What is digital entrepreneurship?
Digital entrepreneurship is entrepreneurship that involves the internet and novel digital technologies.
Entrepreneurs were typically thought of as small business creators and owners working with small businesses like restaurants and stores. This means you can only do what your resources allow, and you've got a smaller potential customer base.
With digital entrepreneurship, you can reach people all over the world and use organic marketing tactics to build your customer base without spending a fortune. You can even save money by learning how to make a website or using a website builder, which means digital entrepreneurship is great for entrepreneurs 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.
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.