The digital entrepreneurship scenario is promising and growing. This is because entrepreneurship on the internet has become the main activity of many people, especially after the Covid-19 pandemic.
Thus, in 2020, 54% of digital ventures were less than a year old, according to the research Digital Business Panorama Brazil 2020, from HeroSpark.
“The digital environment is more favorable than ever for commercial negotiations and the connection of brands with their audiences”, says the business consultant at Sebrae, Vanessa de Oliveira.
Therefore, in this guide, you will understand the concept of digital entrepreneurship, discover its advantages and importance, see tips for starting a business and how to be a digital entrepreneur.
What is digital entrepreneurship?
Entrepreneurship Digital is a set of actions aimed at implementing business models that offer a product or service on the internet.
Furthermore, it can also be defined as the ability to identify problems and opportunities and develop solutions by creating a business model. online business beneficial to everyone.
Finally, several business models can be applied to digital entrepreneurship, such as content production, e-commerce, application development, infoproducts, etc…
How did digital entrepreneurship emerge?
The history of digital entrepreneurship dates back to the beginning of the internet, in the 1990s. With the popularization of the world wide web, a new means of communication and interaction emerged, which opened up previously unheard of business possibilities.
It was in this scenario that the first digital entrepreneurs emerged, using the internet as a platform to sell products and services, such as books.
Over the years, digital entrepreneurship has evolved and become increasingly sophisticated, with the use of new technologies and digital marketing strategies.
Therefore, nowadays, it is possible to create and manage a business entirely online, from creating a website or virtual store to advertising and selling products and services.
Importance of digital entrepreneurship
The importance of digital entrepreneurship is defined by factors such as massive access to the internet and the growth of online activities, such as shopping, courses and use of social networks, for example.
In this sense, having a digital presence is a matter of survival for any business.
In Brazil, 81% of the population over 10 years of age has access to the Internet, which means 152 million people, according to search 2020 of the Brazilian Internet Steering Committee.
Therefore, digital entrepreneurship is important not only for established companies that want to ensure an online presence, but also for beginning entrepreneurs.
Therefore, for 62% of digital entrepreneurs in Brazil, digital enterprise is a source of additional income, complementing income from “official” work.
The data is part of the research Digital Business Panorama Brazil 2020, from Herospark.
Advantages of digital entrepreneurship
The advantages of investing in digital entrepreneurship:
- creation and development of a direct relationship channel with your customer;
- cost reduction;
- earnings growth;
- flexibility of working hours;
- increasing the speed of feedback;
- greater visibility of products or services;
- flexibility of product offering;
- be a global business and reach national and international customers.
Disadvantages of digital entrepreneurship
One of the biggest disadvantages is the intense competition, which requires constant efforts to stand out. Additionally, a lack of personal contact can make it difficult to build strong relationships with customers and partners.
Another disadvantage is rapid technological obsolescence. The rapid advancement of technology requires constant updating, which can be challenging and costly for digital entrepreneurs.
Furthermore, dependence on online platforms increases the risk of vulnerabilities such as cyberattacks and sudden changes in search algorithms.
Finally, digital entrepreneurship requires diverse skills, from marketing and sales to website development and finance management. The need to master multiple areas can be overwhelming and require a high investment in time and resources to acquire specific knowledge.
Types of digital entrepreneurship
There are several types of digital entrepreneurship and most of them can be applied to practically any area of knowledge. Some of the types are selling video classes, developing software and games, selling e-books, virtual stores, social networks, marketplaces, among others.
How digital entrepreneurship works
Digital entrepreneurship can start with minimal investment and even through free channels and platforms available online.
This way, the business can structure itself and take on a more robust form.
Thus, an example of this are businesses that are structured based on a social network with organic (non-paid) strategies and then invest in other channels such as marketplaces.
Digital entrepreneurship in Brazil
Digital entrepreneurship has stood out in Brazil, driven by the rapid growth of connectivity and Internet access. According to recent data, more than 70% of the Brazilian population is connected, offering a broad and promising market.
