Pixels to Paychecks: Understanding The Determinant of Latent Entrepreneurial Transition in Digital Context

• Published in: SAGE open 2024-10, Vol.14 (4)
• Main Authors: Sun, Xinbo, Usman, Magaji Abdullahi
• Format: Article
• Language: English
• ISSN: 2158-2440; 2158-2440
• DOI: 10.1177/21582440241288928

In the ever-changing landscape of China’s digital economy, comprehending the transition drivers from latent to active participation in entrepreneurship is critical. This research explores the factors shaping the decisions of latent entrepreneurs to become active entrepreneurs in a digital context. Using simple random sampling, this study randomly selected 18 industries within China’s major cities. This study collected cross-sectional data from 485 respondents in high-tech and low-tech industries across six major Chinese cities and tested the model using partial least structural equation modeling (PLS-SEM). Statistical findings conducted by SmartPLS reveal a nuanced interplay between personal factors and external traits in shaping the transition to active entrepreneurship. In particular, entrepreneurial competence, digital skills and literacy, and adaptability are crucial personal factors influencing this transition. Access to the necessary technology, startup cost, market and customer base, and government support are external traits found to significantly shape individual decisions to venture into digital entrepreneurship. Surprisingly, Logistics and Transportation (LAT) had no substantial impact on the transformation. This investigation strengthens entrepreneurship theory while also providing policymakers and industry actors with practical insights. Personalized training for entrepreneurs, spending on digital infrastructure, evidence-based regulations, and enhanced business innovation initiatives are among the recommendations. Plain language summary Comprehending Factors Shaping the Decisions of Individuals with entrepreneurial aspirations to become active Entrepreneurs in a Digital context This study investigates why some people in China go from dreaming about starting a business to actually executing it, particularly in the digital sphere. This study investigated elements that impact this transition, which include personal factors and external traits. To do that this study randomly selected 485 persons from various industries and cities in China and evaluated their data using a method known as partial least structural equation modeling. In this study, we discovered that personal factors such as individual skills in digital technology, personal competence, and adaptability have a significant impact on their decision to establish a business. External forces including access to technology, enough funding, establishing markets and customers and political as