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The Impact of Internet Usage On Entrepreneurship In Indonesia

Author

Listed:
  • Dwi Rahmadi Nur Fathoni

    (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)

  • Evi Noor Afifah

    (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)

Abstract

This study aims to determine the effect of internet usage on entrepreneurship in Indonesia. Probit regression is used in this study because the dependent variable is a binary category that indicates a family’s involvement in entrepreneurial activities. The data used in this study is secondary data sourced from the Survei Sosial Ekonomi Nasional (Susenas) in 2020 and 2021. The results show that internet usage increases the probability of entrepreneurship in Indonesia by 7.4 percentage points and is statistically significant. Further analysis shows that the effect of the internet is greater for necessity-based entrepreneurship and only affects rural areas in Indonesia. This research may have implications to add to the literature for entrepreneurship development in Indonesia to compete globally.

Suggested Citation

  • Dwi Rahmadi Nur Fathoni & Evi Noor Afifah, 2024. "The Impact of Internet Usage On Entrepreneurship In Indonesia," Gadjah Mada Economics Working Paper Series 202403005, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada.
    • Handle: RePEc:gme:wpaper:202403005
    as

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    References listed on IDEAS

    as
    1. Douglas Cumming & Sofia Johan, 2010. "The Differential Impact of the Internet on Spurring Regional Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(5), pages 857-884, September.
    2. Ding, Na & Gu, Leilei & Peng, Yuchao, 2022. "Fintech, financial constraints and innovation: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 73(C).
    3. Yunis, Manal & Tarhini, Abbas & Kassar, Abdulnasser, 2018. "The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship," Journal of Business Research, Elsevier, vol. 88(C), pages 344-356.
    4. Joseph E. Stiglitz, 2002. "Information and the Change in the Paradigm in Economics," American Economic Review, American Economic Association, vol. 92(3), pages 460-501, June.
    5. Nicole Ballouz Baker & Mona Said Boustany & Maroun Khater & Christian Haddad, 2020. "Measuring the indirect effect of the Internet on the relationship between human capital and labor productivity," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 821-838, November.
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    Keywords

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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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