Economic growth: The role of digitalization and entrepreneurship

Abstract

Research widely acknowledge that entrepreneurial activity is a driving force for economies. Recently, leading political institutions and scholars argue that digitalization is a central factor for economic growth and a fundamental right for citizens and societies. Moreover, studies have introduced the emergence “digital entrepreneurship” as a new research stream, to indicate an entrepreneurial process triggered by the infusion of new digital technologies in various aspects of entrepreneurship. However, research has often treated entrepreneurship and digitalization in isolation, partially neglecting a combined role as explanatory factors and driving forces for economic growth. To cope with this research gap, with this study, we aim at exploring how entrepreneurship and digitalization may impact economic growth. By employing a quantitative approach, we observe that entrepreneurship is positively related to economic growth and that digitalization mediates this relationship. Building on previous studies, we propose an original process model for measuring entrepreneurial activity made up of three phases, entrepreneurial quantity, quality and outcome. Findings show that only the last two phases of entrepreneurial quality and outcome have a positive impact on economic development. We believe that scholars can find interesting this research to further explore the role of digital entrepreneurship for economies and societies. Finally, policymakers can find useful our original method to measure the entrepreneurial activity and the impact that digitalization and entrepreneurship have on their economies.