Direct and Indirect Effects of ICT Infrastructure, Skills, and Use on Entrepreneurship

Abstract

The information and communication technology (ICT) enabling infrastructure, requisite skills, and subsequent usage in the country could facilitate ease of doing business (EDB) and support the heterogeneous distribution of resources for new businesses to flourish and remain competitive. However, from a policy perspective, the pathways through which ICT impacts entrepreneurial activities in a country are not clearly understood. In this study, we empirically investigate the direct and indirect (via EDB) effect of ICT infrastructure, skills, and use (at business, government, and individual level) in influencing entrepreneurial activity in a country. The results show that the citizens' ICT skills and ICT use, directly and indirectly, impact entrepreneurial initiatives in a country. In contrast, ICT infrastructure and use by the government only have an indirect impact on them. The study's findings should help guide national initiatives for promoting the creation of new businesses in a country.