Factors Behind Digital Entrepreneurship Adoption by Egyptian MSEs

Document Type

Conference Proceeding

Publication Date

2021

Abstract

Abstract: In Egypt, micro, small, and medium enterprises (MSMEs) are dominated with micro-enterprises, most of which are in the informal sector. Conventionally, Egyptians have been risk-averse, shying away from starting their own businesses. However, this mindset has recently changed, especially among women and the youth, and more so with the advent of information and communication technologies, particularly social media. This study examines the determinants of engaging in digital entrepreneurship (DE), focusing on women and the youth who are owners of informal MSMEs. The study combines the theory of planned behaviour with the diffusion of innovation theory as a conceptual framework. It tests whether an entrepreneur's characteristics, attitudes, goals, and the innovation attributes of social media, in terms of perceived relative advantage, trialability, and observability have resulted in informal MSMEs' DE adoption. A questionnaire was constructed, and data were collected through phone interviews with 408 Egyptian women and youth male entrepreneurs who own informal MSMEs that only operate online. Results of the statistical analysis reveal the significantly negative impact of self-confidence and boredom on DE adoption. In contrast, making money, connectivity, self-actualization, and minimizing direct costs positively affects DE adoption. Research on MSMEs in Egypt is limited due to the lack of published data, especially regarding the informal ones. Furthermore, studies tackling DE adoption are scarce. This research contributes to the scant literature by providing a modified theoretical framework for future academic studies. The findings will be useful to future entrepreneurs. educators and policy makers to target economic development through MSME creation and the inclusion and empowerment of women and the youth.

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