This article explores digital entrepreneurship and the impact of digitalization on the entrepreneurial environment in Beijing. The empirical data are composed of 20 semi-structured interviews with Beijing-based entrepreneurs. The article applies institutional theory to explore the state sponsored push for entrepreneurship, innovation and digitalization, and how the entrepreneurs are experiencing transformed environments. The findings highlight that entrepreneurs experience a heightened societal trust and increased support, yet a lack of institutional trust. Government initiatives and digitalization are found to have rejuvenated entrepreneurship in China, providing greater opportunities for economic action, but dominant institutions need to further develop to ensure the growth of a successful and sustainable entrepreneurial environment. This article contributes to digital entrepreneurship literature by offering unique empirical evidence regarding how institutional environments (e.g. local contexts, regulatory and social forces) can influence and impact the emergence of private enterprise in China.
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