Digital Literacy and Interest in Digital Entrepreneurship among

Students at the Faculty of Economics, Business and Humanities,

UNIMUDA Sorong

Nur Afni Khairunisa, Sabaria

Faculty of Economics Business and Humanities, UNIMUDA Sorong

Corresponding email: nurafni_khairunisa@unimudasorong.ac.id

Abstract: This research aims to examine the influence of digital literacy on interest in
digital entrepreneurship among students at the Faculty of Economics Business and
Humanities, Muhammadiyah University of Education, Sorong. This research used a
quantitative approach involving 90 respondents. Data analysis uses Partial Least Square
(PLS) with the help of SmartPLS 3.0 software. The results of this research show that
digital literacy has a positive and significant effect (P<0.05) on interest in digital
entrepreneurship among students at the Faculty of Economics Business and
Humanities, Muhammadiyah University of Education, Sorong. This model has a
coefficient of determination (R2) of 51,8%. It was concluded that the digital literacy
course given to students at the Faculty of Economics Business and Humanities,
Muhammadiyah Education University, Sorong, was proven to be able to foster a digital
entrepreneurial spirit in its students.

Keywords: Digital Literacy, Digital Entrepreneurship.

INTRODUCTION
Indonesia's population growth from year to year has increased significantly. In 2020,
Indonesia's population was 270,203,900 people, and in 2022 it will increase to
275,775,800 people, or a growth rate of 1.17% per year (BPS, 2023). This increase in
population is of course accompanied by an increase in the number of the workforce. The
problem is, the job opportunities available in Indonesia are not able to absorb the entire
workforce, as a result there are a number of unemployed people.
The number of unemployed college graduates is quite worrying, reaching 9.89% of
the total unemployment in Indonesia (BPS, 2023), and this situation has the potential to
increase from year to year. One of the reasons is that job seekers who have graduated
from universities are more willing to work in the formal sector, because they think it
can guarantee their future, but the formal sector is not able to absorb the entire
workforce of college graduates.
Facing the reality of high unemployment among university graduates, these
graduates should try to create their own jobs in the non-formal sector. This effort will
be easy to achieve when while they are still students, they are equipped and formed a
spirit for entrepreneurship. For this reason, the spirit of entrepreneurship in students
before becoming graduates needs to be encouraged, starting from fostering an interest
in entrepreneurship (Hasanah and Setiaji, 2019).
Regarding efforts to foster an entrepreneurial spirit in students, many recent
studies have explored factors that can foster interest in entrepreneurship among
students at several universities (Permatasari, 2016; Susilawaty, 2022; Rahayu and
Kurniawan, 2022; Nanda and Sudiana, 2022; Anggraeni, 2021; Dewi and Susanti, 2021;

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Almi and Rahmi, 2020; Mutiah, 2022; Hadi, 2021; Fernando, 2021; Dewi and Susanti,
2021).
Muhammadiyah University of Education, Sorong which actively encourages its
students to become young entrepreneurs when they later become graduates. In this
modern era, digital competence is very important for entrepreneurs. One aspect that is
thought to foster interest in entrepreneurship in this digital era is having good digital
literacy.
Digital literacy is the knowledge and skills to use digital media, communication
tools, or networks in finding, evaluating, using, creating information, and utilizing it in a
healthy, wise, intelligent, careful, precise, and lawful manner in order to foster
communication and interaction. in everyday life (Nasrullah, et al., 2017). It is reported
that a person's good digital literacy can make it easier for him to become an
entrepreneur (Salsabila, 2019. If students have good digital literacy then these students
will later be more creative in promoting products developed through social media
without having to own or rent a place and spend a lot of capital to market their products
( Hasmiah, et al., 2021).
By considering the above matters, the Faculty of Economics Business and
Humanities, Muhammadiyah University of Education, Sorong, which has four study
programs (Accounting, Digital Business, Management and Psychology), has determined
digital literacy courses as mandatory faculty subjects. This course will equip students to
understand digital technology and really support students in digital entrepreneurship.
By providing digital literacy courses, and supported by mandatory courses in each
study program, the researchers suspect that interest in digital entrepreneurship among
students at the Faculty of Economics Business and Humanities, Muhammadiyah
University of Education, Sorong will flourish, so that after graduation becoming a
graduate will become a strong entrepreneur today. Based on this hypothesis, this
research was conducted to test the hypothesis whether digital literacy has a positive
and significant effect on interest in digital entrepreneurship among students at the
Faculty of Economics Business and Humanities, Muhammadiyah University of
Education, Sorong. It is hoped that the results of this research can become material for
further evaluation and strategies in order to increase the interest of students at the
Faculty of Economics Business and Humanities, Muhammadiyah University of
Education, Sorong in digital entrepreneurship.

