Digital Entrepreneurship and Poverty Alleviation among Generation Z: Evidence from Pekalongan Indonesia
DOI:
https://doi.org/10.5281/zenodo.20964770Keywords:
online business; poverty alleviation; Generation ZAbstract
Urban poverty remains a persistent challenge in Indonesia despite rapid digitalization and economic growth. This study examines how online business operated by Generation Z functions as an instrument of poverty alleviation in urban Indonesia, using Pekalongan as a case study. Employing a qualitative case study approach, data were collected through in-depth interviews, observation, and document analysis involving Generation Z online business actors and relevant stakeholders. The findings reveal that online business contributes to poverty alleviation at the micro and household levels by expanding income opportunities, strengthening economic self-reliance, and enhancing livelihood resilience through low entry barriers, flexible work arrangements, and broad digital market access. Beyond individual benefits, Generation Z–led online businesses generate multiplier effects by creating informal employment and reinforcing local economic networks. However, the sustainability of these contributions is constrained by structural challenges, including platform algorithms, taxation policies, limited access to capital, and insufficient institutional support. This study contributes to the literature by integrating digital entrepreneurship, Generation Z agency, and urban poverty studies, and by positioning online business as a capability-based poverty alleviation mechanism in medium-sized urban contexts in developing countries.
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