The Impact of Internet Usage On Entrepreneurship In Indonesia

Dwi Rahmadi Nur Fathoni () and Evi Noor Afifah ()
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Dwi Rahmadi Nur Fathoni: Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada
Evi Noor Afifah: Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada

No 202403005, Gadjah Mada Economics Working Paper Series from 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.

Keywords: internet; entrepreneurship; probit; susenas; Indonesia. (search for similar items in EconPapers)
JEL-codes: D1 J1 M2 O1 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2024-03
New Economics Papers: this item is included in nep-ent, nep-ict, nep-sbm and nep-sea
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