METHODS
This research uses a quantitative approach to explore the relationship between digital
literacy and interest in digital entrepreneurship among students at the Faculty of
Economics Business and Humanities, Muhammadiyah University of Education, Sorong.
The population in this study were all students at the Faculty of Economics Business
and Humanities, Muhammadiyah University of Education, Sorong, totaling 301 people.
The sampling method was carried out using non-probability sampling with a purposive
sampling technique, because this sampling was limited to students who had taken or
were currently taking digital literacy courses, and the total sample obtained was 108
students.
Data collection was carried out using an instrument in the form of a questionnaire
distributed to respondents. The instruments used to measure digital literacy variables
and entrepreneurial interest variables were adapted from Mutiah (2022). The
measurement of digital literacy variables uses 8 indicators, namely X1: the ability to use

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the internet (3 statements or items), X2: the ability to use search engines (2 items), X3:
understanding of how Hypertext, Hyperlinks, Web, http browsers, html, and URLs work
(4 items), X4: understanding of the differences between books, texts, the internet (2
items), X5: the ability to analyze the background of information sources on the internet
(3 items), X6: the ability to evaluate the information content of various web pages (2
items), X7: the ability to double-check the correctness of the information obtained (3
items ), and X8: the ability to organize information (3 items). Meanwhile, measuring the
interest variable in digital entrepreneurship uses 4 indicators, namely Y1: studying the
science you like (4 items), Y2: having the urge to carry out activities and experiences (6
items), Y3: focusing on the object you like (6 items), and Y4: being interested in working
on the object you like (6 items). items).
Answer choices use five Likert scales, namely: 5 (strongly agree) to 1 (strongly
disagree), both for the digital literacy variable and the digital entrepreneurship interest
variable. For unfavorable items, the rating scale is the opposite of the rules for rating
favorable items.
Based on the results of distributing questionnaires to 108 students who met the
requirements, 90 questionnaires were returned and declared eligible for further
processing (response rate 83%). Data analysis to test this research hypothesis was
carried out using SmartPLS 3.0 with the Second Order Confirmatory approach.

RESULTS & DISCUSSION

Outer Model Evaluation
The outer model evaluation is carried out to calculate the validity and reliability of the
model. The measurement model tests used in this research are convergent validity,
discriminant validity, composite reliability, and cronbach alpha.
The convergent validity test aims to determine the loading factor value of each
indicator item. The factor loading value of an item shows the correlation between the
item and its construct (latent variable). The ideal factor loading value (meets
convergent validity) is ≥ 0.7 (Hartono, 2016).
Based on the validation test, it is known that all indicator items have factor loading
values above 0.7, except for 5 items (X1.3, X2.2, Y2.6, Y3.1, and Y4.4) were invalid so
they were excluded from the validation test. model. After that, re-estimation is carried
out to get a new model that shows all indicator items are valid (Figure 1). Based on this
new model, discriminant validity, composite reliability and cronbach alpha checks were
carried out.
The method for checking discriminant validity in this research is by observing the
average variant extracted (AVE) value. The AVE value of each variable must be above
0.5 for a good model (Hartono, 2016). The examination results show that the AVE
values of the digital literacy variables and interest in digital entrepreneurship are 0.583
and 0.577, respectively. Both AVE values are above 0.5, which indicates that the two
variables have good discriminant validity.
Apart from the validity tests that have been carried out above, reliability tests were
also carried out. In this research, composite reliability is used to test the reliability value
of indicators on a variable. A variable can be declared to meet composite reliability if it
has a value above 0.6 (Ghozali, 2018). The reliability test with composite reliability can
be strengthened by knowing the Cronbach alpha value. A variable is declared reliable if
it has a Cronbach alpha value above 0.7 (Hartono, 2016). The reliability test results
show that the composite reliability values for the digital literacy variables and interest
in digital entrepreneurship are 0.968 and 0.967 respectively; and the cronbach alpha
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value for each research variable is 0.966 and 0.964. These results indicate that each
latent variable in this study has high reliability.

