Examining the Impact of the Digital Economy and the Internet of Things on Entrepreneurial Development (A Study from the Perspective of Startup Business Owners in Kermanshah Province)

Abstract

Entrepreneurship is widely recognized as a key driver of economic growth, and governments across societies support entrepreneurial activities through various programs and incentives. The objective of this study was to examine the impact of the digital economy and the Internet of Things on entrepreneurial development. In terms of purpose, the research is applied, and in terms of nature, it is descriptive-survey. The data collection method was library-based, and the tool used was note-taking. The statistical population consisted of managers and employees of startup businesses in Kermanshah Province. Due to the dispersion of the population, simple random sampling was employed, and the sample size was determined to be 384 individuals. Data collection was conducted in the field using questionnaires, including a researcher-developed digital economy questionnaire, a researcher-developed Internet of Things questionnaire, and the entrepreneurial development questionnaire by Antoncic and Hisrich (2003). The validity of the questionnaires was confirmed by experts, and their reliability was calculated using Cronbach’s alpha, yielding coefficients of 0.79 for the digital economy, 0.81 for the Internet of Things, and 0.78 for entrepreneurial development. Data analysis was performed using descriptive statistics (mean and standard deviation) and structural equation modeling with the aid of SPSS version 26 and AMOS version 24 software. The findings indicated that the digital economy, with a significance level of 0.001 and a standardized coefficient of β = 0.51, and the Internet of Things, with a significance level of 0.001 and a standardized coefficient of β = 0.12, have a significant effect on entrepreneurial development. Additionally, goodness-of-fit indices across all factors were at an acceptable level. The results suggest that the digital economy and the Internet of Things are two critical factors and tools influencing the development of entrepreneurship in startup businesses.