Push–Pull Factors and Entrepreneurial Activity: Digital Access, Human Capital, and Self-Employment in Indonesia and the United Kingdom
DOI:
https://doi.org/10.62794/ijober.v4i3.273Keywords:
ARDL, Entrepreneurial Activity, Human Capital, Internet Usage, Self-EmploymentAbstract
Entrepreneurial activity is widely regarded as a central driver of economic development through its contribution to innovation, employment creation, and productivity growth. This study examines the long-run and short-run relationships between internet usage, human capital, gross domestic product (GDP) per capita, unemployment, and self-employment as a proxy for entrepreneurial activity in Indonesia and the United Kingdom, within the push–pull entrepreneurship framework. Annual time-series data covering 1994–2023 for Indonesia and 2001–2023 for the United Kingdom are analyzed using country-specific Autoregressive Distributed Lag (ARDL) bounds testing models. The results reveal pronounced heterogeneity in the long-run determinants of self-employment across the two economies. In Indonesia, internet usage is positively and significantly associated with self-employment in the long run (β = 0.223, p < 0.01), whereas human capital (β = −0.493, p < 0.10) and GDP per capita (β = −0.006, p < 0.01) are negatively associated with self-employment, with a rapid error-correction adjustment of 96.7 percent per period. In the United Kingdom, unemployment is the only variable exhibiting a statistically significant long-run association with self-employment (β = 0.892, p < 0.10), while internet usage, human capital growth, and GDP per capita show no significant long-run relationship; instead, internet usage, human capital growth, and unemployment exert significant short-run effects, with a comparatively gradual adjustment of 31.7 percent per period. The novelty of this study lies in providing the first direct, country-specific ARDL comparison of a developing and a developed economy within a unified push–pull framework, demonstrating that identical macroeconomic factors operate through opposing directions of association and fundamentally different temporal horizons depending on a country's stage of economic development. Given the observational nature of the study and the use of self-employment as a proxy for entrepreneurial activity, these findings should be interpreted as macro-level associations rather than definitive causal effects.
References
Acs, Z. J., Autio, E., & Szerb, L. (2014). National systems of entrepreneurship: Measurement issues and policy implications. Research Policy, 43(3), 476–494. https://doi.org/10.1016/j.respol.2013.08.016
Arshed, N., Rauf, R., & Bukhari, S. (2021). Empirical contribution of human capital in entrepreneurship. Vision: The Journal of Business Perspective, 25(3), 329–340. https://doi.org/10.1177/0972150920976702
Audretsch, D. B., & Keilbach, M. (2004). Entrepreneurship capital and economic performance. Regional Studies, 38(8), 949–959. https://doi.org/10.1080/0034340042000280956
Batz Liñeiro, A., Romero Ochoa, J. A., & Montes de la Barrera, J. (2024). Exploring entrepreneurial intentions and motivations: a comparative analysis of opportunity-driven and necessity-driven entrepreneurs. Journal of Innovation and Entrepreneurship, 13(1), 11. https://doi.org/10.1186/s13731-024-00366-8
Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press. https://press.uchicago.edu/ucp/books/book/chicago/H/bo3684031.html
Bjuggren, C. M., Johansson, D., & Stenkula, M. (2012). Using self-employment as proxy for entrepreneurship: Some empirical caveats. International Journal of Entrepreneurship and Small Business, 17(3), 290–303. https://doi.org/10.1504/IJESB.2012.049578
Blanchflower, D. G. (2000). Self-employment in OECD countries. Labour Economics, 7(5), 471–505. https://doi.org/10.1016/S0927-5371(00)00011-7
