova, A. (2024). The Impact of Human Resource Management Factors
on Business Sustainability in the Manufacturing Sector: A Comparative Study of SMEs in the
Visegrad Four Countries. Journal of Organizations, Technology and Entrepreneurship, 2(3),
-186. https://doi.org//10.56578/jote020304
Chen, C.-L., Lin, Y.-C., Chen, W.-H., Chao, C.-F., & Pandia, H. (2021). Role of Government to En-
hance Digital Transformation in Small Service Business. Sustainability, 13(3), 1028. https://doi.
org/10.3390/su13031028
Duc, N. M., Nhuan, N. H., Huong, T. T. T., Hai, N. M., & Vien, T. D. (2024). Revolutionising agriculture and
rural economy through digital transformation: Bridging theory with practice. The VMOST Journal of
Social Sciences and Humanities, 66(2), 20-29. https://doi.org/10.31276/VMOSTJOSSH.2024.0022
Firmansyah, D., Wahdiniwaty, R., & Budiarti, I. (2023). Entrepreneurial Performance Model: A Busi-
ness Perspective in the Digital Economy Era. Jurnal Bisnis, Manajeman, Dan Ekonomi, 4(2),
–150. https://doi.org/10.47747/jbme.v4i2.1106
George, D., & Mallery, P. (2019). IBM SPSS Statistics 26 Step by Step. Routledge. https://doi.
org/10.4324/9780429056765
George, N., & Edghiem, F. (2023). Digital Entrepreneurship, 56–78. https://doi.org/10.4018/978-1-
-7416-7.ch003
Huseyn, A., Abasova, Y. (2024). Ecological entrepreneurship: Empirical research on the sustainable
development of ecotourism in Azerbaijan. Collection of papers new economy, 2, 1–13. https://
doi.org/10.61432/CPNE0201001h
Ibrahim, M. Y. (2010). Research Data Analysis for Education & Social Sciences. Bandar Ilmu.
Jayeola, O., Sidek, S., Sanyal, S., Hasan, S. I., An, N. B., Mofoluwa Ajibade, S. S., & Phan, T. T.
H. (2022). Government financial support and financial performance of SMEs: A dual sequen-
tial mediator approach. Heliyon, 8(11), e11351. https://www.cell.com/heliyon/fulltext/S2405-
(22)02639-1
Ji, S., & Zhuang, J. (2023). The Impact Path of Digital Literacy on Farmers’ Entrepreneurial Perfor-
mance: Based on Survey Data in Jiangsu Province. Sustainability, 15(14), 11159. https://doi.
org/10.3390/su151411159
Kollmann, T., & Jung, P. B. (2022). What is Digital Entrepreneurship? Fundamentals of Company
Founding in the Digital Economy. Edward Elgar Publishing. https://www.digital-entrepre-
neurship.com/#:~:text=reference%20for%20establishing%20the%20company,factor%20with-
in%20the%20Digital%20Economy.&text=Economy
Kulub Abd. Rashid, N., Muhamad, S., Hussain, N. E., Mohamad Akhir, N. H., Ahmat, N., & Yuli-
ta. (2022). Single Mother in The Digital Economy: Stimulating Entrepreneurship & Covid-19
Challenges. Malaysian Journal of Consumer and Family Economics, 29, 483–507. https://maj-
cafe.com/wp-content/uploads/2022/11/PAPER19-MAJCAFE-VOL29a.pdf
Matviienko-Biliaieva, G., Krasnorutskyy, O., Salionovych, L., Serhii, V. Larina, T. (2023). The Im-
portance of Digitization in the Post-War Recovery of the Economy. Collection of papers new
economy, 1. 42-63. https://doi.org/10.61432/CPNE0101042m
Mićić, L., & Mastilo, Z. (2022). Digital workplace transformation: Innovative approach after covid-19
pandemic. Economics-Innovative and Economics Research Journal, 10(2), 63-76. https://doi.
org/10.2478/eoik-2022-0014
Mian, S., Lamine, W., & Fayolle, A. (2016). Technology Business Incubation: An overview of the
state of knowledge. Technovation, 50–51, 1–12. https://doi.org/10.1016/J.TECHNOVA-
TION.2016.02.005
Milošević, I. M., Plotnic, O., Tick, A., Stanković, Z., & Buzdugan, A. (2024). Digital Transformation
in Manufacturing: Enhancing Competitiveness Through Industry 4.0 Technologies. Precision
Mechanics & Digital Fabrication, 1(1), 31-40. https://doi.org/10.56578/pmdf010104
Mishra, P. (2023). Digital Entrepreneurship (pp. 11–26). https://doi.org/10.4018/978-1-6684-5871-6.ch002
Montgomery, D. C., Peck, E. A., & Vining, G. G. (2021). Introduction to Linear Regression Analysis (Sixth).
