Abstract: Promoting digital governance is an important direction for China's government governance reform. The pilot policy of information benefiting people is a significant measure to empower government governance with big data and benefit the people as well as enterprises. Based on the pilot policy of information benefiting people implemented in 2014, this article uses registration data of Chinese industrial and commercial enterprises, and analyzes the impact of digital government construction on urban entrepreneurial energy using difference-in-difference model. Research has found that digital government construction, represented by the pilot project of information benefiting people, has a significant promoting effect on urban entrepreneurial energy. The research on mechanism indicates that the pilot project promotes entrepreneurship through reducing institutional transaction costs and uncertainty awareness. Further analysis shows that in regions with more abundant production factors and better institutional environments, the promotion effect of the pilot project is greater. In addition, the pilot project of information benefiting people can significantly improve the quality of urban entrepreneurship. This article studies the entrepreneurial promotion effect of government governance from the perspective of digital transformation, providing important theoretical and empirical insights for understanding the implementation path of improving government governance level and promoting high-quality development in the new era.
