Digital Skills and Entrepreneurship in Mexico: Evidence from Probit Models and Implications for Digital Inclusion Policy

This study examines the relationship between digital skills and entrepreneurial intention in Mexico, emphasizing demographic, educational, and technological determinants. Despite the recognized importance of digitalization, most Mexican entrepreneurs possess only basic competencies, which constrains productivity and growth. Using data from the Digital Skills Profiler (50,582 individuals), binary probit models were estimated to assess the effect of digital skills on both current and prospective entrepreneurs. Results reveal a paradox: individuals with advanced digital skills are less frequently engaged in entrepreneurship, often opting instead for better paid and more stable employment in the formal labor market. When engaging in entrepreneurship, individuals with advanced digital skills tend to concentrate in service sector or non-conventional activities, exhibiting weaker connections to trade in goods. Women and older generations face greater barriers to acquiring digital competencies, whereas younger cohorts show stronger skills that do not necessarily translate into opportunity-driven ventures. Necessity-driven entrepreneurship predominates, with only a small fraction of ventures evolving into opportunity-based projects. The findings highlight the need for differentiated policy approaches: fostering innovative, competitive entrepreneurship requires distinct instruments from those designed to support subsistence ventures. Aligning digital inclusion and entrepreneurship strategies with Sustainable Development Goals 8 and 9 will be crucial to narrowing digital divides and promoting sustainable, inclusive growth.