The Impact of Digital Entrepreneurial Competencies, Digital Literacy and Government Support on Digital Entrepreneurship Using Regression Analysis

Abstract Digital entrepreneurship in rural Malaysia is limited, with small businesses struggling to use digital tools and develop entrepreneurial skills. This study explores the impact of digital literacy, entrepreneurial skills, and government support on small businesses, areas that have not been fully studied. It also looks at the role of youth in Terengganu in promoting digital entrepreneurship, in line with Malaysia’s National Entrepreneurship Policy. The study found that digital literacy and entrepreneurial competencies explain 37.3% of digital entrepreneurship, with government support and interaction effects increasing this effect by an additional 5%. Digital literacy and entrepreneurial competencies significantly impact digital entrepreneurship, with entrepreneurial competencies having a stronger influence. Government support does not impact digital entrepreneurship, but combining digital literacy with government support does. In rural areas, limited resources and knowledge may reduce the effectiveness of government aid. The government should prioritize training programs, like workshops and mentorships, to improve digital skills and business capabilities, in collaboration with academic institutions. This strategy would assist business owners in acquiring the useful abilities required for success in the digital economy. It highlights the importance of continuous learning and offers key insights for educators and policymakers to foster skills.