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

Mohamad Zaleha, Alim Nurul Shahirah Syazwani Mohd, Rashid Noorhaslinda Kulub Abd., Hassim Nur Hanun Che, Anang Zuraini, Abdullah Syahida and Nasir Aslina ()
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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

Economics, 2025, vol. 13, issue 1, 289-308

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.

Keywords: Digital Entrepreneurship; Digital Literacy; Digital entrepreneurial competence; Government support (search for similar items in EconPapers)
JEL-codes: C1 L26 L31 M11 M15 M21 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:econom:v:13:y:2025:i:1:p:289-308:n:1024

DOI: 10.2478/eoik-2025-0025

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