Introduction

China’s poverty alleviation efforts have garnered international attention for their remarkable success, particularly through policies targeting the “three rural issues” (agriculture, rural areas, and farmers) (Liu et al. 2018). In recent years, as modernization has accelerated, E-commerce has emerged as a critical engine for rural development by facilitating market access, reducing barriers, and fostering entrepreneurial opportunities. This paper examines how China’s unique model of E-commerce-driven poverty alleviation—characterized by a hybrid governance approach that integrates state-led interventions with market mechanisms—has empowered marginalized groups in rural areas.

Central to China’s approach is what some scholars have tentatively labeled “social neoliberalism” (Qian, 2023; Wang, 2024). While traditional neoliberalism champions market deregulation and privatization (Fiorentini, 2015), China’s model strategically couples state support—through infrastructure investments, digital literacy programs, and targeted public policies—with market-oriented platforms such as Taobao villages. This combination aims to reconcile efficiency with equity. For clarity, we cautiously believe that “social neoliberalism” here should be defined as a state-facilitated marketization process that prioritizes poverty reduction via cautious public-private synergies rather than a laissez-faire paradigm. E-commerce, in this context, acts as an empowerment tool on two levels. Structurally, it reduces entry barriers by providing access to digital tools, microcredit, and broader cross-regional markets (Huang et al. 2022; Zeng et al. 2019). At the agency level, it enhances individual autonomy through skill acquisition (e.g., online marketing training) and the creation of social capital via platform-enabled networks (Chatterjee et al. 2020). Nonetheless, the outcomes of such empowerment vary across China’s diverse rural regions, reflecting differences in infrastructure, cultural norms, and local governance (Liu et al. 2018). Recognizing these complexities, our study focuses on quantifying the net effect of E-commerce development on entrepreneurial likelihood among rural populations, rather than assuming uniform benefits. China’s experience offers valuable insights for developing countries and the Global South regarding the strategic leverage of government policy within a market economy. By investigating the potential of E-commerce to alleviate poverty, this study contributes new perspectives and practical lessons for global poverty alleviation policies.

The growing scholarly interest in E-commerce is underpinned by its perceived benefits. On the demand side, E-commerce facilitates expedited shopping, diverse product selections, quality assurances, and personalized after-sales services (Mofokeng, 2021). On the supply side, its utility has expanded beyond electronics and luxury goods into critical sectors such as agriculture (Qin et al. 2014). These initiatives have the potential to stimulate rural employment, promote entrepreneurial endeavors, mitigate financial constraints, and uplift farming communities. For example, numerous cases highlight how rural women have successfully leveraged E-commerce platforms to overcome social and economic marginalization (Zhang et al. 2024). Against this backdrop, we ask: Can E-commerce serve as a catalyst for broader poverty alleviation by empowering additional vulnerable rural groups to achieve socio-economic prosperity and an enhanced quality of life?

Rural poverty is characterized by multiple, intersecting disadvantages—including low educational attainment, poor health conditions, and social exclusion—that are particularly acute in these regions. This paper specifically examines whether China’s E-commerce policies can effectively increase the entrepreneurial rates among disadvantaged groups, such as women, ethnic minorities, the elderly, individuals with low educational attainment, and those with chronic illnesses.

The existing literature on marginalized entrepreneurship often extends the notion of “underdog” identities to include immigrant communities, persons with disabilities, older entrepreneurs, and other socially disadvantaged groups (Bakker and McMullen, 2023). For instance, married women—especially those of advanced age and with lower levels of education (secondary or below)—are overrepresented in underdog employment (Lo Bue et al. 2022). Similarly, adults with disabilities experience significantly higher levels of discrimination and unemployment, while older individuals frequently report the most acute perceptions of age-related bias (Keramat et al. 2021). Key obstacles for these groups include limited social capital (Burt, 2019; James et al. 2022; Richey et al. 2022), insufficient entrepreneurial resources (Dy, 2020), and restricted access to business information (Morris et al. 2022). Previous research has underscored that microcredit, entrepreneurial guidance (Assenova, 2020), and social media (Wang et al. 2024) can facilitate entrepreneurship among these populations. E-commerce uniquely integrates these functions by providing microcredit, disseminating information, and building robust social networks—thus opening new avenues for inclusive entrepreneurship research.

Building on Shirley Ardener’s theory of dislocated groups, which suggests that non-underdog cohorts inherently command greater opportunities in the labor market, this study focuses on those rural groups that face compounded disadvantages—rural women, individuals with severe illnesses, ethnic minorities, those with limited educational attainment, impoverished households, and the elderly (Su et al. 2023). Unlike previous studies that often consider singular disadvantage factors, we explore whether E-commerce can promote entrepreneurship among groups facing multiple, overlapping disadvantages. In many developing regions, rural residents may simultaneously contend with low literacy, health challenges, and economic hardships. Thus, a critical question emerges: Which specific identity groups with multiple disadvantages are best positioned to leverage E-commerce for entrepreneurial success?

Drawing on these inquiries, our study reviews the extant literature on entrepreneurship among marginalized cohorts and develops corresponding research hypotheses. Utilizing authoritative secondary data, we construct and rigorously validate an econometric model. Subsequent subgroup analyses reveal that E-commerce exerts its most pronounced entrepreneurial impact in contexts characterized by triple or quadruple layers of disadvantage. This research not only contributes to the academic discourse on E-commerce inclusivity and the underdog effect in entrepreneurship but also offers nuanced policy recommendations. In particular, our findings underscore the importance of targeted support for low-literate rural women—a strategy with far-reaching implications for poverty alleviation and regional economic growth in numerous developing nations.

