Digital Marketing Adoption Among Entrepreneurs: A Cross-Country Analysis of GEM Survey Cycles 2020/2021, 2022/2023, and 2023/2024

Abstract

Digitalization has transformed how entrepreneurs acquire and retain customers; however, cross-country evidence on digital marketing adoption remains limited, particularly in multi-year comparative analyses across diverse economies. This study addresses this gap by analyzing Global Entrepreneurship Monitor (GEM) Adult Population Survey data from the 2020/2021, 2022/2023, and 2023/2024 survey cycles, providing insights into entrepreneurial digital marketing adoption patterns and the importance of tools across income groups. Using aggregated country-level indicators for Total Early-stage Entrepreneurial Activity (TEA) and Established Business Ownership (EBO), we compare digital sales expectations and the perceived importance of four digital marketing tools—social media, email communication, email marketing, and company websites—across GEM income groups (Group C = lower-income, Group B = upper-middle, Group A = high income). Findings indicate that, over time, a growing share of TEA respondents across many economies anticipate increased use of digital sales technologies, with early-stage entrepreneurs generally exhibiting stronger intentions to expand digitally than established business owners. Social media has emerged as the dominant digital marketing tool globally, with a large proportion of economies reporting it as highly important. At the same time, company websites and email communication occupy an intermediate position, and structured email marketing remains the least frequently prioritized. This pattern underscores a “second-order digital divide,” in which entrepreneurs widely adopt basic digital tools but lag in adopting more sophisticated, capability-intensive practices. Policy implications include prioritizing targeted digital capability building beyond basic social media use, promoting more integrated multi-channel strategies, and supporting export-oriented digital initiatives to bridge gaps in digital marketing sophistication and scale. The study contributes to understanding how the adoption of digital marketing evolves across entrepreneurial stages and economies, informing targeted policy interventions to enhance global competitiveness.