Digitalization, Entrepreneurship Education, And Entrepreneurial Potential: A Human Capital Theory Perspective

Author's Information:

Amit Singh

Research Scholar, Institute of Management Studies, Banaras Hindu University, Varanasi-221005, India. Orchid ID: 0009-0004-6366-2340

Rajkiran Prabhakar

Assistant Professor, Institute of Management Studies, Banaras Hindu University, Varanasi-221005, India Orchid ID: 0000-0003-2083-091X

Vol 03 No 10 (2026):Volume 03 Issue 10 October

Page No.: 742-749

Abstract:

Digitalization is changing how entrepreneurship is learned, practiced, and supported, yet the relationship between digitalization, entrepreneurship education, and entrepreneurial potential remains conceptually fragmented. Existing research has examined digital entrepreneurship, entrepreneurship education, entrepreneurial intention, and digital transformation as related but often separate areas. This conceptual paper brings these strands together and explains how entrepreneurship education may function as a pathway through which digital resources are translated into entrepreneurial knowledge, skills, and capabilities. Drawing on Human Capital Theory, the paper distinguishes entrepreneurial potential from entrepreneurial intention and positions entrepreneurial potential as a broader state of entrepreneurial readiness that can be developed through learning and experience. A conceptual literature review was undertaken using peer-reviewed studies and established theoretical work on digitalization, entrepreneurship education, entrepreneurial potential, and human capital. The literature was synthesized around four relationships: digitalization and entrepreneurship education, entrepreneurship education and entrepreneurial potential, digitalization and entrepreneurial potential, and the role of entrepreneurship education as an intervening mechanism. The resulting framework proposes that digitalization can influence entrepreneurial potential both directly and through entrepreneurship education, while the strength of this relationship depends on the extent to which digital resources are converted into meaningful learning and capability development. Two propositions are developed to guide future empirical testing. The paper contributes by clarifying the conceptual boundaries between digitalization, entrepreneurship education, entrepreneurial potential, and entrepreneurial intention and by providing a Human Capital Theory-based framework for future research.

KeyWords:

Digitalization, entrepreneurship education, entrepreneurial potential, human capital theory, digital entrepreneurship, entrepreneurial capabilities.

References:

