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The formalisation – switch from the informal to the formal sector – of micro, small and medium enterprises (MSMEs) has serious ramifications on the Egyptian economy. This study investigates the effect of the factors perceived by Egyptian informal entrepreneurs to encourage/deter formalisation on those entrepreneurs' intentions of formalising their MSMEs. Social media (SM) usage is a novel factor whose impact on the intention of formalisation is also examined.

The conceptual framework of the theory of planned behaviour (TPB) is used, and a logistic regression model is utilised. Relevant data were collected from self-assessment questionnaires of a sample of Egyptian informal female and young male entrepreneurs, who constitute the majority of informal entrepreneurs in Egypt.

Results reveal that for female entrepreneurs, only the support of the government and other institutions positively affects their intention of formalisation, whilst direct costs and lack of family support affect their intention negatively. For young male entrepreneurs, the number of employees and prospects of contract enforcement positively affect their intention of formalisation, whilst being involved in a trading activity affects it negatively. For both groups, higher levels of education and SM usage adversely affect their intention of formalisation. These varying results have a crucial policy implication: the one-size-fits-all public policies intended to stimulate formalisation might not work, and thus, more tailored policies are required.

Worldwide, research on the impact of SM on the formalisation of MSMEs is scant, if existent. In Egypt, research on MSMEs is limited, those focusing on the impact of SM on Egyptian MSMEs are even scarcer and those targeting SM's effect on their formalisation are absent.

This study aims to examine the impact of social media (SM) on the creation of digital entrepreneurship by female (irrespective of age) and youth male (aged 18–29 years) entrepreneurs, investigate if SM empowers those entrepreneurs and compare the empowerment characteristics between female and youth male entrepreneurs before and after starting their businesses.

Self-assessment questionnaires were collected from a sample of 408 Egyptian female and youth male digital entrepreneurs from Greater Cairo, whose businesses had been operating for more than one year.

The research showed the following four results: Of the surveyed entrepreneurs, 95% asserted that without SM, they would not have started their businesses. Female and youth male entrepreneurs are empowered both on personal and relational levels, and women’s empowerment is more evident in the latter. Before digital entrepreneurship, youth males have significantly higher averages than female entrepreneurs in almost all empowerment characteristics, whereas after digital entrepreneurship, female entrepreneurs have significantly higher averages in making decisions related to investment, personal education and personal health, as well as those of other household members. Female entrepreneurs are relatively more empowered than youth males after digital entrepreneurship when each group is compared with its initial status.

This study’s originality stems from using a large sample of entrepreneurs, including youth males, not just females; employing a more structured, comprehensive measure of empowerment than found in the literature because it included the rarely used psychological dimension; considering more than one SM tool and comparing empowerment of females to that of youth males.