The role of E-commerce and hypotheses development

This study provides an initial synthesis of scholarly investigations concerning the efficacy of E-commerce in fostering entrepreneurship within marginalized cohorts. Specifically, it delineates three focal areas: startup costs, startup barriers, and entrepreneurial capacity. Refer to Table 1 below for elaboration on these facets:

Table 1 Research on the Promotion of Entrepreneurship Among Underdog Groups by E-commerce.
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Reduce the cost of starting a business for underdog farmers

Entrepreneurial costs encompass not only production expenses requisite for operations but also the informational disparities stemming from information asymmetry. For vulnerable groups, particularly those engaged in entrepreneurial activities centered around the sale of agricultural products, the procurement of agricultural capital stands as the initial production outlay, entailing payment of a specific fixed cost upon market entry (Fanjul et al. 2023). Given the comparatively weaker capacities of vulnerable groups, particularly evident among women who must navigate familial responsibilities (Yang et al. 2022), and compounded by the logistical challenges faced by elderly farmers and individuals coping with illness, the initial entrepreneurial costs for vulnerable groups are further amplified.

Moreover, the acquisition of time and sales channels, necessitated by deficient business information, diminishes the profits of vulnerable farmers (Goldfarb and Tucker, 2019). Financial constraints prevalent among disadvantaged groups (Xheneti et al. 2019) precipitate a scenario where the practice of purchasing agricultural capital entails disproportionate temporal expenditures. Additionally, the reliance of disadvantaged groups on intermediary sales channels for agricultural product distribution relinquishes pricing autonomy to middlemen, thereby depressing sales unit prices for farmers within vulnerable groups.

Entrepreneurial costs, thereby, serve as a deterrent to the entrepreneurial aspirations of underdog farmers. Conversely, E-commerce platforms can serve as a catalyst for the involvement of underdog farmers in entrepreneurship by ameliorating both production costs and information gaps. Firstly, E-commerce platforms can curtail production expenditures by offering competitively priced production materials compared to traditional offline sources. Moreover, the convenience of online product selection obviates the temporal costs associated with offline procurement, effectively reducing production overheads (Chaparro-Pelaez et al. 2016). Secondly, E-commerce platforms facilitate direct online communication between farmers and consumers, bridging informational divides and eliminating the intermediaries’ exploitation of information asymmetry to realize arbitrage profits (Li et al. 2021).

Lower the threshold for underdog farmers to start a business

The technical aptitude and financial standing constitute fundamental requisites for successful entrepreneurship. However, vulnerable groups typically exhibit lower levels of education and skill proficiency, thereby encountering challenges in adapting to the operational complexities (Wignall et al. 2023). Insufficient technical proficiency hampers the attainment of higher income levels, exacerbating difficulties in accessing credit evaluations and financial support due to the absence of tangible assets and higher incomes (Boucher et al. 2008; Diaz-Serrano and Sackey, 2023). Consequently, the elevated technical and financial thresholds for entrepreneurship diminish the feasibility of entrepreneurial endeavors among vulnerable groups.

While the costs associated with entrepreneurship serve as deterrents to underdog farmers, E-commerce platforms offer a pathway to foster their participation in entrepreneurial activities by mitigating technical and financial barriers. Firstly, E-commerce platforms can reduce the technical threshold (Couture et al. 2021). Through E-commerce service stations, farmers benefit from streamlined processes for product grading, packaging, preliminary processing, and transportation, thereby circumventing technical barriers inherent in commodity packaging and design. Furthermore, digital recognition technology facilitates voice-to-text functions, easing typing-related challenges, while big data-driven classification and push technologies deliver learning materials and scientific knowledge, thereby bridging knowledge gaps. Additionally, advanced camera technologies enhance farmers’ photography and video capabilities, further lowering technical barriers to operation.

Secondly, E-commerce platforms can alleviate the financial threshold (Tang, 2019). By amassing transaction data, E-commerce platforms facilitate credit scoring utilizing digital technologies such as big data, cloud computing, and artificial intelligence, thus establishing a credit network system. Consequently, farmers can efficiently access commercial loans or credit facilities to address financial needs for production material procurement and expansion, thereby reducing the financial barriers to entrepreneurship. This mechanism streamlines online application and approval processes, effectively lowering the financial threshold posed by capital constraints. Consequently, the entrepreneurship threshold arising from farmers’ capital limitations is alleviated.

Enhance the entrepreneurial capacity of underdog farmers

Social relations among vulnerable groups often revolve around cooperative structures for the distribution of agricultural product sales (Y. A. Huang et al. 2021). This reliance on cooperatives can impede the establishment of demand chain connections and diminish farmers’ independent entrepreneurial capabilities. Furthermore, the social networks of disadvantaged groups tend to be limited, particularly in rural settings, where interactions primarily occur within close-knit communities (Nsele et al. 2023). Consequently, the sale of agricultural products is often mediated through cooperative channels, resulting in meager returns for farmers and a diminished capacity for autonomous entrepreneurship (Refai et al. 2024). These restrictions on external market engagement have eroded the self-entrepreneurial abilities of vulnerable groups and farmers, thereby curtailing entrepreneurial prospects.

Conversely, E-commerce platforms can facilitate the participation of underdog farmers in entrepreneurship by expanding sales channels, enhancing access to consumer and order information, and tapping into potential customer bases. Firstly, E-commerce platforms enable farmers to reach a broader consumer base beyond local rural areas, thereby enhancing sales potential (Yin and Choi, 2022). Secondly, these platforms provide access to consumer evaluations, bolstering trust and aiding consumer decision-making (Majumder et al. 2022). Thirdly, transaction records retained by E-commerce platforms inform farmers’ sales projections and enable informed decision-making by market participants, thereby optimizing production efficiency (Kawa and Swiatowiec-Szczepanska, 2021). Lastly, E-commerce platforms leverage features such as live broadcasts to establish emotional connections with consumers, fostering brand loyalty and facilitating repeat purchases (Kim et al. 2021). Moreover, targeted product sharing on social platforms and offline recommendations can activate latent consumer desires and broaden product reach, ultimately bolstering sales figures.

