The internet has clearly transformed the way we live, work, and do business. Where once brick-and-mortar stores dominated, many innovators are now building companies that exist solely online.
As new businesses enter the digital environment in ways that traditional companies never could, outdated barriers are disappearing, opening up a whole new world of possibilities for ambitious entrepreneurs.
What is Digital Entrepreneurship?
Digital entrepreneurship is about starting and running a business that is run entirely online. It represents a new model of entrepreneurship adapted to the digital age in which we live.
Some well-known examples of digital entrepreneurs include e-commerce platform Shopify, software-as-a-service (SaaS) company Slack, online house-sharing marketplace Airbnb, and AI innovator OpenAI – all of which leverage technology to deliver digital experiences to customers around the world, 24/7.
Though these companies are big now, they all started out small. So you don’t have to be a billionaire diamond heiress to jump into digital entrepreneurship. Sara Blakely built Spanx into a multi-billion dollar shapewear empire by selling first online and then expanding into retail. Ben Silverman co-founded Pinterest and led the visual search platform to more than 400 million users worldwide. Michelle Phan used YouTube to launch a beauty and makeup line that was acquired by L’Oreal.
They all built their companies from the ground up by leveraging the global reach of the Internet, which allowed them to create and rapidly expand their online businesses.
What does a digital entrepreneur do?
Digital entrepreneurs are taking advantage of always-on technology to create new internet-enabled business models. But who will build these business models?
A digital entrepreneur, of course.
Location-independent and globally active, digital entrepreneurs rely on laptops, smartphones and the internet rather than brick-and-mortar stores.
But as we move towards 100% digital, what will a day-to-day life look like for the next generation of digital entrepreneurs?
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They build digital products such as customized courses and platforms that are available online.
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They use the internet to market globally and sell products and services, such as e-books, and distribute them digitally.
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They manage their work through automated, web-based tools rather than face-to-face processes.
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We analyze metrics and data to optimize things like website traffic and business performance.
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They stay up to date with emerging technologies and hone their latest technical skills.
In other words, digital entrepreneurs are focused on leveraging technology to build, manage, and grow innovative online businesses that fully embrace the digital environment. No more dedicated brick-and-mortar stores or warehouses for inventory. Even businesses with physical products can manage their operations entirely online, as they’re all ones and zeros.
What are the characteristics of a digital entrepreneur?
Starting a digital business requires a unique mindset and some handy skills. Here are some traits of a successful digital entrepreneur.
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Technical Know-How — You don’t need to be a programmer, but having a working knowledge of digital platforms, tools and emerging technologies will be a big help.
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Adaptability — Technology is evolving rapidly and digital entrepreneurs need to evolve with it and keep up with the constant changes and innovations in the digital world.
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Global Vision — The internet allows startups to reach customers all over the world, so digital founders need to think globally from day one.
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Marketing Knowledge — For digital entrepreneurs who don’t have a physical presence, marketing through social, SEO, email, etc. is crucial.
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problem solving — When technology breaks down or strategies stall, digital entrepreneurs often have to pivot quickly to keep their business running.
These are the traits that make the difference. More importantly, digital entrepreneurs have the creativity to find fresh ideas, the tenacity to overcome obstacles, and a global vision that appeals to a global audience.
The difference between digital entrepreneurship
Starting an online business has some key differences from a brick-and-mortar startup: Here are some ways that digital entrepreneurship is different.
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Lowering the barriers to entry — Digital businesses often require less initial capital because businesses offering digital products don’t need a physical store or inventory, making them easier to launch.
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Lean operations — Not having to manage in-person logistics allows digital businesses to stay lean and agile. Automation can streamline many processes.
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Remote Work — Digital tools allow entrepreneurs to manage their operations and collaborate with team members remotely, giving them greater flexibility.
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Access 24/7 — Websites and apps allow customers to reach your digital business anywhere in the world at any time. There are no opening hours.
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Scalability — Online platforms make it easier to reach a wider audience and scale quickly by automating workflows.
The opportunities presented by digital entrepreneurship have fueled an explosion of new business ideas, from mobile apps to AI to quantum computing. To succeed in this environment, digital entrepreneurs need to: A business that is one step ahead of the latest technology and can adapt to any situation.
But there’s still a place on Main Street
Traditional businesses with brick-and-mortar stores can also become digital entrepreneurs: consider the popular Starbucks mobile app, where you order a drink on your smartphone and it’s waiting for you when you arrive at the store.
Starbucks is just one example, Apple’s retail stores are blending in-store experiences with their online ecosystem with Today at Apple sessions, and Eataly is using digital tools to scale its brick-and-mortar cooking classes around the world.
In fact, these traditional businesses have their own unique advantages that are still very important today.
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Local Connection — Brick and mortar stores build loyal communities and network locally in tangible ways that can’t always be replicated digitally.
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Human contact — Face-to-face customer service and interaction creates relationships and experiences that can’t be achieved solely online.
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Specialized Space — Custom brick-and-mortar stores and restaurants provide an experience that goes beyond simply buying products and food.
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Real-world skillsets — Commercial property management and store operations require a different skill set than digital operations.
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Hybrid possibilities — Many traditional businesses are now successfully adopting digital tools for marketing and sales while still maintaining a physical space.
The growth of digital entrepreneurship doesn’t make traditional businesses obsolete: as Starbucks, Apple, and Eataly show, it often enables brick-and-mortar businesses to expand beyond their physical limits.
Thinking about digital entrepreneurship?
By now, you might be thinking: “Digital entrepreneurship is great! But how do I get started?”
For aspiring entrepreneurs, there are so many possibilities for building an online business that it can seem daunting to choose the best one. The key is to zero in on a proven business model that matches your skills and interests, exploring established options such as:
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Become a content creator If you love creating content and connecting with your audience, Instagram and TikTok are the places to go.
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Building a SaaS company Passionate about technology and solving real-world problems through software
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Launching an e-commerce store If you enjoy creating unique products and curating online shopping experiences
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Provide Web Development Services You have good coding skills and know how to build a website
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Establishing a Digital Marketing Agency People who are adept at data-based advertising and promotion
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Educational Online Course Creation If you have deep knowledge to share on a topic
Identifying the digital business model that works for you can help you turn your ideas and capabilities into your own digital business. All you need to get started is to validate your idea and build a digital business that people want in the real world.
Are you ready to go digital?
The rise of digital entrepreneurship opens up a range of exciting possibilities for today’s innovators. With the barriers to launching an online venture lower than ever before, entrepreneurs are leveraging emerging technologies and digital tools to build, manage and scale their businesses to any audience, anywhere in the world.
Whether you are looking for a traditional or digital business, the key is to find one that matches your skills and interests. The appeal of digital business is that With a strong business description and a focused game plan, anyone can turn a dream into a thriving digital business.
Want to discuss ways to strengthen your business idea or grow your company? Contact a Chase business banker today and we’re here to help.
