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The Impact of Digital Entrepreneurial Competencies, Digital Literacy and Government Support on Digital Entrepreneurship Using Regression Analysis

Author

Listed:
  • Mohamad Zaleha

    (Faculty of Business, Economic and Social Development, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia)

  • Alim Nurul Shahirah Syazwani Mohd

    (Faculty of Business, Economic and Social Development, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia)

  • Rashid Noorhaslinda Kulub Abd.

    (Faculty of Business, Economic and Social Development, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia)

  • Hassim Nur Hanun Che

    (Pusat Sebaran Maklumat Nasional (NADI), Kg. Gong Batu, Setiu,Terengganu, Malaysia)

  • Anang Zuraini

    (Faculty of Business, Economic and Social Development, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia)

  • Abdullah Syahida

    (Graduate School of Business, Universiti Utara Malaysia, Kuala Lumpur Campus, Kuala Lumpur, Malaysia)

  • Nasir Aslina

    (Faculty of Fisheries and Food Science, Universiti Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia)

Abstract

Digital entrepreneurship in rural Malaysia is limited, with small businesses struggling to use digital tools and develop entrepreneurial skills. This study explores the impact of digital literacy, entrepreneurial skills, and government support on small businesses, areas that have not been fully studied. It also looks at the role of youth in Terengganu in promoting digital entrepreneurship, in line with Malaysia’s National Entrepreneurship Policy. The study found that digital literacy and entrepreneurial competencies explain 37.3% of digital entrepreneurship, with government support and interaction effects increasing this effect by an additional 5%. Digital literacy and entrepreneurial competencies significantly impact digital entrepreneurship, with entrepreneurial competencies having a stronger influence. Government support does not impact digital entrepreneurship, but combining digital literacy with government support does. In rural areas, limited resources and knowledge may reduce the effectiveness of government aid. The government should prioritize training programs, like workshops and mentorships, to improve digital skills and business capabilities, in collaboration with academic institutions. This strategy would assist business owners in acquiring the useful abilities required for success in the digital economy. It highlights the importance of continuous learning and offers key insights for educators and policymakers to foster skills.

Suggested Citation

  • Mohamad Zaleha & Alim Nurul Shahirah Syazwani Mohd & Rashid Noorhaslinda Kulub Abd. & Hassim Nur Hanun Che & Anang Zuraini & Abdullah Syahida & Nasir Aslina, 2025. "The Impact of Digital Entrepreneurial Competencies, Digital Literacy and Government Support on Digital Entrepreneurship Using Regression Analysis," Economics, Sciendo, vol. 13(1), pages 289-308.
    • Handle: RePEc:vrs:econom:v:13:y:2025:i:1:p:289-308:n:1024
    DOI: 10.2478/eoik-2025-0025
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    More about this item

    Keywords

    Digital Entrepreneurship; Digital Literacy; Digital entrepreneurial competence; Government support;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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