The impact of digital technology on entrepreneurship——Evidence from China General Social Survey

by Kedong Wu, Mengchun Zhu, Yahui Qu

In light of the rapid development of digital technology, it is imperative to study the impact of digital technology on the labour force’s entrepreneurial choices with the utmost urgency. This paper first constructs a theoretical mechanism for how digital technology affects individual entrepreneurship. It then empirically examines data from the China General Social Survey (CGSS) to test the theory. The results show that digital technology significantly increases individual entrepreneurial choices. Furthermore, the conclusions of the study are robust even when the estimation method and variable measurement are changed. Finally, the study finds that digital technology has the greatest impact on entrepreneurship among individuals with low education, the second-largest impact on those with medium education, and the third-largest impact on those with high education. Individuals with higher education levels have the second largest impact on the entrepreneurship of individuals with higher education levels, while the smallest impact is observed in this group. Digital technology development has a stronger role in promoting entrepreneurship of individuals with urban household registration than those with rural household registration. In terms of sub-region, digital technology has a larger role in individual entrepreneurship in the eastern and central regions, and has a less significant role in the western region. The findings of this study suggest that there is a need to implement measures to accelerate the pace of digital technology development, enhance the training of entrepreneurial skills and attitudes among highly educated individuals, and direct efforts towards enhancing digital technology development in rural and western China.