Block, J., & Sandner, P. (2009). Necessity and Opportunity Entrepreneurs and Their Duration in Self-employment: Evidence from German Micro Data. Journal of Industry, Competition and Trade, 9(2), 117–137. https://doi.org/10.1007/s10842-007-0029-3
Camps, C., Kraus, S., Thomas, A., Tiberius, V., & Jones, P. (2026). Digital Entrepreneurship: A review, research synthesis, and development of a framework. Technology in Society, 84, 103124. https://doi.org/10.1016/j.techsoc.2025.103124
Chen, Y. P., Oughton, E. J., Zagdanski, J., Jia, M. M., & Tyler, P. (2023). Crowdsourced data indicates broadband has a positive impact on local business creation. Telematics and Informatics, 84, 102035. https://doi.org/10.1016/j.tele.2023.102035
Dawson, C., & Henley, A. (2012). "Push" versus "pull" entrepreneurship: An ambiguous distinction? International Journal of Entrepreneurial Behaviour & Research, 18(6), 697–719. https://doi.org/10.1108/13552551211268139
Firdaus, A. P., & Mustika Dewi, R. (2024). The Influence of E-commerce Use, Entrepreneurial Knowledge, and Entrepreneurial Motivation on Entrepreneurial Interest. JMET: Journal of Management Entrepreneurship and Tourism, 2(2), 217–228. https://doi.org/10.61277/jmet.v2i2.98
Giacomin, O., Janssen, F., Guyot, J.-L., & Lohest, O. (2023). Opportunity and/or Necessity Entrepreneurship? The Impact of the Socio-Economic Characteristics of Entrepreneurs. Sustainability, 15(14), 10786. https://doi.org/10.3390/su151410786
Gilad, B., & Levine, P. (1986). A behavioral model of entrepreneurial supply. Journal of Small Business Management, 24(4), 45–53. https://www.econbiz.de/10003559837
Gomes, S., & Lopes, J. M. (2022). ICT access and entrepreneurship in the open innovation dynamic context: Evidence from OECD countries. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), 102. https://doi.org/10.3390/joitmc8020102
Gustina, L., Utami, D. A., & Wicaksono, P. (2020). The role of cognitive skills, non-cognitive skills, and internet use on entrepreneurs' success in Indonesia. Jurnal Economia, 16(1), 14–29. https://doi.org/10.21831/economia.v16i1.30414
Huang, Y., Bu, Y., & Li, P. (2026). Pathways to prosperity: A configurational analysis of national entrepreneurship. Small Business Economics, 66(2), 849–867. https://doi.org/10.1007/s11187-025-01114-2
Indriyarti, E. R., Christian, M., & Dewi, Y. K. (2025). Entrepreneurial intention determinants for urban university students to create business start-ups: The impact of entrepreneurship education, perceived behavioral control, commitment, and nascent entrepreneurship behavior. Jurnal Ekonomi Pendidikan dan Kewirausahaan, 13(2), 277–300. https://doi.org/10.26740/jepk.v13n2.p277-300
Iskandar, J., Sukriyah, Chidir, G., Jainuri, & Simorangkir, Y. N. (2024). Digital Literacy and Entrepreneurial Attitudes: A Study of Indonesian University Students. Indonesian Journal of Management and Economic Research (IJOMER), 1(02), 1–14. https://doi.org/10.70508/87nr1468
Kim, N. K. N., & Parker, S. C. (2021). Entrepreneurial homeworkers. Small Business Economics, 57(3), 1427–1451. https://doi.org/10.1007/s11187-020-00356-6
Lubis DS, Hutagalung MWR, Irawan H, Soemitra A, & Muda I. (2024). The Influence of E-Commerce and Information Technology on Alumni Entrepreneurial Interest with Entrepreneurship Education as a Moderating Variable. https://doi.org/10.36266/JEBS/229
Mai, T. L., Tran, V. T., Phan, T. T., Nguyen, K. N., & Nguyen, Q. T. T. (2025). Impact of macro factors on country-level entrepreneurship: evidence from an empirical panel data study. Humanities and Social Sciences Communications, 12(1). https://doi.org/10.1057/s41599-025-05034-0
Martínez-Cañas, R., Ruiz-Palomino, P., Jiménez-Moreno, J. J., & Linuesa-Langreo, J. (2023). Push versus Pull motivations in entrepreneurial intention: The mediating effect of perceived risk and opportunity recognition. European Research on Management and Business Economics, 29(2), 100214. https://doi.org/10.1016/j.iedeen.2023.100214
