Digitalization in shaping female and male entrepreneurial potential

This study examines the impact of digitalization on the context shaping male and female entrepreneurial potential across 78 economies, utilizing the Female Entrepreneurship Index (FEI) and the Male Entrepreneurship Index (MEI). By analyzing the effects of digital transformation, the study aims to understand whether digital tools can reduce gender disparities in entrepreneurship or if they primarily benefit one gender. Findings indicate a positive effect of digitalization on both FEI and MEI, affirming that digital readiness enhances entrepreneurial opportunities for all. However, in economies where MEI surpasses FEI, digitalization tends to widen the gender gap, with male entrepreneurs gaining a disproportionate advantage. Conversely, in contexts where female entrepreneurship dominates, digitalization does not significantly impact the MEI-FEI gap. Additional analyses reveal that factors like economic development (gross domestic product per capita) and gender inequalities (political empowerment of women) interact with digitalization to support both genders, though competitive environments are notably more influential on female entrepreneurial potential. These insights highlight the nuanced role of digitalization in fostering entrepreneurship, suggesting policies must consider these dynamics to effectively support gender-balanced growth in entrepreneurial ecosystems.