Based on the above analysis, this paper posits the following hypothesis:

H1: The development of E-commerce positively impacts entrepreneurship among underdog rural groups.

Sub-population of underdog groups and hypotheses development

E-commerce has been developed to effectively utilize the underdogous effects of underdog groups in a way that increases their adversity assets. Adversity assets are traits, abilities, mindsets and ways of acting that are beneficial to the entrepreneurship of underdog groups (Bort and Totterman, 2023). The underdog effect, from a behavioral point of view, refers to the fact that underdog groups are more willing to seize potential opportunities, embark on work that others are unwilling to do, pursue short-term opportunities, have a particular tendency to mimic small-scale entrepreneurship, are able to maximize the use of existing resources, are more attuned to the needs of their customers, have excellent qualities of self-discipline and perseverance, and are more likely to achieve self-satisfaction(Zhu et al. 2022). Rural underdog groups are able to utilize E-commerce platforms for entrepreneurship to break the status quo of adversity with the addition of adversity assets and underdog effects (see Tables 2 and 3 below).

Table 2 Research on different sub-populations entrepreneurship activities.
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Table 3 Comprehensive evaluation indicator system for rural E-commerce development.
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Rural women’s entrepreneurship

Adversity faced by rural women primarily stems from early marriage and familial obligations. In rural settings, women are expected to fulfill childcare duties, care for elderly parents, and manage household affairs, constraining their opportunities for external employment (Fizza, 2023). Feudal and traditional ideologies, particularly prevalent in less developed regions, reinforce societal expectations of women’s confinement to domestic roles, curtailing their access to educational opportunities and perpetuating mental subjugation, which undermines their innate independence, creativity, and resilience (Hu et al. 2024). Additionally, women venturing beyond rural confines encounter workplace discrimination, being stereotyped as “childbearing machines,” “heads of households,” and deemed less competent than men. Gender biases further dictate that women’s energies and time be prioritized for familial obligations over career pursuits, leading to their marginalization in professional spheres.

E-commerce platforms offer a pathway for harnessing women’s innate communication abilities and facilitating online learning, thereby transforming familial and social support into entrepreneurial drive among women (Chatterjee et al. 2020). By fostering genuine communication and leveraging online learning resources, women entrepreneurs can gain insights into customer needs and cultivate survival-oriented and small-scale entrepreneurial ventures. Women’s adeptness at genuine communication, coupled with their propensity for online learning, positions them as adept E-commerce entrepreneurs (McLean et al. 2018). Rural E-commerce development facilitates survival-oriented entrepreneurship among rural women, enabling them to balance familial responsibilities while contributing to household incomes. Such endeavors align with traditional familial expectations, garnering support and recognition from family and community members, which in turn serves as a catalyst for women’s entrepreneurial endeavors (Chatterjee et al. 2022). Based on the aforementioned analysis, this paper posits the following hypothesis:

H2: E-commerce development exerts a positive impact on entrepreneurship among rural women’s groups.

Entrepreneurship of rural minority groups

Adversity experienced by minority groups stems from their limited contact with the outside world. Characterized by their small populations and diverse ethnicities, ethnic minorities face heightened boundaries due to limited education and linguistic disparities. Residing predominantly within their own ethnic enclaves, minority groups have minimal communication and trade interactions with the broader society, exacerbated by restricted mobility, perpetuating regional underdevelopment and economic poverty (Vervoort et al. 2011). Moreover, the distinctive traits of ethnic minorities remain obscured to consumers nationwide due to environmental and lifestyle disparities, hindering opportunities for innovation and entrepreneurship (Andersen, 2017).

E-commerce platforms serve as conduits for bridging the information gap between ethnic minorities and the broader society, enabling the exploration and presentation of unique ethnic characteristics to a wider audience, thereby facilitating E-commerce entrepreneurship focused on ethnic specialties (Sturgeon, 2010). By dismantling barriers between ethnic tribes and the outside world, E-commerce platforms disseminate favorable information and knowledge to minority areas, while also showcasing minority lifestyles to a global audience through live broadcasting and online sharing (Ramasubramanian et al. 2017). Additionally, online shopping, logistics, and transportation channels facilitate the influx of high-quality, technologically advanced, and cost-effective resources into minority areas, attracting interest from consumers outside the minority communities and driving local economic development (Zhan and Ning, 2021). E-commerce platforms also serve as intermediaries for large-scale production, product promotion, and market planning, providing technical support and services to improve production efficiency and transaction success rates among ethnic minorities (Zhan and Ning, 2021).

The distinctive hair ornaments, attire, and lifestyle of ethnic minorities hold appeal for enthusiasts, particularly urban residents seeking novelty, thereby creating opportunities for ethnic minorities to engage in entrepreneurship. Based on the aforementioned analysis, this paper presents the following hypothesis:

H3: E-commerce development exerts a positive impact on entrepreneurship among rural ethnic minority groups.

Entrepreneurship among rural low-education groups

In developing countries, a prevalent issue is the increasing economic output and quality of education, which, however, fails to address the employment challenges faced by farmers due to the lack of education. In the labor market, highly educated individuals and returnees are prioritized, often securing full-time employment with higher salaries (Gerbery and Miklosovic, 2023). Conversely, the opportunity cost for farmers with lower education levels is the potential income foregone by relinquishing full-time entrepreneurship. Research categorizing education levels as no education, low education (secondary school and below), secondary education (bachelor’s degree), technical education (vocational, specialized), and higher education (master’s or doctoral degree) revealed significant disparities in entrepreneurial choices. Individuals with secondary education are 22% less likely to opt for full-time entrepreneurship, while those with higher education face a 50% decrease in such likelihood (Schulz et al. 2016). Moreover, educational opportunities in rural China have historically lagged behind urban areas, with rural residents experiencing substantially fewer years of education on average (Bernard and Keim-Klärner, 2023), exacerbating the employment challenges in a society marked by “involution.”