Muggleton, N., Rahal, C., & Reeves, A. (2025). Capitalizing on a crisis: a computational analysis of all five million British firms during the Covid-19 pandemic. Journal of Computational Social Science, 8(2). https://doi.org/10.1007/s42001-025-00360-4
Nambisan, S. (2017). Digital entrepreneurship: Toward a digital technology perspective of entrepreneurship. Entrepreneurship Theory and Practice, 41(6), 1029–1055. https://doi.org/10.1111/etap.12254
Narayan, P. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37(17), 1979–1990. https://doi.org/10.1080/00036840500278103
OECD. (2021). Entrepreneurship policies through a gender lens. OECD Publishing. https://doi.org/10.1787/71c8f9c9-en
Parker, S. C., & Robson, M. T. (2004). Explaining international variations in self-employment: Evidence from a panel of OECD countries. Southern Economic Journal, 71(2), 287–301. https://doi.org/10.1002/j.2325-8012.2004.tb00640.x
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616
Pradana, M., & Kartawinata, B. R. (2020). Indonesian Private University Students’ Entrepreneurial Intention. Asia Pacific Management and Business Application, 009(02), 111–122. https://doi.org/10.21776/ub.apmba.2020.009.02.3
Ramos-Poyatos, J. D., Barrientos-Marín, J., Millán, A., Millán, J. M., & van Stel, A. (2025). Mind the digital gap: The role of regional-level general and digital human capital in shaping ICT use of different types of entrepreneurs. Journal of the Knowledge Economy, 16, 11445–11483. https://doi.org/10.1007/s13132-024-02100-x
Resta, E., Costantiello, A., Anobile, F., Laureti, L., & Leogrande, A. (2024). The opportunity driven entrepreneurship in the context of innovation systems in Europe in the period 2010–2019. International Journal of Entrepreneurship, 28(3), 1–13.
Ridwan, M., & Zaki, A. (2023). Indonesian Students’ Digital Entrepreneurial Intention from The Perspective of Self-Determination Theory. Journal of Applied Business Administration, 7(2), 209–218. https://doi.org/10.30871/jaba.v7i2.6255
Rusu, V., & Roman, A. (2017). Entrepreneurial Activity in the EU: An Empirical Evaluation of Its Determinants. Sustainability, 9(10), 1679. https://doi.org/10.3390/su9101679
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226. https://doi.org/10.5465/AMR.2000.2791611
Skica, T., Piątkowski, M. J., Abdić, A., & Lazović-Pita, L. (2025). What shapes entrepreneurial activity in the European Union? Journal of Entrepreneurship, Management and Innovation, 21(3), 77–100. https://doi.org/10.7341/20252134
Syahrin, N., Sumaji, Y., & Utami, C. (2024). Entrepreneurial ecosystem, entrepreneurial self-efficacy, and entrepreneurial intention in higher education: Evidence from East Java. JMBI UNSRAT. (Jurnal Ilmiah Manajemen Bisnis Dan Inovasi Universitas Sam Ratulangi)., 11(1), 651–669. https://doi.org/10.35794/jmbi.v11i1.54548
Tapsi, S. Al, & Rahman, A. (2025). An Analysis of Push and Pull Motivation Factors Among Women Entrepreneurs. Saree: Research in Gender Studies, 7(2), 123–136. https://doi.org/10.47766/saree.v7i2.6044
Tran, K. T., Pham, V. K., Luong, M. H., Pham, T. T., & Phan, T. T. (2025). Exploring the macro conditions for national entrepreneurship: A panel data-based analysis in developing countries. Entrepreneurial Business and Economics Review, 13(4), 23–48. https://doi.org/10.15678/EBER.2025.130402
Yáñez-Valdés, C., & Guerrero, M. (2024). Determinants and impacts of digital entrepreneurship: A pre- and post-COVID-19 perspective. Technovation, 132, 102983. https://doi.org/10.1016/j.technovation.2024.102983
Yu, Z., & Lu, K. (2023). What motivates academics toward entrepreneurship? Examining the formation of academic entrepreneurial intention from the push-pull perspective. Frontiers in Psychology, 14. https://doi.org/10.3389/fpsyg.2023.1073866
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Saeed A. A. Saif, Rokhedi Priyo Santoso
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