Figure 1. Outer model test results after dropping item loading factor < 0.7
(Source: Processed primary data, 2023).

Inner Model Evaluation

The inner model evaluation is carried out after the outer model evaluation is fulfilled.
Inner models are used to predict relationships between latent variables for hypothesis
testing purposes. Hypothesis testing is carried out using bootstrapping. The results of
the PLS bootstrapping output on the structural model of this research are shown in
Figure 2.
The R2 and R2 (adjusted) values produced in this research are 0.518 and 0.512,
which shows that the variability of the endogenous variable (interest in digital
entrepreneurship) can be explained by the exogenous variable (digital literacy) of ±
50%. The R2 value found is moderate and it is concluded that the structural model is
quite good (Ghozali, 2018).
Table 1 presents the results of path coefficient analysis for testing the research
hypothesis. It can be seen that digital literacy (DL) has a positive and significant effect
(P Value < 0.05) on interest in digital entrepreneurship (DEI) among students at the
Faculty of Economics Business and Humanities, Muhammadiyah University of
Education, Sorong. This shows that the hypothesis proposed in this research is
accepted.

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 Figure 2. Bootstrapping Output Results [Source: Primary Data (processed), 2023].

Table 1. Path Coefficients and Hypothesis Testing

Standard
Original Sample Mean T Statistics P
Path Deviation
Sample (O) (M) (O/STDEV) Value
(STDEV)
DL -> DEI 0,720 0,714 0,057 12,673 0,000
Source: Primary Data (processed), 2023. DL: Digital Literacy; DEI: Digital Entrepreneurial Interest.

Discussion
The results of this research have confirmed the hypothesis proposed in this research
that digital literacy has a positive and significant effect on interest in digital
entrepreneurship among students at the Faculty of Economics, Business and
Humanities, Muhammadiyah University of Education, Sorong (Table 1). In other words,
the higher the level of digital literacy that students in the faculty have, the more their
interest in digital entrepreneurship will increase, and vice versa.
Based on the results of this research, it can be concluded that by providing digital
literacy courses, and supported by mandatory courses in each study program within the
Faculty of Economics, Business and Humanities, Muhammadiyah University of
Education, Sorong, interest in digital entrepreneurship will increase. students at the
faculty will increase, so that after graduating they are expected to become strong digital
entrepreneurs. The results of this research can also be used as material for further
evaluation and strategies for the faculty in order to increase their students' interest in
digital entrepreneurship. Mutiah (2022) also obtained the same research results as this

5
research on Tadris IPS students at the Syarif Hidayatullah State Islamic University,
Jakarta.
The definition of digital entrepreneurship is a contemporary entrepreneur who is
creative, efficient and effective in achieving business goals because it involves the use of
technology platforms and other information communication equipment (Giones and
Breem, 2017). Digital entrepreneurship consists of creating a business on the internet,
selling services or products online, without the need to invest in physical space
(Sartono, 2021). Some examples of digital businesses are online courses, e-commerce,
blogs, YouTube channels, and technology solutions in general (Sartono, 2021).
Research reports that use interest in digital entrepreneurship as a response
(dependent) variable to the influence of various independent variables are still
considered very rare, and the results of a literature search only found one study, namely
that conducted by Mutiah (2022). On the other hand, much research has been
conducted that uses interest in entrepreneurship (not specifically mentioning digital
entrepreneurship) as a response variable to the influence of various independent
variables. This shows that this research is new research, especially that carried out at
the Faculty of Economics, Business and Humanities, Muhammadiyah University of
Education, Sorong.
On the other hand, research related to efforts to foster interest in entrepreneurship
(not specifically mentioning digital entrepreneurship) in students at several universities
has been widely carried out. Several studies in question report that the level of digital
literacy has a positive effect on interest in entrepreneurship in final year students at the
Faculty of Economics and Business, Telkom University (Nanda and Sudiana, 2022);
towards entrepreneurial intentions among students at the Faculty of Economics and
Islamic Business, IAIN Surakarta (Anggraeni, 2017), towards entrepreneurial behavior
among students from the Faculty of Economics, Surabaya State University (Dewi and
Susanti, 2021), and towards entrepreneurial readiness in the digital era among students
from the Faculty of Economics, University of Padang State (Almi and Rahmi, 2020).
Another report states that digital online shops have a significant influence on interest in
entrepreneurship among students of the Sharia Economics Study Program, Faculty of
Islamic Economics and Business, Sulthan Thaha Saifuddein State Islamic University,
Jambi (Hadi, 2021). Research on students in West Jakarta found that digital literacy had
a positive and significant influence on entrepreneurial decisions, while social media and
e-commerce did not have a significant influence on entrepreneurial decisions for this
group of students (Fernando, 2021). A similar thing was found among students of the
Accounting Department, Ujung Pandang State Polytechnic, that social media had no
effect on interest in entrepreneurship (Dewi and Susanti, 2021).
In this research, the digital literacy variable was measured using eight indicators
(Mutiah, 2022) as mentioned above. Among these indicators, it turns out that X3
(understanding of how Hypertext, Hyperlink, Web, http browser, html and url) is the
dominant indicator in contributing to the digital literacy variable. This can be seen in
Figure 1 that this indicator has the highest coefficient of determination (R 2 = 0.889)
among the existing indicators. The X3 indicator consists of 4 items, namely X3.1. I know
the function of hypertext and hyperlinks (direction links); X3.2. I am able to search for
information via web browsers such as Mozilla, Opera, Chrome; X3.3. I am able to
understand web characteristics (http, html, url); and X3.4. I know the different types of
websites based on their function (forums, blogs, e-learning, etc.). The very good
understanding of students at the Faculty of Economics, Business and Humanities,
UNIMUDA Sorong regarding the X3 indicator is thought to be because students have

