The internet use, social networks, and entrepreneurship: evidence from China

This paper analyzes the impact of internet use on entrepreneurship activities. This is based on 2014 survey data from China Family Panel Studies (CFPS). The results show that internet use promotes the entrepreneurial tendency of Chinese entrepreneurs and affects their income levels. Moreover, such influences are moderated by the location of individuals; the impact is higher for the entrepreneurial tendency and income levels of rural residents than that of urban ones. In addition, this paper also finds that internet use stimulates entrepreneurship by promoting social networks. Furthermore, social networks bring more salient impacts to rural residents as compared to those of urban ones.