Low-educated farmers often rely on short-video content for knowledge acquisition and skill development, employing methods like “wordless learning” and “learning by doing” to identify and seize business opportunities (Bentley et al. 2019; Fossen and Neyse, 2023). Short videos on E-commerce platforms serve as a conduit for the general public to acquire life experiences and expand social insights, offering an alternative to formal education systems (Fry and Thieme, 2019). Unlike the structured learning in traditional education, knowledge sharing through short videos compensates for the educational shortcomings of farmers, fostering intuitive decision-making skills essential for entrepreneurial endeavors. Such tacit knowledge, acquired through “learning without words” and “learning by doing,” plays a pivotal role in intuitive decision-making, particularly in the nascent stages of entrepreneurship, driving startup initiatives with cost-effective and efficient solutions. Based on the aforementioned analysis, this paper proposes the following hypothesis:

H4: E-commerce development has a positive impact on entrepreneurship among rural low-education groups.

Entrepreneurship of rural poor groups

The rural poor grapple with a dearth of human, material, and social resources, facing formidable obstacles to entrepreneurship such as limited initial assets, stringent traditional credit conditions, and the low valuation of minimal capital requirements. Coupled with the inherent risks of subsistence living and production in volatile social and natural environments, the core factors contributing to the absolute poverty of farming households are low income and capital deficiency (Y. A. Huang et al. 2021; Xiao et al. 2022; Yamalakonda et al. 2023). Consequently, the scarcity of resources poses a significant impediment to poverty alleviation among rural farming households.

Case studies like the Taobao village poverty alleviation initiative and empathy entrepreneur training have garnered widespread attention, empowering impoverished individuals to leverage existing resources and seize potential entrepreneurial opportunities through perseverance and self-discipline. Leveraging platform-based empowerment, initiatives like “Taobao County” and “Taobao Village” have emerged as exemplars of rural poverty alleviation in China (Gao and Liu, 2020; Huang et al. 2023). Third-party E-commerce payment platforms have collaborated to establish payment channels, offering features such as “WeChat Payment Points,” “Ant Chanting,” and “Jingdong White Stripes,” which enable impoverished farmers to access products or services with the option of “using before paying.” By employing big data analysis and management, these platforms accurately assess individual customers’ demand and repayment capacity, providing financial support for farmers to embark on E-commerce ventures and surmount resource-related entrepreneurial barriers. Support programs for impoverished farmers foster the development of “empathetic private entrepreneurs” (Bort and Totterman, 2023), who are more inclined to engage in social welfare activities such as disaster relief, aiding vulnerable groups, organizing charitable donations, and providing social welfare services. Empowered by societal attention and support, impoverished individuals can maximize available resources, initiate entrepreneurial endeavors with perseverance and self-discipline, and ultimately break free from the shackles of poverty. Drawing on the above analysis, this paper posits the following hypothesis:

H5: E-commerce development has a positive impact on entrepreneurship among the rural poor.

Entrepreneurship among rural patients with severe diseases

Farmers grappling with severe illnesses confront a range of physical challenges that impede their productivity. Health issues such as cancer, disability, mental disorders, and chronic illnesses impose constraints on the workforce, reducing labor time, intensifying labor demands, and inducing physical exhaustion and discomfort (Forbat, 2023). Traditional job success necessitates traits like conscientiousness, diligence, and hard work, yet certain rural demographics—such as individuals with disabilities, cancer survivors, and those with severe chronic illnesses—tend to exhibit lower levels of savings, education, and specific business acumen (Jammaers and Zanoni, 2020). Moreover, the exigencies of medical activities—such as hospital visits, medication regimens, and rehabilitation sessions—often disrupt normal work routines for rural patients, further impeding their employability and dampening their entrepreneurial aspirations (Montgomery et al. 2023).

E-commerce platforms offer online workspaces and flexible working arrangements that can safeguard the dignity of farmers affected by illness, encouraging them to embark on small-scale home-based businesses and fostering their resilience and determination. Leveraging mobile handheld devices like smartphones and tablets, online offices obviate the need for rigid office environments and fixed working hours. The accessibility of mobile devices facilitates seamless communication between customers and merchants, while flexible schedules and remote communication methods mitigate potential stigma and bias stemming from physical impairments due to illness (Harpur and Blanck, 2020). In contrast to traditional employment, which may elicit shame over unavoidable work disruptions or delays, as well as resentment from colleagues, E-commerce entrepreneurship is more conducive to preserving the self-esteem of farmers with serious illnesses, with their perseverance and resilience better understood and tolerated by their social circles (Tang and Tsang, 2020). Family and friends also provide crucial support and assistance in various aspects of life and business (Torp et al. 2020). In light of the foregoing analysis, this paper proposes the following hypothesis:

H6: E-commerce development has a positive impact on entrepreneurship among rural individuals with serious illnesses.

Rural elderly group entrepreneurship

The challenge of reconciling declining physical vigor with demanding labor presents a significant obstacle for older farmers. While many adults now enjoy greater vitality than their counterparts in previous generations, the aging rural population is often characterized by conservative attitudes, risk aversion, a preference for immediate rewards, slow learning curves, and a limited capacity to adapt to new technologies and concepts (H. Zhao et al. 2021). Consequently, as they transition out of the workforce and into retirement, older individuals find themselves grappling with the pressure of being unable to perform their former jobs and meet the demands of the job market, even as they possess ample energy for activities (Qvist, 2023). Compounding these challenges, family members and acquaintances may harbor the belief that the elderly should retire peacefully, further complicating the situation (Wang and Hari, 2023). This dilemma underscores the tension between external pressures urging retirement and the internal desire to remain active and engaged.