6
taken and studied digital literacy course material, and are also used to doing
coursework that involves the use of Hypertext, Hyperlink, Web, Browser. http, html, and
url.
The interest in digital entrepreneurship in this research was measured using four
indicators (Mutiah, 2022), and among these indicators, the Y3 indicator is the dominant
indicator in contributing to the digital entrepreneurship interest variable (Figure 1)
because this indicator has the highest coefficient of determination (R 2 = 0.920) among
existing indicators. This Y3 indicator has 6 items, namely Y3.1 (I know things related to
businesses that utilize digital transformation in business); Y3.2 (I want to implement
digital strategies when running a business); Y3.3 (I would be happy if I had an attractive
website to market the products or services I have in the future); Y3.4 (Using digital
media for business is profitable in terms of time efficiency, cost savings); Y3.5 (I like
being able to interact with partners and customers via web technology); and Y3.6 (I do
not want to have a business that utilizes information technology because I am not ready
to face the risks that exist). Item Y3.6 is an unfavorable statement. This situation shows
that the interest of students at the Faculty of Economics, Business and Humanities,
UNIMUDA Sorong is very high in entrepreneurship by utilizing digital technology.
Based on the findings of this research and the results of previous related research,
the researcher believes that in the current digital era it is necessary to focus on
exploratory research to find and inventory new variables that have a dominant
influence on interest in digital entrepreneurship among students. In this way,
universities can be more specific in directing students to prepare themselves to take
part in the world of digital entrepreneurship in the future after becoming graduates.

CONCLUSIONS
Digital literacy has a positive and significant effect on interest in digital
entrepreneurship among students at the Faculty of Economics, Business and
Humanities, Muhammadiyah University of Education, Sorong. This shows that the
higher the level of digital literacy possessed by Febira Unimuda Sorong students, the
greater the student's desire or interest in digital entrepreneurship, and vice versa. This
good campus performance needs to be maintained and even needs to be increased in
fostering interest in digital entrepreneurship for its students, because universities have
a strategic role in producing graduates who are ready to become new digital
entrepreneurs in the digital era, and are ready to become major contributors to the
country's economy.

ACKNOWLEDGMENTS

Thanks are expressed to the Directorate of Research, Technology and Community

Service (DRTPM), Director General of Higher Education, Research and Technology,
Ministry of Education, Culture, Research and Technology, R.I., who has funded this
research with the research contract: Master Contract Number: 190/ES/
PG.02.00.PL/2023, dated 19 June 2023, and Derivative Contract Numbers:
1036/LL14/PG.02.00.PL/2023, 019/I.3/LP3M/PG.02.00. PL/2023 , July 7, 2023.

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