Digitalization and Entrepreneurial Engagement in Developing Economies Based on Evidence from Pakistan

This study examines how digitalization, measured through mobile access, computer access, and internet connectivity, affects entrepreneurship in Pakistan's non-agricultural sector. Using nationally representative data from the Pakistan Social and Living Standards Measurement (PSLM) Survey 2020-2021 and a sample of 192,670 individuals, a binary logistic regression model estimates the likelihood of engaging in entrepreneurial activity. The results show that mobile access has a strong positive association with entrepreneurship, while internet connectivity has a smaller but significant effect. In contrast, computer access is negatively associated with entrepreneurship, indicating its stronger relevance to formal employment or education. Gender and regional analyses reveal that mobile and internet access benefit rural residents and men more than women, reflecting persistent barriers to women's digital participation. Overall, the findings highlight the need to expand mobile and internet services to promote inclusive and equitable entrepreneurial growth in Pakistan and similar developing economies.