However, older farmers possess valuable human capital, life experience, and resilient psychological qualities that can be harnessed through simple E-commerce platforms for self-employment, enabling them to find fulfillment and achievement in their later years. Elderly entrepreneurs benefit from accumulated resources such as savings, knowledge in production and operations, extensive social networks, and life wisdom, in addition to exhibiting qualities like composure and resilience (Weller et al. 2018). The user-friendly nature and seamless information flow of E-commerce entrepreneurship largely circumvent the physiological limitations of the elderly, including slower reaction times, diminished memory capacity, and reduced physical abilities, thereby overcoming technical barriers to entrepreneurship and facilitating their participation. Encouraging E-commerce initiatives in rural areas and empowering elderly farmers to embark on entrepreneurial ventures could offer a viable solution to revitalizing struggling rural economies. Many elderly individuals are eager to enrich their retirement years, alleviate the burden on their children, and achieve personal fulfillment, making participation in E-commerce entrepreneurship a means to satisfy their quality-of-life aspirations (T. Kim et al. 2023). In light of the above analysis, the following hypothesis is proposed:

H7: E-commerce development has a positive impact on entrepreneurship among rural older adults.

Research method

Sample

The explanatory and control variables pertaining to individual characteristics of farm households utilized in this study were sourced from the “China Rural Revitalization Comprehensive Survey (CRRS),” a nationwide rural tracking survey conducted by the Institute of Rural Development of the Chinese Academy of Social Sciences (CASS) in 2020. This survey covered ten provinces (autonomous regions), comprising 50 counties (cities), and 156 townships (towns) across the country, yielding over 15,000 questionnaires from farm households. Following the removal of samples containing significant missing data and outliers, a total of 15,284 sample records were retained for analysis. The primary explanatory variables and control variables capturing farmers’ regional characteristics were derived from provincial-level macro data, sourced from the China Rural Statistical Yearbook and the 2020 Report on the Development of Digital Agricultural and Rural E-commerce in Counties of China, published by the Information Center of the Ministry of Agriculture and Rural Development. These datasets provide comprehensive insights into various aspects of rural development and digital agriculture across different regions of China.

Variables

Explained variable (entrei)

The aim of this study is to investigate the propensity of farmers to engage in E-commerce entrepreneurship in response to the advancement of rural E-commerce. Utilizing responses from the questionnaire, participants were asked whether their families conduct product transactions through online platforms. Responses of “yes” were coded as “1”, while responses of “no” were coded as “0”. Overall, the analysis revealed that the percentage of farmers engaged in E-commerce entrepreneurship across the ten sampled provinces is 6.31%. This finding reflects the current state of the underdeveloped rural E-commerce market in China.

Key explanatory variable (EC p)

In this paper, the rural E-commerce development index is composed of four components: rural online sales, rural online purchases, rural logistics and transportation, and rural internet accessibility. Data for these four components were collected from ten provinces (autonomous regions). The entropy weight method was employed for weighted summation, and the resulting index was then scaled up by a factor of 100 to obtain the rural E-commerce development index for each of the ten provinces (autonomous regions). The specific steps involved in this process are outlined below:

Control variables

Individual farmers’ characteristics and regional characteristics will have an impact on farmers’ entrepreneurial decisions. From the perspective of individual characteristics of farmers, this paper selects “participation in cooperatives” (cooper), i.e., farmers participating in cooperatives are assigned a value of 1, while non-participation is assigned a value of 0. “Borrowing for production” (borrow), i.e., a farmer who has borrowed from relatives or friends for production is assigned a value of 1, and the absence of such experience is assigned a value of 0. “Purchase of commercial insurance” (bussi_insur), i.e., the farmer has purchased commercial insurance assigned a value of 1, and has not purchased it assigned a value of 0. “To_city experience” (To_city), i.e., the farmer is a returnee with experience of working in the city, is assigned a value of 1, and the absence of such experience is assigned a value of 0. “Net farm income” (lnprofit), i.e., the profit from the income of a farm household’s production operation, less its paid costs. From the perspective of the regional characteristics of farmers, this paper selects “government investment in rural E-commerce construction” (lngov_cost), i.e., the total value of the government’s investment in ICT technology, postal transportation, and the primary industry of a certain province (autonomous region) in 2019, and takes the logarithmic treatment. “Primary industry development level”(lngdp1), i.e., the total output value of primary industry in a province (autonomous region) in 2019 and logarithmic treatment.

Variables involved in heterogeneity analysis

This paper focuses on rural underdog groups. From a gender perspective(gender), women are affected by traditional prejudices, especially rural women, and are excluded from employment and entrepreneurship because of the traditional notion that “men are in charge of the outside world and women are in charge of the inside world”. From a national perspective(nation), China’s Han Chinese population is predominant, and the vast majority of urban minorities have been Sinicized, while the rural minorities who have inherited unique characteristics of the national culture should show their own characteristics in the market. From the point of view of education level (edu), China’s nine-year compulsory education policy has been implemented for many years, the number of university graduates year after year a new high, and nowadays the job market requirements for qualifications continue to be stringent, and the remote areas of the low education level of the population is limited by the threshold of the job market, entrepreneurship may become a new way. In terms of age(age), rural elders (age range between 46 and 65) are limited by their lack of energy and can no longer work at high intensity, and more rural elders choose to rely on their children’s alimony to make ends meet, thus becoming a burden to their children, so tapping into the labor capacity of rural elders to start E-commerce businesses with low-intensity work has the opportunity to achieve self-sufficiency. From the perspective of family poverty (poor), China’s poor counties, poor households are generally focused on the rural areas, poor families do not have employment opportunities, and do not have a source of income, so to promote entrepreneurship in poor families is an effective way to solve the poverty problem once and for all. From the point of view of physical health (illness), once farmers suffer from cardiovascular disease, malignant tumors and other serious chronic diseases or physical disability, not only will lose part of the ability to work, but also the cost of medicines will become a huge family burden, and then appear due to disease back to poverty, due to disease into the poverty of the phenomenon, to drive their E-commerce entrepreneurship to a certain degree can alleviate the economic pressure.

