Entrepreneurs’ use of internet and social media applications

Abstract

While it is recognized that the Internet and entrepreneurial opportunity are linked, the majority of studies analyzing business use of the Internet focus on small and medium-sized enterprises (SMEs). To address a need for adoption studies focused on new ventures, which differ from SMEs in terms of organizational stage and number of employees, this study analyzes survey data from entrepreneurs to understand factors that influence the adoption of multiple Internet and social media platforms, and the role of business incubation facilities in providing information technology assistance to these ventures. Regression analysis of survey data reveal that prior entrepreneurial experience was the most important factor in explaining a diverse number of Internet application and social media use. This finding likely stems from differences in cognitive frameworks between novice and experienced entrepreneurs, which impacts their ability to recognize opportunities and respond to technological change. The location of a new venture within a business incubation facility did not help in the diverse use of Internet applications. This result did vary by gender as model results highlighted that women in business incubation facilities were more likely to use a diversity of Internet applications than those not located in these facilities. These findings point to policy implications regarding the implementation of technology training programs for female entrepreneurs, and digital awareness/ training for novice entrepreneurs.