<p>Governments embrace digital transformation as a result of the widespread use of digital technologies and their ability to enhance public services and national competitiveness. Entrepreneurship is one of the key drivers of national competitiveness. This study investigates the relationship between the development of e-government and entrepreneurship. We employed panel data analysis using a fixed effects and system generalized method of moments (system GMM) model to account for country-specific influences and assess the causal impact. Our analysis spans from 2005 to 2020 over 181 countries. We found that the outcome indicates a significant positive impact: a 1% improvement in e-government development, estimated to increase by an average of 0.415% in new firm registrations. The study also examines the regional and income-level-specific new business formation rates. The impact is most pronounced in developing economies, especially in low- and lower-middle-income countries. South Asia has a relatively better performance in using e-government to promote entrepreneurship, followed by the Middle East and North Africa, and then sub-Saharan Africa. The least impacted region is North America, which uses digital government to generate new business, compared to other regions. Furthermore, interestingly, although not statistically significant, e-government promotes entrepreneurial activities, compared to access to seaports; a positive relationship appears for landlocked countries. These findings show the significance of strategically building e-government to promote entrepreneurship. Simple-to-use online platforms can greatly minimize bureaucratic barriers and promote startup businesses. However, a one-size-fits-all solution may not be optimal. Governments should adjust e-government programs to meet specific demands like regional demands and problems.</p>