South Asian Journal of Social Studies and Economics

This study examines the factors influencing Generation Z's intention to pursue digital entrepreneurship in Sri Lanka. The review emphasizes how digital literacy and the Technology Acceptance Model (TAM), which focuses on how individuals regard technology's ease of use and utility, affect the desire to engage in digital entrepreneurship. Adopting a positivist paradigm and deductive approach, the study employed a quantitative, cross-sectional survey design. Data were collected through a structured questionnaire using a five-point Likert scale from 388 Generation Z respondents selected through convenience sampling. The results reveal that perceived usefulness, perceived ease of use, and digital literacy have significant positive effects on digital entrepreneurship intention. The regression model explains 42.4% of the variance in digital entrepreneurship intention (R² = 0.424; R = 0.651), indicating moderate explanatory power. Among the predictors, perceived usefulness and digital literacy demonstrate comparatively stronger relationships with entrepreneurial intention. The findings confirm the applicability of TAM by integrating digital literacy as a key determinant in explaining digital entrepreneurial behavior within a developing country context. The findings of the study are helpful in entrepreneurship development, digital inclusion, and youth empowerment. Practically, the findings highlight the importance of strengthening digital literacy programs, improving user-friendly technological infrastructure, and enhancing awareness of the practical benefits of digital technologies to foster entrepreneurial engagement among Generation Z.