| Abstract |
This paper investigates the impact of digitalization on entrepreneurship capacity in developing economies using a sample of 20 countries from 2009 to 2021. Findings reveal a significant positive correlation between digitalization indicators, such as internet and mobile phone users, and entrepreneurship capacity, emphasizing digitalization's role in enhancing communication, information dissemination and market access for entrepreneurs. However, factors like patent applications and trade liberalization show insignificant correlations with entrepreneurship empowerment. Additionally, higher inflation rates are associated with decreased entrepreneurship capacity, while urbanization emerges as a significant motivator. To foster entrepreneurship capacity for SMEs, governments should prioritize digitalization and ICT diffusion policies, promote digital literacy, support patent registration and develop smart cities to create conducive environments for entrepreneurial activities. © 2025 World Scientific Publishing Company. |
