E-Government and Entrepreneurship: The Perspective of Risk

Abstract

ABSTRACT Risk is an important factor that hinders entrepreneurial activities, especially for entrepreneurs with high aspirations. This study examines e-government’s impact on entrepreneurship from a risk perspective. Based on individual data from the Global Entrepreneurship Monitor, results show that e-government promotes new ventures, especially those with aspirations to grow and innovate, thus enhancing the quantity and quality of entrepreneurship. Furthermore, mechanism analysis reveals that e-government significantly reduces actual risk and fear of failure, suggesting that it creates a stable environment and decreases risk aversion, which encourages starting new ventures and high-quality entrepreneurial activities. E-government reduces entrepreneurial risk by improving country governance in three dimensions: efficiency of public services, regulatory quality, and control of corruption. Besides, e-government has larger effects on enhancing the quality of entrepreneurship in developing economies. This study provides new insight into e-government’s effects on entrepreneurship and the mechanism.