ENTREPRENEURSHIP DEVELOPMENT AND ECONOMIC POLICY FRAMEWORKS IN THE ERA OF THE DIGITAL ECONOMY

Abstract

Entrepreneurship is widely acknowledged as a fundamental engine of economic development and structural transformation in contemporary economies. In the context of rapid digitalization, the effectiveness of entrepreneurship increasingly depends on the quality of economic policies and the extent to which digital technologies are integrated into the business environment. This study examines the influence of economic policies on entrepreneurship development while also assessing the moderating role of digital technologies in enhancing entrepreneurial growth and innovation within the digital economy. Adopting a theoretical reasoning approach supported by a systematic review of extant literature, the study synthesizes evidence from prior empirical and conceptual studies on entrepreneurship, policy frameworks, and digital transformation. The findings indicate a strong positive association between supportive government policies, including targeted entrepreneurship interventions and accommodative monetary policies, and the growth of small and medium-scale enterprises. Such policies contribute to a favorable entrepreneurial ecosystem by reducing entry barriers, stimulating innovation, and promoting business sustainability. Furthermore, the adoption of digital technologies significantly amplifies entrepreneurial performance by enabling innovation, improving market access, and facilitating the development of new business models and competitive strategies. The study concludes that coherent economic policies, when complemented by robust digital infrastructure and adoption of technology, are critical for fostering entrepreneurship in the digital economy. It therefore recommends that policymakers formulate inclusive and adaptive economic policies, expand investment in digital infrastructure, promote digital and entrepreneurial skills development through education and training, and strengthen public–private partnerships. Continuous monitoring and evaluation mechanisms are also essential to ensure policy relevance and effectiveness over time.