ENThe ongoing digitalization had a global impact on economic patterns. With better broadband infrastructure, new businesses rely more on digital tools and technologies, are able to grow faster, and reach customers in remote markets. However, despite the growing importance of high-speed internet, there is a lack of research linking broadband provision to firm entries. This paper fills this gap by examining the relationship between the improvements in mobile internet speed and the firm entries in Lithuania over the 5-year time period from 2014 to 2019, the active phase of implementation of the Digital Agenda for Europe. As a result, we observed a negative and significant at 10% level relationship between changes in internet speed and business creation, which contradicts the recent findings in the existing literature. Keywords: broadband, firm entries, Lithuania, entrepreneurship.