Digital Literacy Boosts Entrepreneurial Intention Through Enhanced Self-Belief Among Millennials in Jakarta

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FORMOSA NEWS

Despite the tech-savvy nature of Indonesia's millennial generation, many struggle to bridge the gap between entrepreneurial aspirations and actual business creation. A study conducted by Ifanny Nurleli Agustin, Rita Yuni Mulyanti, and Budiman Abdulah from the Muhammadiyah University of Technology Jakarta, between November 2025 and March 2026, reveals that the key to unlocking this potential lies in personal self-belief. The findings highlight that while digital skills are beneficial, they primarily fuel entrepreneurial intention by significantly strengthening an individual's self-efficacy.

Indonesia currently faces a persistent paradox: roughly 35% of its youth aspire to be entrepreneurs, yet the actual national entrepreneurship rate remains under 4%. Understanding why so many ambitious young people hesitate to launch their own ventures is crucial for economic development, especially as the nation shifts toward a digital economy. This research addresses this discrepancy by examining the drivers behind the intent to establish and manage a business.

To understand these drivers, the research team surveyed 250 millennials residing across Jakarta. The study examined how three main factors—human resource quality, digital literacy, and social support—influence the desire to start a business. They specifically investigated whether self-efficacy, defined as an individual’s belief in their own capability to successfully perform specific tasks and achieve goals, acts as a bridge between these factors and the ultimate decision to become an entrepreneur.

The research findings provide clear insights into what motivates potential entrepreneurs:

• Self-Efficacy is the Decisive Driver: An individual’s belief in their own capability is the strongest predictor of their intent to start a business.
• Digital Skills Build Confidence: While digital literacy does not directly turn someone into an entrepreneur, it significantly boosts their self-efficacy, making them feel more prepared to face business challenges in the digital landscape.
• The Indirect Path: Digital literacy drives entrepreneurial intention indirectly by strengthening the confidence of potential business owners.
• Limited Direct Impact: Surprisingly, general human resource quality and external social support did not show a statistically significant direct impact on entrepreneurial intention in this specific group, suggesting that internal psychological factors outweigh external structural ones.

These results suggest a paradigm shift for educators and policymakers. Training programs should move beyond just teaching technical digital skills; they must focus on empowerment initiatives that foster psychological readiness and self-confidence. As the researchers from the Muhammadiyah University of Technology Jakarta conclude, the path to boosting youth entrepreneurship lies in psychological empowerment as much as it does in skill acquisition.

Author Profile

This study was authored by Ifanny Nurleli Agustin, Rita Yuni Mulyanti, and Budiman Abdulah from the Muhammadiyah University of Technology Jakarta. Their collective expertise spans human resource management, digital literacy development, and the psychological factors driving entrepreneurial behavior.

Source Information:

• Article Title: The Mediating Role of Self-Efficacy in the Effects of Human Resource Quality, Digital Literacy, and Social Support on Entrepreneurial Intention
• Year of Publication: 2026

• DOI:

  https://doi.org/10.59890/ijma.v4i3.20