Digital Entrepreneurship and Economic Transformation in Malawi: Implications for Youth Employment and Innovation

Abstract

Malawi’s business environment is undergoing rapid transformation due to the rise of digital entrepreneurship, including e-commerce, fintech, agri-tech, and online services. This study investigates the economic implications of digital entrepreneurship for youth employment and innovation, with a focus on identifying opportunities, challenges, and policy interventions. A mixed-methods approach was employed, combining quantitative surveys of 250 youth entrepreneurs with qualitative interviews of 20 key informants, including tech hub managers and policymakers. Findings reveal that digital entrepreneurship contributes to small-scale employment, revenue growth, and innovation adoption, with 82% of entrepreneurs utilizing mobile money for transactions and an average annual revenue growth of 28%. However, systemic challenges such as limited internet access, high connectivity costs, inadequate digital literacy, and restricted access to startup financing constrain the scalability of digital ventures. Qualitative insights underscore barriers related to infrastructure, policy gaps, and mentorship, while highlighting opportunities through tech hubs and digital skills programs. The study concludes that digital entrepreneurship has the potential to foster inclusive economic growth and youth employment in Malawi, but requires targeted policy support, investment in digital infrastructure, and enhanced access to financing. The research contributes to understanding the interplay between digital innovation and youth-driven economic development and offers actionable recommendations for policymakers and the private sector. Future studies should examine longitudinal impacts, gender dynamics, and rural-urban disparities in digital entrepreneurship outcomes.

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