  1. Aparicio, S., Urbano, D., & Stenholm, P. (2021). Attracting the entrepreneurial potential: A multilevel institutional approach. Technological Forecasting and Social Change, 168, 120748. 
  2. Audretsch, D. B., Belitski, M., Caiazza, R., Chowdhury, F., & Menter, M. (2023). Entrepreneurial growth, value creation and new technologies. The Journal of Technology Transfer, 48(5), 1535-1551.
  3. Berger, E. S., Von Briel, F., Davidsson, P., & Kuckertz, A. (2021). Digital or not–The future of entrepreneurship and innovation: Introduction to the special issue. Journal of Business Research, 125, 436-442.
  4. Boldureanu, G., Ionescu, A. M., Bercu, A. M., Bedrule-Grigoruță, M. V., & Boldureanu, D. (2020). Entrepreneurship education through successful entrepreneurial models in higher education institutions. Sustainability, 12(3), 1267.
  5. Branca, E., Vanderstraeten, J., Slabbinck, H., & Maes, I. M. R. (2025). The impact of entrepreneurial education on key entrepreneurial competencies: A systematic review of learning strategies and tools. The International Journal of Management Education, 23(2), 101144.
  6. Chotisarn, N., & Phuthong, T. (2026). Reducing gaps in digital entrepreneurship education: A systematic review of innovative learning strategies and their institutional impact. The International Journal of Management Education, 24(1), 101283
  7. Dabbous, A., Barakat, K. A., & Kraus, S. (2023). The impact of digitalization on entrepreneurial activity and sustainable competitiveness: A panel data analysis. Technology in Society, 73, 102224.
  8. De Carolis, D. M., & Litzky, B. E. (2019). Unleashing the potential of university entrepreneurship education: A mandate for a broader perspective. New England journal of entrepreneurship, 22(1), 58-66.
  9. Deng, W., & Wang, J. (2023). The effect of entrepreneurship education on the entrepreneurial intention of different college students: Gender, household registration, school type, and poverty status. PloS one, 18(7), e0288825.
  10. Duong, C. D., & Vu, T. N. (2025). Entrepreneurial education and higher education studentse-entrepreneurial intention: a moderated mediation model of generative AI incorporation and e-entrepreneurial self-efficacy. Higher Education, Skills and Work-Based Learning, 15(5), 1024-1048.
  11. Duong, C. D., Ngo, T. V. N., Nguyen, T. P. T., Tran, N. M., & Pham, H. T. (2024). Digital entrepreneurial education and digital entrepreneurial intention: A moderated mediation model. Social Sciences & Humanities Open, 10, 101178. 
  12. Fossen, F. M., & Sorgner, A. (2021). Digitalization of work and entry into entrepreneurship. Journal of Business Research, 125, 548-563. 
  13. Fuller, B., Liu, Y., Bajaba, S., Marler, L. E., & Pratt, J. (2018). Examining how the personality, self-efficacy, and anticipatory cognitions of potential entrepreneurs shape their entrepreneurial intentions. Personality and Individual Differences, 125, 120-125.
  14. Galindo-Martín, M. Á., Castaño-Martínez, M. S., & Méndez-Picazo, M. T. (2023). Digitalization, entrepreneurship and competitiveness: an analysis from 19 European countries. Review of Managerial Science, 17(5), 1809-1826.
  15. Ivanović, D., Radenković, S. D., Hanić, H., Simović, V., & Kojić, M. (2025). A novel approach to measuring digital entrepreneurial competencies among university students. The International Journal of Management Education, 23(2), 101180.
  16. Krueger Jr, Norris F., and Deborah V. Brazeal. "Entrepreneurial potential and potential entrepreneurs." Entrepreneurship theory and practice 18, no. 3 (1994): 91-104. 
  17. Lamine, W., Fayolle, A., Jack, S., & Audretsch, D. (2023). Impact of digital technologies on entrepreneurship: Taking stock and looking forward. Technovation, 126, 102823.
  18. Liang, Y., Chen, R., Hong, H., Li, S., & Han, L. (2025). Shaping digital entrepreneurial intention in higher education: the role of entrepreneurship education, creativity, and digital literacy among Chinese university students. Journal of Innovation & Knowledge, 10(5), 100788.
  19. Liu, X., Lin, C., Zhao, G., & Zhao, D. (2019). Research on the effects of entrepreneurial education and entrepreneurial self-efficacy on college students’ entrepreneurial intention. Frontiers in psychology, 10, 869.
  20. Lv, Y., Chen, Y., Sha, Y., Wang, J., An, L., Chen, T., ... & Huang, L. (2021). How entrepreneurship education at universities influences entrepreneurial intention: Mediating effect based on entrepreneurial competence. Frontiers in psychology, 12, 655868. 
  21. Nguyen, P. N. D., & Nguyen, H. H. (2024). Unveiling the link between digital entrepreneurship education and intention among university students in an emerging economy. Technological forecasting and social change, 203, 123330.
  22. Prabhakar, R., & Singh, A. (2025). Entrepreneurial Potential and Higher Education Institutions: A Systematic Literature Review. SMS Journal of Entrepreneurship & Innovation, 12(1), 1-15.
  23. Raappana, A., & Pihkala, T. (2024). Three explanations for the development of adolescents’ entrepreneurial potential. International journal of educational research, 123, 102272. 
  24. Shah, I. A., Amjed, S., & Jaboob, S. (2020). The moderating role of entrepreneurship education in shaping entrepreneurial intentions. Journal of Economic Structures, 9(1), 19.
  25. Sitaridis, I., & Kitsios, F. (2024). Digital entrepreneurship and entrepreneurship education: a review of the literature. International Journal of Entrepreneurial Behavior & Research, 30(2-3), 277-304. 
  26. Sweetland, S. R. (1996). Human capital theory: Foundations of a field of inquiry. Review of educational research, 66(3), 341-359.