What is Digital Entrepreneurship? And How To Start a Digital Business

What is digital entrepreneurship? 

Digital entrepreneurship involves leveraging the internet and digital technologies to create and run a business. 

Unlike traditional entrepreneurs who are limited by geography and resources, digital entrepreneurs can reach a global audience and utilize cost-effective marketing strategies. 

Tools like website builders make it easier and more affordable to launch and grow a digital business, making it an ideal path for those with limited resources.

Is digital entrepreneurship on the rise?

As the internet continues to grow and become an increasingly major part of our lives, new opportunities for digital entrepreneurship arise.

Digital entrepreneurship is constantly growing in popularity because it's such a great way for people to start a business. Online businesses give entrepreneurs the potential to reach a digital marketplace they couldn't do without the internet—and there are even business opportunities that are unique to the online world.

There are also helpful tools for digital entrepreneurs, including data tracking and digital advertising. The more people find ways to make money online—whether that means streaming video games or starting a store—the more digital entrepreneurship will continue to grow.

Advantages of digital entrepreneurship

Digital entrepreneurship offers numerous advantages, making it an appealing choice for many aspiring business owners. One of the key benefits is access to a global customer base. The internet allows you to reach a worldwide audience, surpassing local constraints.

Additionally, digital tools and platforms, such as ecommerce websites and social media, provide smaller businesses the capability to compete with larger companies. These tools level the playing field, enabling effective marketing and sales without the need for a substantial budget.

Digital technologies have created countless new avenues for entrepreneurs and small businesses. Whether you're an inventor, a writer, or an artist, you can use the internet to reach a massive audience and get your next big idea off the ground.

You can even use tools like ecommerce marketing and social media advertising to help increase exposure and reach more people. This is known as digital entrepreneurship.

Digital entrepreneurship is one of the biggest types of entrepreneurship in today's world. Just about every business has a website, and lots of people manage a website even if they don't have a digital business.

Successful examples of digital entrepreneurship

Digital entrepreneurship is about starting and running a business that operates fully online. Notable examples include:

• Shopify: An e-commerce platform that empowers businesses to create their own online stores.
• Slack: A software-as-a-service (SaaS) company that revolutionized workplace communication.
• Airbnb: An online marketplace for house-sharing and rentals, connecting hosts with travelers worldwide.
• OpenAI: A trailblazer in artificial intelligence, providing cutting-edge AI solutions.

These companies started small but have grown significantly by leveraging digital technologies to deliver their services globally.

You can start up a blog to talk about one of your hobbies, a website where you can share your fishing videos or even a portfolio of your work. When it comes to starting a digital business, the possibilities are endless.

Before you start an online business, there are some things you need to know about digital entrepreneurship and how to be a digital entrepreneur. Succeeding in the digital business world isn't as simple as building a website; you need to have a digital business strategy and understand how to navigate the internet and use its power to your full advantage.

We'll help you learn about what you need to do to start a digital business and become a digital entrepreneur. Keep reading to find out more about digital entrepreneurship.

Types of digital entrepreneurship

Digital entrepreneurs have more flexibility than traditional and digital entrepreneurs of the past when it comes to choosing their path. Starting your own online business doesn't lock you into one specific model anymore.

You can often combine different approaches or pivot between business models as you grow. Whether you're looking to launch a digital venture from scratch or expand an existing idea, here are the most popular types of digital entrepreneurship to consider.

Content creators and influencers

Content creators build their businesses around producing engaging material that attracts and retains audiences. This path involves creating videos, podcasts, blog posts, social media content, or other digital media that people want to consume.

Many successful content creators start by sharing their expertise or passion in a specific niche and then monetize through sponsorships, product sales, or subscription services. The key is consistency and building genuine relationships with your audience over time.

E-commerce store owners

E-commerce entrepreneurs sell physical or digital products directly to consumers through online stores. This business model has exploded in popularity because it's relatively easy to set up a store using platforms like Mailchimp.

You can sell everything from handmade crafts to drop-shipped products to digital downloads. Success in e-commerce often comes down to selling the right products and creating a smooth shopping experience for customers.

SaaS and digital product developers

Software-as-a-service (SaaS) entrepreneurs create digital tools and applications that solve problems for companies or consumers. This might include project management software, design tools, productivity apps, or specialized platforms for particular industries.

Digital product developers also create things like online courses, templates, or digital resources that customers can purchase and download. While this path often requires more technical skills upfront, it can be incredibly scalable once you build something people need.

Affiliate and performance marketers

Affiliate marketers earn commissions by promoting a company's products or services to their audience. Performance marketers focus on driving specific actions like clicks, leads, or sales for businesses. Both approaches require strong marketing skills and the ability to understand what motivates people to take action.

Many successful affiliate marketers start by building trust with their audience through helpful content, then recommend products they genuinely believe in. The income potential can be significant, but it takes time to build the audience and expertise needed to succeed.

Freelancers and service-based businesses

Freelancers and service-based digital entrepreneurs sell their skills and expertise directly to clients. This includes everything from web design and copywriting to consulting and virtual assistance. Many people start freelancing as a side hustle before transitioning to full-time entrepreneurship.

The advantage of service-based businesses is that you can often start immediately with skills you already have without needing inventory or complex systems. Building a strong reputation and reliable client base is crucial for long-term success in this space.

Benefits of being a digital entrepreneur

When you're starting a digital business, you've got a big decision to make in terms of starting an online business or a brick-and-mortar business. There are countless benefits to being a digital entrepreneur, especially if you lack resources.

Arguably the biggest benefit of digital entrepreneurship is the cost. As long as you can afford a domain name and website hosting, you can get your website off the ground.

Your business will likely attract more customers if you invest in lead generation and advertising, but that's not something you have to do. Simply creating quality, shareable content can help you build your online brand.