Descriptive statistics of variables

The descriptive statistics of the main research variables covered in this paper are shown in Table 4:

Table 4 Descriptive statistical characterization of variables.
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Statistical method

This paper explores whether the development of rural E-commerce will promote the implementation of E-commerce entrepreneurial behavior of different underdog groups of farmers by comparing the probability of rural E-commerce development affecting the entrepreneurship of underdog groups and non-underdog groups of entrepreneurs, and whether farmers participate in E-commerce entrepreneurship is a dichotomous choice problem, so this paper adopts the Probit model to examine the impact of the level of rural E-commerce development on entrepreneurship of underdog groups of farmers:

$${{\rm{entre}}}_{{\rm{i}}}={{\rm{\alpha }}}_{0}+{{\rm{\alpha }}}_{1}{{\rm{EC}}}_{{\rm{p}}}+{{\rm{\alpha }}}_{2}{{\rm{Controls}}}_{{\rm{i}}}+{{\rm{\varepsilon }}}_{{\rm{i}}}$$
(1)

Results

Overall sample analysis

Table 5 presents probit regressions for a sample of farm households meeting the criteria of being female, ethnic minority, having low educational attainment, aged between 46 and 65, categorized as poor households, and belonging to any underdog group suffering from a serious illness. The regressions are divided as follows: a. The first regression (1) is a probit regression without any control variables. b. The second regression (2) includes individual control variables. c. The third regression (3) incorporates individual control variables as well as regional control variables. All three regressions reveal, with a significance level of 1%, that the degree of rural E-commerce development positively impacts the involvement of underdog groups in E-commerce entrepreneurship. Additionally, factors such as cooperative membership, adopting production experience, purchasing commercial insurance, net income from production and business, and government expenditures on rural E-commerce construction exhibit positive effects on the participation of underdog groups in E-commerce entrepreneurship. Conversely, experience of urban employment and the primary industry of the region demonstrate negative effects, as do output values. This empirical evidence supports Hypothesis H1, indicating a positive relationship between rural E-commerce development and the engagement of underdog groups in E-commerce entrepreneurship.

Table 5 Probit model analysis of E-commerce entrepreneurship among rural underdog groups.
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Grouping analysis

Table 6 provides results from probit regressions examining the impact of rural E-commerce development on the participation of various underdog groups in E-commerce entrepreneurship. The findings are as follows:

  1. a.

    Column (1) indicates that rural E-commerce development significantly influences the participation of female farmers in E-commerce entrepreneurship at a 1% significance level. For every unit increase in the rural E-commerce development index, the probability of female farmers engaging in E-commerce entrepreneurship rises by 3.38%. This supports Hypothesis H2.

  2. b.

    Column (2) reveals that rural E-commerce development has a positive effect on the participation of ethnic minority farmers in E-commerce entrepreneurship at a 5% significance level. With each unit increase in the rural E-commerce development index, the likelihood of ethnic minority farmers participating in rural E-commerce entrepreneurship increases by 8.5%. Thus, Hypothesis H3 is supported.

  3. c.

    In Column (3), it is observed that rural E-commerce development significantly impacts the participation of farmers with a junior high school education level or below in E-commerce entrepreneurship at a 1% significance level. With each unit increase in the rural E-commerce development index, the probability of participation by farmers with a junior high school education level or below in rural E-commerce entrepreneurship increases by 2.89%. Hence, Hypothesis H4 is supported.

  4. d.

    Column (4) indicates that rural E-commerce development positively affects the participation of farm households included in poor household families at a 1% significance level. For every unit increase in the rural E-commerce development index, the probability of participation in rural E-commerce entrepreneurship by farm households in poor household families increases by 2.3%. Therefore, Hypothesis H5 is supported.

  5. e.

    In Column (5), it is shown that rural E-commerce development has a positive impact on the participation of farm households suffering from severe chronic diseases or disabilities in E-commerce entrepreneurship at a 1% significance level. With each unit increase in the rural E-commerce development index, the probability of participation in rural E-commerce entrepreneurship by such farm households increases by 2.79%. Hence, Hypothesis H6 is supported.

  6. f.

    Column (6) indicates that rural E-commerce development significantly influences the participation of elderly farmers in E-commerce entrepreneurship at a 1% significance level. For every unit increase in the rural E-commerce development index, the probability of participation of elderly farmers in rural E-commerce entrepreneurship rises by 3.44%. Therefore, Hypothesis H7 is supported.

Table 6 Analysis of the marginal effects of E-commerce affecting underdog groups.
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Overall, these findings provide strong support for the positive impact of rural E-commerce development on the participation of various underdog groups in E-commerce entrepreneurship.

Robust test

Replacing variables and models

The robustness tests conducted in this paper aim to ensure the reliability of the regression results by examining the impact of different specifications of core explanatory variables, explanatory variables, and empirical models. The results of these robustness tests, presented in Tables 6 and 7, demonstrate that the findings of the paper remain consistent across various specifications. In Table 8, the development level of digital villages in each province in 2019 is used as a replacement for the core explanatory variables in the empirical regression test. Despite this change, the direction of the regression coefficients and the significance levels remain consistent with those of the baseline regression, indicating robustness in the findings. Furthermore, in Table 7, the E-commerce income of the farmers in the sample is utilized as a replacement for the explanatory variables in the baseline regression test. Again, the regression coefficients’ directions and significance levels align closely with the baseline regression results, reaffirming the robustness of the findings. Lastly, in Table 8, the core explanatory variables are tested by replacing the probit model with the logistic model, and the explanatory variables are altered for the empirical regression test. Despite these changes, the direction of the regression coefficients and the significance levels remain largely consistent with the previous analyses, further confirming the robustness of the findings. Overall, the results of the robustness tests support the reliability and validity of the regression results, indicating that the conclusions drawn in the paper are robust across different specifications and empirical models.

