The rapid growth of internet and social media users in East Java has created substantial opportunities for digital entrepreneurship among Generation Z university students. However, increased digital access has not been matched by a corresponding rise in students' entrepreneurial intention, creating a gap between access and action. This study examines the effects of social media, economic literacy, digital literacy, self-efficacy, and social environment on digital entrepreneurship intention, as well as the mediating role of digital literacy between social media and entrepreneurial intention. A quantitative approach was employed with 100 Generation Z students aged 18–24 in East Java, selected through purposive sampling. Data were collected via a five-point Likert scale questionnaire and analyzed using multiple regression and bootstrapped path analysis. The findings reveal that social media, digital literacy, and social environment significantly influence digital entrepreneurship intention, while economic literacy and self-efficacy do not. Digital literacy partially mediates the relationship between social media and entrepreneurial intention. These findings suggest that strengthening students' digital literacy can enhance the positive impact of social media on entrepreneurial intention. Higher education institutions should therefore integrate digital literacy training with social media utilization to foster digital entrepreneurship among Generation Z students.
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