Attracting more customers to your brick-and-mortar store can be tough. You can get the word out around town and host special events, but that doesn't guarantee people will show up.

With online businesses, you have access to tons of marketing tools that allow you to reach a wider audience. With internet users spanning the world, digital marketing can really expand your reach.

Drawbacks of being a digital entrepreneur

While digital entrepreneurship is perfect for some people, there are a few downsides. Perhaps the biggest problem with digital entrepreneurship is that it may require advanced skills.

Unless you have a lot of money to invest in marketing, you need to learn the basics of marketing and growing your website. You also have to learn how to build brand loyalty and keep customers around, which can be tough when you're not interacting with your customers in person.

There are also unique challenges you face as a digital entrepreneur. If you run a digital store, you need to follow regulations regarding how you collect, store, and use data. You also need to protect your business against cyberattacks, and you need to invest in ecommerce business insurance.

For some people, facing these challenges can be overwhelming and a barrier to entry into digital entrepreneurship.

What skills do you need to be a digital entrepreneur?

Success in digital entrepreneurship isn't just about having a great idea or the latest technology. It comes down to developing the right mix of skills that help you navigate the online business world. While you don't need to be an expert in everything from day one, certain abilities can support your digital venture.

Some skills you can learn as you go, while others are worth investing time in before you launch. The good news is that most of these skills can be developed through practice or working with mentors who've been where you want to go.

You have knowledge, expertise, and passion in something

Above all else, you need to have something you're passionate about or knowledgeable about. If you simply hop on the next big trend, you're going to be competing with everyone else who decided to do the same thing.

Instead, you should look for a niche that you care about and can add value to. That way, you have something that separates your business or product from competitors.

You’re able to do most of your work remotely

Remote work is what allows digital entrepreneurs to reach a wider audience using fewer resources. If you want to be a digital entrepreneur, you should be able to do most or all of your work remotely. It helps to have a dedicated office space in your home; that way, you've got a place to work in peace and store any business-related paperwork.

You can make online sales

For online businesses, success is all about making online sales. Whether you sell a product or a service, the quality of your product doesn't matter unless you can convince people to buy it.

A good digital entrepreneur knows how to make online sales, and that doesn't mean simply posting listings on eBay. The better you understand the sales funnel and how your tone and content can drive sales, the better off your digital businesses will be.

You can do online marketing

Building a website and launching your business is one thing, but succeeding is a different story. Digital marketing is an essential part of succeeding as a digital entrepreneur, so you need to at least have the resources to invest or be willing to learn the basics of digital marketing.

Your website, the content you create, and your social media posts all play an important role in digital marketing.

You’re prepared for risk

Many online businesses don't succeed, so you shouldn't start an online business if you're not prepared for risk.

Starting a digital business is more affordable than a brick-and-mortar startup, but you still have to invest. Be prepared for the possibility that you might have to pivot to another business idea or take a loss on your investment as a digital entrepreneur.

You understand basic technology and digital tools

Digital entrepreneurs don't need to be coding experts, but having comfort with technology makes everything easier. This means knowing how to use basic software, understanding how websites work, and being able to learn new digital tools as they emerge.

You should be comfortable with things like email marketing platforms, social media scheduling tools, and basic analytics. The more tech-savvy you become, the less dependent you'll be on others to help run your business, which saves both time and money in the long run.

How to start your online business

The path from idea to actual business might seem overwhelming, but successful digital entrepreneurs often follow similar steps to get their ventures off the ground.

You don't need everything figured out perfectly before you start, but having a clear roadmap helps you avoid common pitfalls and wasted effort. With a digital business, you can start small, test your ideas, and grow gradually without huge upfront investments.

Here's a practical approach that breaks down the process into manageable steps:

1. Understand whether your product or service is in demand

Demand varies depending on what you're trying to sell, so make sure you do some market research. You don't want to sell a product or service that's not in demand, but you probably don't want to opt for the highest-demand products or services due to market competition.

2. Create a business plan

Once you know what you're going to sell and you've researched it to make sure it's in demand, it's time to write a business plan. If you don't know how to write a business plan, you can use a business plan template or business plan creator.

3. Acquire funding

Acquiring funding is different for every digital entrepreneur. If you're building a basic website to sell a service you can provide, you can probably fund your own business. If you're going to invest in inventory or spend big on marketing, you may want to acquire funding through venture capital, crowdfunding, or a small business loan.

4. Build a website

Now that you've got your funding, it's time to build a website. For this step, you have your choice between building your own website or hiring a professional. If you can afford it, a custom-built website will help separate your business from the competition.

5. Start marketing

Once you've taken care of the basics, you can start your mission to boost your brand. Digital marketing can involve social media marketing, YouTube content and advertising, blog posts, and more. The more effort you put into digital marketing, the better results you're likely to see.

Digital entrepreneurs need the right tools

Digital entrepreneurship is a great way to start a business, but you have to make sure you're prepared. Every digital entrepreneur should have the basic skills we talked about earlier, but you also need to have the right tools.

Mailchimp offers a suite of digital marketing tools to help digital entrepreneurs and small business owners like you reach a larger audience. With a website builder, email marketing tools, and more, Mailchimp is the simple solution to building your brand.

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Key Takeaways

• Digital entrepreneurship requires minimal upfront costs compared to traditional businesses, making it accessible to anyone with basic internet access and a domain name.
• From content creation and e-commerce to SaaS development and freelance services, digital entrepreneurs can choose from diverse paths that match their skills and interests.
• Success depends on developing key abilities, such as online marketing, sales, and basic technology proficiency, but you can gain these skills through practice and online resources.
• Digital businesses can serve customers worldwide from day one and scale gradually, allowing entrepreneurs to test ideas and pivot without major financial risk.

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