Table 7 Robustness tests of replacement variables and models.
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Table 8 The impact of E-commerce on underdog groups with provincial fixed effects and clustering.
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Stricter subgroup testing

In the process of promoting rural entrepreneurship, certain government actions may play a positive role. Given that China’s poverty alleviation programs are implemented under the guidance of provincial-level departments, we enhance the reliability of our research conclusions by incorporating both provincial-level clustering and provincial fixed effects. This approach helps mitigate potential influences from additional variables.

Testing of explanatory variables

To better assess the validity of our explanatory variable indicators, we conducted a series of robustness tests (See Appendix A for detailed data), as detailed below:

  1. a.

    Grouping Based on Median Values:

    In the first step, we categorized four key indicators based on their median values. Indicators above the median were assigned a value of 1, while those below the median were assigned a value of 0. This classification allowed us to establish an experimental group and a control group. Given that our study encompasses 10 provinces, each group contained 5 provinces. The four sub-dimensions used for classification were as follows:

    x1: Share of rural e-tailing

    x2: Online purchases of rural consumer goods

    x3: Rural delivery transportation routes

    x4: Cell phones per 100 households

  2. b.

    Assigning Values to Underdog Groups:

    We then coded the underdog groups based on specific characteristics:

    ud = 1 if the household belongs to an underdog group, otherwise 0

    gender = 1 if the household head is female, otherwise 0

    nation = 1 if the household belongs to an ethnic minority, otherwise 0

    edu = 1 if the household has a low level of education, otherwise 0

    poor = 1 if the household is relatively resource-constrained, otherwise 0

    illness = 1 if the household suffers from a severe chronic illness, otherwise 0

    elder = 1 if the household head is elderly, otherwise 0

  3. c.

    Constructing Interaction Terms and Difference-in-Differences Model:

    We created interaction terms between the sub-dimension indicators and the underdog household variables to form a cross-sectional difference-in-differences model.

  4. d.

    Benchmark Regression with Provincial Fixed Effects and Clustering:

We conducted benchmark regressions controlling for provincial fixed effects and clustering at the provincial level. The results indicate the following (See Appendix A for detailed data and Appendix B for further data robustness explanation):

x1 (Share of rural e-tailing) significantly promotes E-commerce entrepreneurship among the overall underdog group, ethnic minorities, and low-educated farmers.

x2 (Online purchases of rural consumer goods) positively influence E-commerce entrepreneurship among ethnic minority and elderly farmers.

x3 (Rural delivery transportation routes) supports E-commerce entrepreneurship among the overall underdog group, female farmers, ethnic minorities, and elderly farmers.

x4 (Cell phones per 100 households) facilitates E-commerce entrepreneurship among farmers with severe chronic illnesses. However, for resource-constrained farmers, x4 appears to be more beneficial for non-resource-constrained farmers in promoting E-commerce entrepreneurship.

Analysis of mult-disadvantaged identities

The results presented in Table 9 highlight the impact of rural E-commerce development on the participation of farmers with multiple disadvantaged identities in E-commerce entrepreneurship. In columns (1), (2), and (3), it is evident that rural E-commerce development significantly facilitates the participation of farmers facing doubly underdog, triply underdog, and quadruply underdog states in E-commerce entrepreneurship. Specifically, the significance levels for these effects are 10%, 1%, and 1%, respectively. This indicates that as rural E-commerce development progresses, farmers with increasingly complex combinations of disadvantaged identities are more likely to engage in E-commerce entrepreneurship. However, in column (4), the analysis reveals that rural E-commerce development does not exert a significant effect on the participation in E-commerce entrepreneurship of farmers with more than four degrees of underdog. This suggests that beyond a certain threshold of disadvantage accumulation, the impact of rural E-commerce development on E-commerce entrepreneurship participation diminishes. These findings provide valuable insights into the role of rural E-commerce development in facilitating entrepreneurship among farmers with multiple disadvantaged identities, emphasizing the importance of addressing intersectional challenges to promote inclusive economic opportunities in rural areas.

Table 9 Analysis of E-commerce impact entrepreneurship under conditions of multiple disadvantages.
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The results presented in Table 10 shed light on the impact of rural E-commerce development on the participation of farmers with multiple disadvantage identities, particularly focusing on those facing triply underdog and quadruply underdog states, and exploring which combinations of disadvantage identities are the most significant.

Table 10 Analysis of E-commerce impacted entrepreneurship in underdog conditions.
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In column (1), the analysis reveals that rural E-commerce development significantly enhances the participation of older women farmers with minority status in E-commerce entrepreneurship at the 10% significance level. Specifically, for every unit increase in the rural E-commerce development index, the probability of participation in E-commerce entrepreneurship for this group increases by 19.46%. This indicates that rural E-commerce development plays a crucial role in promoting entrepreneurship among older women farmers with minority status. Column (2) shows that rural E-commerce development also has a significant positive impact on the participation of remaining farmers with triple underdog status in E-commerce entrepreneurship, with a significance level of 1%. For every unit increase in the rural E-commerce development index, the probability of participation in E-commerce entrepreneurship for this group increases by 2.87%. This suggests that rural E-commerce development effectively facilitates entrepreneurship among farmers facing multiple disadvantaged identities. Furthermore, in column (3), the analysis indicates that rural E-commerce development positively influences the participation of low-educated elderly women farmers with minority status in E-commerce entrepreneurship, albeit at a significance level of 10%. With every unit increase in the rural E-commerce development index, the probability of participation in E-commerce entrepreneurship for this group increases by 20.78%. Lastly, column (4) demonstrates that rural E-commerce development has a significant positive effect on the participation of the remaining farmers with quadruple underdog status in E-commerce entrepreneurship at a significance level of 1%. For every unit increase in the rural E-commerce development index, the probability of participation in E-commerce entrepreneurship for this group increases by 3.45%.

