Digital Literacy and Individual Entrepreneurship: Empirical Evidence From China

In the internet era, digital literacy is crucial for entrepreneurial spirit. This study examines the impact of digital literacy on entrepreneurial behavior, based on the Chinese General Social Survey (CGSS) data. Employing a Probit model to estimate the marginal effects, we find that better digital literacy increases the chances of starting a business—both out of necessity (survival entrepreneurship) and opportunity (opportunity entrepreneurship). Digital literacy helps by improving access to information and enhancing social capital accumulation. Further analysis reveals that digital literacy has a more pronounced effect on middle-aged male individuals with lower education levels and living in rural areas. Overall, this study enhances our comprehension of the welfare implications of digital literacy, offering valuable insights for enhancing the digital literacy of residents to boost the entrepreneurial spirit.