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The impact of internet on entrepreneurship

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  • Tan, Ying
  • Li, Xiaoying

Abstract

Innovation and entrepreneurship are important driving forces for economic growth, and the Internet plays an essential role in entrepreneurship activities. This paper studies the impact of the Internet on entrepreneurship and its mechanism by using China Family Panel Studies (CFPS) dataset in 2014 and 2016. Our empirical findings indicate that the Internet has a significant and positive influence on entrepreneurship, and the results remain robust even after addressing endogeneity. Moreover, heterogeneous examinations suggest that the Internet is more beneficial for opportunistic entrepreneurship and in rural areas. Further mechanism analysis shows that the Internet promotes entrepreneurship mainly through facilitating entrepreneurs to access information and helping entrepreneurs obtain informal financing.

Suggested Citation

  • Tan, Ying & Li, Xiaoying, 2022. "The impact of internet on entrepreneurship," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 135-142.
    • Handle: RePEc:eee:reveco:v:77:y:2022:i:c:p:135-142
    DOI: 10.1016/j.iref.2021.09.016
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    References listed on IDEAS

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    Cited by:

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    3. Leogrande, Angelo, 2023. "The Usage of Internet in the Context of ESG Model at World Level," MPRA Paper 117743, University Library of Munich, Germany.

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    More about this item

    Keywords

    Entrepreneurship; Internet; Informal financing; Information accessibility; China;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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