John Wiley & Sons, Inc. https://content.e-bookshelf.de/media/reading/L-16125104-1a3a7c5bd1.pdf
Morgan, G. A., Barrett, K. C., Leech, N. L., & Gloeckner, G. W. (2019). IBM SPSS for Introductory
Statistics: Use and Interpretation. Routledge. https://doi.org/10.4324/9780429287657
Mulyati, S. (2023). Pengaruh Pendidikan Kewirausahaan dan Digital Literacy Terhadap Minat Ber-
wirausaha Mahasiswa Dengan Efikasi Diri Sebagai Mediator. Jurnal Pendidikan Ekonomi
(JUPE), 11(2), 222–230. https://doi.org/10.26740/jupe.v11n2.p222-230
Pallant, J. (2020). SPSS Survival Manual. Routledge. https://doi.org/10.4324/9781003117452
Pamučar, D., Božanić, D., Puška, A., & Marinković, D. (2022). Application of neuro-fuzzy system for
predicting the success of a company in public procurement. Decision Making Applications in
Management and Engineering, 5(1), 135-153. https://doi.org/10.31181/dmame0304042022p
Patru, L., Birchi, F. A., & Patru, C. L. (2023). The Relationship between Digital Technology and the
Development of the Entrepreneurial Competencies of Young People in the Medical Field. Elec-
tronics 2023, 12(8), 1796. https://doi.org/10.3390/ELECTRONICS12081796
Sariwulan, T., Suparno, S., Disman, D., Ahman, E., & Suwatno, S. (2020). Entrepreneurial Performance:
The Role of Literacy and Skills. The Journal of Asian Finance, Economics and Business, 7(11),
–280. https://doi.org/10.13106/jafeb.2020.vol7.no11.269
Sarstedt, M., & Mooi, E. (2019). Regression Analysis, 209–256. https://doi.org/10.1007/978-3-662-56707-4_7
Setiawati, R., Adriani, Z., & Wediawati, B. (2022). Entrepreneurial interest in startup business based on
entrepreneurial literacy and digital literacy. Jurnal Perspektif Pembiayaan Dan Pembangunan
Daerah, 10(4), 235–250. https://doi.org/10.22437/ppd.v10i4.18819
Simovic, V., Safi, M., Bradi´c, A., Martinovi´c, B.-M., Sarhan, H., Bhagat, R., & Ivanovic, D. (2023).
How Competent Are Our Students in Digital Entrepreneurship? Proceedings 2023, 85(1), 18.
https://doi.org/10.3390/PROCEEDINGS2023085018
Singh, R., Kumar, V., Singh, S., Dwivedi, A., & Kumar, S. (2024). Measuring the impact of digital
entrepreneurship training on entrepreneurial intention: the mediating role of entrepreneurial
competencies. Journal of Work-Applied Management, 16(1), 142–163. https://doi.org/10.1108/
JWAM-11-2022-0076/FULL/PDF
Triyono, M. B., Mutohhari, F., Kholifah, N., Nurtanto, M., Subakti, H., & Prasetya, K. H. (2023a).
Examining the Mediating-Moderating Role of Entrepreneurial Orientation and Digital Compe-
tence on Entrepreneurial Intention in Vocational Education. Journal of Technical Education and
Training, 15(1), 116–127. https://doi.org/10.30880/jtet.2023.15.01.011
Triyono, M. B., Mutohhari, F., Kholifah, N., Nurtanto, M., Subakti, H., & Prasetya, K. H. (2023b).
Examining the Mediating-Moderating Role of Entrepreneurial Orientation and Digital Compe-
tence on Entrepreneurial Intention in Vocational Education. Journal of Technical Education and
Training, 15(1). https://doi.org/10.30880/jtet.2023.15.01.011
Xie, J. L., Yang, Y. J., & Chen, J. L. (2023). Mechanisms of Digital Economy Empowering High-Quality
Development in Manufacturing: A Case Study of Hebei Province, a Traditional Manufacturing
Powerhouse in China. Journal of Organizations, Technology and Entrepreneurship, 1(1), 47-57.
https://doi.org/10.56578/jote010104
ZHAO, F., & Collier, A. (2016). Digital Entrepreneurship: Research and Practice. Innovation, Entrepre-
neurship and Digital Ecosystems. 9th Annual Conference of the EuroMed Academy of Business,
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 ECONOMICS - INNOVATIVE AND ECONOMICS RESEARCH JOURNAL

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.