“Can entrepreneurship change my life?” The question was seriously and genuinely asked by someone in an online forum. What is the answer?
For some people who have tried and failed or lack confidence in their ability to succeed as entrepreneurs, the answer would probably be in the negative.
For others, there may be a positive understanding that entrepreneurship is about taking charge over their own lives, making their own business decisions, taking the necessary risks, providing a particular need, and ultimately, achieving financial independence.
Essentially, this article is an introduction to the concept of digital entrepreneurship, with particular emphasis on the advantages, opportunities, and of course, its life changing (wealth creation) potential.
What is Entrepreneurship?
As Jeffery A. Timmons states in the book, New Venture Creation, “Entrepreneurship is creating and building something of value from practically nothing. That is, entrepreneurship is the process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled.”
Timmons further explains:
• Entrepreneurship involves the definition, creation, and distribution of value and benefits to individuals, groups, organizations, and society
• Entrepreneurship is very rarely a get-rich-quick proposition, rather, it is one of building long-term value and durable cash streams
• Entrepreneurship requires a willingness to take calculated risks – both personal and financial – and then doing everything possible to influence the odds
• Entrepreneurship involves building a team of people with complementary skills and talents of sensing the opportunity where others see chaos, contradiction, and confusion; and of finding, marshalling, and controlling resources (often owned by others) to pursue the opportunity
Digital Entrepreneurship
Simply defined, digital or online entrepreneurship refers to any entrepreneurial activity that is facilitated through a digital channel. In other words, it involves the creation of digital businesses that depend on the utilization of digital technologies.
So, if you are involved in the digital transformation of an existing business or the creation of a new digital product or service to be enabled, sold, and delivered via the Internet, then you are involved in digital entrepreneurship.
“The infusion of digital technologies into entrepreneurship has resulted in what is known as digital entrepreneurship.” Source: Naudé, Wim; Liebregts, Werner (2020): Digital Entrepreneurship Research: A Concise Introduction, IZA Discussion Papers, No. 13667, Institute of Labor Economics (IZA), Bonn.
Wide Range of Roles
Digital entrepreneurship includes a wide range of individuals who sell products to customers through various online marketplaces. While some individuals may see their role as a hobby by creating and selling one or two products now and then on platforms such as Etsy, Ebay, and so on, the more consistent players include marketers using blogs, YouTube channels, or certain social media platforms to promote and sell products.
Opportunities and Advantages of Digital Entrepreneurship
Digital entrepreneurship provides a vast range of opportunities for anyone with the knowledge, skills, and willingness to learn. For many, entrepreneurship has provided the opportunity to move out of debt, unemployment, and despondency through the creation of new markets, easily created digital products, and by taking advantage of the reduced costs of operating online compared to a physical location, such as a restaurant, brick and mortar store, etc.
• Lower Costs
The significantly lower costs of starting an online business allow those with lower levels of savings and capital the opportunity to become digital entrepreneurs on the same footing as others. Offline, starting a business is out of reach for many, given factors such as the higher costs of capital, infrastructure, location, rent, transportation, and other potential barriers.
• Ease of Entry
Compared to a traditional offline business, in just a matter of minutes or hours, one can build a blog or YouTube channel and start the process of becoming a digital entrepreneur. With lower or no costs, there is relative ease of entry when establishing an online business. In fact, almost anyone can start an online business and be on the way to changing his or her life.
“Digital entrepreneurship can lower the barriers for startups and create opportunities to work from remote areas, at different hours, from the home, or on the go.” (Source: https://thedocs.worldbank.org/en/doc/354261452529895321-0050022016/original/WDR16BPEnablingdigialentrepreneursDWELSUM.pdf)
• Work Anywhere, Anytime
Digital technologies allow you to work remotely from anywhere at any time and, if necessary, hire the talents needed from all over the world. So long as you have a device connected to the Internet, you can stay at home, keep in touch with clients, make sales, send, and receive money. With your virtual business there is no need to worry about the costs of accommodating employees in a dedicated physical space, and so on.
Additionally, the digital entrepreneur can avoid the challenges of daily commuting, or the frustrations of traditional nine-to-five employment.
• Storage & Distribution
With digital products there is no significant requirement for physical space and storage. Other than a computer (laptop, desktop, smart phone, etc.) no significant investment in equipment may be necessary. However, if using YouTube (or other video based platforms) you could purchase a dedicated camera, microphone, and so on, if so desired.
In the digital world, products can be delivered immediately unlike the case of traditional manufacturers who may have to deal with matters such as storage, ground transportation and shipping (cargo) costs, before the product reaches the actual customer.
• Customers
While the situation may not be the same for everyone, digital technologies can expose new and established entrepreneurs to a large number of customers in a relatively short period of time, compared to traditional entrepreneurs. With instant feedback, the digital entrepreneur can quickly discover if a customer is not satisfied with a product purchased, and then take any necessary action.
• Analyzing Competition
Digital technologies enable the online entrepreneur to quickly analyze the competition, understand consumer behavior, and to efficiently deal with various market challenges, while growing the business. Many tools are available online to do the analysis; and there are quite a good number of free ones too.
Can Digital Entrepreneurship Change Your Life?
Entrepreneurship – digital or otherwise – has changed the lives of millions of people across the world. If you have the drive and the necessary commitment, then entrepreneurship can change your life too.
On the other hand, there are those who simply prefer the steady pay check, the job security, and the benefits of being directly employed. As such, these individuals may never take the entrepreneurial route. Nothing is wrong with that. There will always be those who prefer working for others, rather than taking the risk of starting their own businesses.
For those who choose the entrepreneurial route there will be challenges, but even more so are the opportunities, the self-satisfaction, and the rewards to be gained. While some may fail along the way, there are many examples of individuals whose lives have been changed by entrepreneurship, through the creation of new sources of income – in some cases moving from zero income to making five, six, seven figures, and even more.
Conclusion
Entrepreneurship can change your life by elevating you from destitution to prosperity; from unemployment to being gainfully self-employed; from obscurity to being prominent, in-demand individuals. With little or no capital you can build a successful online business, make good money, pay off your debts, eat better, live better, take better care of the family, and generally, achieve a higher standard of living.
Across the Internet, there are countless examples of successful digital entrepreneurs such as bloggers, YouTubers, affiliate marketers, writers, freelancers, influencers, digital content creators, and the list goes on. As many of these individuals have demonstrated, digital entrepreneurship can, indeed, change your life.