Have you ever heard of digital entrepreneurship? It’s a form of economic activity based on the conscious use of information and communication technologies (ICT) to do business.
Basically, it’s an innovative, scalable and replicable way of doing business that exploits the potential of the Internet and the web to offer products or services to an increasingly competitive global market.
In other words, it refers to the use of new technologies to create and run businesses, challenging existing conventions.
In the article, you will find out what digital entrepreneurship is, why it is important, how it works, what opportunities it offers and how to become a digital entrepreneur.
Table of contents
What is digital entrepreneurship
According to the most recent definitions, entrepreneurship is that form of complex economic activity, organised in the form of a business and directed to the production and commercialisation of products and services.
The entrepreneur, instead, is the one who organises and manages the human, material and financial resources needed to start and develop his or her business.
Digital entrepreneurship, therefore, differs from traditional entrepreneurship in that the business is entirely or predominantly online, i.e. based on the use of the Internet and ICT. The digital entrepreneur, in fact, is the one who creates and manages an online business, using the opportunities offered by the web, such as digital marketing or AI, to achieve his or her goals.
What opportunities are we talking about?
The opportunities offered by digital entrepreneurship are many, among them we list:
- the possibility of operating in a global market, without geographical or time limits;
- the reduction of fixed and variable costs, thanks to the digitisation of processes and the dematerialisation of products;
- the scalability of the business, i.e. the ability to grow exponentially without proportionally increasing the resources employed;
- the replicability of the business model, i.e. the possibility of applying it to different sectors or markets with few changes;
- the continuous innovation, through the ability to experiment with new solutions and receive rapid feedback from customers.
Why digital entrepreneurship is important and what challenges it brings
It’s important because, in a world where more and more companies are adopting digital strategies, there is a risk of falling behind. In other words, it’s no longer an option, but a necessity, a road that must be travelled.
Of course, digital entrepreneurship also presents certain challenges, such as:
- the rapid evolution of technology;
- the protection of personal data, the violation of which constitutes a criminal act;
- barriers to entry, which have led to increased competition;
- the difficulty of establishing interpersonal relationships with customers;
- the availability of resources, which, especially at an early stage, can slow down the growth of one's business;
- regulations, i.e. the laws and regulations that govern trade from country to country.
With a good strategy and proper preparation, however, these challenges can prove to be an opportunity to be seized to innovate, create value and earn a place in the global market hall of fame.
How to become a digital entrepreneur in 5 steps
To start and run a digital business, you need to follow 5 simple steps, such as those described here.
1. Defining the business model
Define your business model, i.e. how you create value for customers and generate profit. There are various digital business models, such as e-commerce, marketplace, platform, software as a service (SaaS), freemium, subscription, etc.
2. Choosing the target market
Choose your target market, i.e. the customer segment you want to address. It is important that you identify their characteristics, needs and preferences in order to offer potential buyers a value proposition that is appropriate and differentiated from the competition.
3. Creating a digital product or service
Create your digital product or service, i.e. what you intend to sell and promote online. You define the functionalities, benefits, costs and quality of the product/service, as well as how you want to deliver it to the customer (e.g. through a website, mobile application, software, etc.).
4. Developing the distribution channel
Develop a distribution channel, i.e. the means by which you get your product or service to the customer. You should choose the most effective and efficient ways to promote your offer online (e.g. via search engines, social media, e-mail marketing, influencers, etc.).
5. Managing the cash flow
Manage your cash flow, i.e. the difference between the income and expenditure generated by your business; this will allow you to improve the economic performance of your business by optimising revenue sources and reducing operating costs.
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Digital entrepreneurship makes it possible to start and run a business flexibly, without geographical constraints and with low costs. The skills required range from marketing to web design, from copywriting to social media management.
Remember: digital breaks down barriers to entry in many sectors and allows even those starting from zero to build their business and get success.
If you want to make the most of the Internet’s potential and achieve financial independence, contact us by calling +390957463250 or filling in the contact form below.
A team of consultants will help you start your digital business.