The Fisher’s Combined Test results indicate significant differences in coefficients between groups, further emphasizing the differential impact of rural E-commerce development on various combinations of disadvantaged identities. Specifically, rural E-commerce development appears to promote a higher probability of participation in E-commerce by low-educated older women farmers with minority status compared to the remaining farmers in the quadruple underdog status. These findings underscore the importance of understanding intersectional disadvantaged identities and tailoring interventions to address the specific challenges faced by different subgroups within rural communities.

Conclusions and outlooks

Conclusions

Our study empirically demonstrates that the development of rural E-commerce in China plays a pivotal role in empowering marginalized “underdog” groups and promoting their participation in entrepreneurial activities. Drawing on data from the 2020 Comprehensive Survey of China’s Rural Revitalization (CRRS) and complementary statistical sources on agricultural and rural development, our research findings are summarized as Table 11.

Table 11 Results and findings on the participation of rural underdog groups in E-commerce entrepreneurship.
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Contributions

Our study makes several significant contributions:

Theoretical advancement

By extending the application of the underdog effect theory to the domain of entrepreneurship, our work fills a gap in the literature that has previously focused on sectors such as sports, advertising, politics, academics, and charitable donations (e.g., Hyeon and Sun-Hee, 2020; Jun et al. 2015; Leontiou et al. 2023; Shin and Eun, 2021; Bradley et al. 2019). We provide a novel perspective on inclusive E-commerce by focusing on rural underdog groups, complementing existing studies conducted in regions like the Middle East (Al-Imam et al. 2017), BRICS (Haji, 2021), and other developing countries (Asongu and Nwachukwu, 2018).

Empirical evidence

The study leverages authoritative data to empirically verify that E-commerce development facilitates the entrepreneurial participation of marginalized rural populations. This adds a quantitative dimension to the existing qualitative discussions on inclusive digital economies.

Policy relevance

Our findings underscore the need for targeted policy measures to support E-commerce entrepreneurship among underrepresented groups. The results suggest that initiatives—such as financial backing, skills training, and digital infrastructure investments—can substantially mitigate social and economic disparities. Given the universal challenges of poverty and rural exclusion, these insights are relevant not only for China but also for policymakers in developing countries striving to leverage E-commerce as a tool for inclusive growth.

Practical implications

While our findings are rooted in the Chinese context, they offer valuable insights for other developing countries seeking to harness E-commerce as a tool for poverty reduction. Specifically:

Hybrid governance models

China’s state-facilitated, market-oriented approach—often described as “social neoliberalism”—illustrates how targeted public support (e.g., infrastructure investment and digital literacy programs) can effectively complement market mechanisms. Such models may be adapted in developing nations to reduce rural disparities and spur inclusive growth.

Empowerment of marginalized groups

By lowering entry barriers and fostering digital skills, E-commerce can serve as a powerful engine for empowering underdog populations, including women, ethnic minorities, and the elderly. Policymakers in other developing regions may consider similar initiatives to stimulate grassroots entrepreneurship.

Tailored policy interventions

The positive impact observed among various subgroups highlights the importance of policies that address intersecting disadvantages. For developing countries, crafting tailored interventions that combine financial support, skill training, and infrastructure development may accelerate the inclusion of marginalized groups in the digital economy.

Scalability and adaptability

As E-commerce platforms continue to evolve with technological advancements (e.g., big data, AI, and digital payment systems), the scalability of these solutions presents an opportunity for countries with limited resources to leapfrog traditional developmental challenges.

Limitations and future research

This study has several limitations that offer promising avenues for future research aimed at deepening our understanding of how E-commerce empowers vulnerable rural entrepreneurs and informs more effective policy frameworks.

a. Sample, generalizability, and external validity:

Our analysis is based on data from the “China Rural Revitalization Survey (CRRS)” and provincial-level macro data, which provide a robust dataset. However, the generalizability of our findings may be limited by the unique socio-economic, cultural, and regulatory environment of rural China. Caution should be exercised when applying these results to other countries or rural areas with different E-commerce infrastructures and government support systems. Future studies should consider additional contexts to enhance external validity and policy relevance.

b. Cross-sectional design:

The use of cross-sectional data in this study captures only a snapshot in time, limiting our ability to infer causality or fully understand the dynamic evolution of E-commerce and its long-term impact on entrepreneurial activities. Longitudinal research would be valuable to trace the progression of E-commerce effects and provide a more comprehensive picture of how entrepreneurial behavior evolves under its influence.

c. Intersectionality and multiple disadvantages:

Although this study examines E-commerce’s impact across various vulnerable demographics, it does not fully capture the complex interplay of intersecting identities—such as gender, race, age, and educational attainment—that can influence outcomes. Future research should explore these intersecting disadvantages more deeply to uncover nuanced insights and develop targeted E-commerce interventions tailored to the unique needs of diverse vulnerable groups.

d. Need for qualitative insights:

While our econometric analysis offers robust quantitative evidence of E-commerce’s influence on entrepreneurship, integrating qualitative methodologies could further enrich our understanding. In-depth interviews, case studies, and focus groups could provide valuable insights into the subjective experiences of vulnerable rural entrepreneurs, shedding light on their motivations, challenges, and strategies in leveraging E-commerce for business endeavors.