Furthermore, it has played a fundamental role in the Brazilian economy, generating jobs and driving innovation. The sector is estimated to have contributed around 1.7% to Brazil's GDP in 2020, demonstrating its significant economic impact.
However, digital entrepreneurship in Brazil also faces challenges, such as the lack of adequate infrastructure, regulatory issues and the need for training in digital skills.
Digital entrepreneurship in Brazil: learn about the main challenges of starting a business in the country
Despite being a growing scenario in Brazil, entrepreneurship still represents a great challenge. Discover some:
- Entrepreneurial scenario: Brazil presents a promising but constantly evolving digital market, requiring adaptive skills to overcome fierce competition and rapid changes.
- Infrastructure and access to technology: We still face challenges in internet quality and access to devices, limiting the reach of digital enterprises in some regions of the country.
- Bureaucracy and tax burden: Digital entrepreneurship is impacted by bureaucracy and high taxes, demanding time and resources to deal with complex legal and tax obligations.
- Entrepreneurial training and culture: The lack of adequate training and the stigma of failure are still challenges, requiring greater government support and skills development initiatives to boost digital entrepreneurship in Brazil.
What does it take to be a digital entrepreneur?
To be a digital entrepreneur requires planning, study and focus.
Therefore, the first step is to study the “Business model”, that is, what your digital business will serve and for which audience it is made.
After, empower yourself in digital opportunities and tools. To do this, evaluate the possibility of hiring specialists in these channels as partners or service providers.
Furthermore, another tip is that the digital market is quite dynamic and agile. Customers change purchasing habits constantly and technologies also change.
“If entrepreneurs want their business to produce results, they need to be attentive and keep up with the dynamism of the digital environment”, advises the Sebrae business consultant.
Digital entrepreneurship ideas
There is no shortage of digital entrepreneurship ideas on the market. In many cases, all you need is a phone, computer, internet connection and a website with a registered domain.
Technology has made opening a business easy, possible and financially viable.
Think about something you like to do, know how to do very well or an area in which you specialize in which there is high demand or even few options on the market.
Therefore, see below 10 ideas to undertake in the digital environment.
- Set up an online store;
- Creation of blog content;
- Make sales on the marketplace;
- Provide online consultancy and mentoring;
- Produce and sell ebooks;
- Develop applications or games;
- Launch a podcast;
- Be responsible for social media for one or more companies;
- Create a YouTube channel;
- Teach an online course.
Digital marketing and entrepreneurship: how do the two relate?
Digital marketing and entrepreneurship are closely related and can complement each other in powerful ways to drive the growth of a business. As an entrepreneur, it is essential to understand digital marketing strategies and tactics to promote your brand and attract potential customers.
Digital marketing involves a range of techniques and channels that help promote a business, including SEO, PPC, social media, email marketing and content marketing. As an entrepreneur, it's important to be familiar with these tactics so you can use them effectively to boost your business.
For example, SEO can be used to increase your company's visibility in Google search results, attracting more organic traffic to your website.
Meanwhile, content marketing can be used to educate and engage your potential customers, creating long-lasting, trustworthy relationships.
Therefore, along with digital marketing, entrepreneurship also requires leadership, time management, finance and business development skills. The ability to manage a team and make strategic decisions is fundamental to the success of a business.
What is the relationship between good innovation management and digital entrepreneurship?
Innovation management and digital entrepreneurship are intrinsically linked, as both are essential for the creation and growth of new businesses and products in the digital world.
Good innovation management can help entrepreneurs identify market opportunities and develop new ideas that meet customer needs more efficiently and effectively.
Furthermore, effective innovation management can also help companies improve their internal processes, develop new technologies and stay ahead of the competition.
On the other hand, digital entrepreneurship involves creating new businesses and digital products, which often require an innovative approach to be successful.
This may include creating new business models, products and services, as well as implementing advanced technologies to deliver unique customer experiences.
However, innovation management and digital entrepreneurship also present unique challenges.
Examples of digital entrepreneurship
Check out some examples of digital entrepreneurship:
- E-commerce: A classic example of digital entrepreneurship is e-commerce. Virtual stores such as Amazon, AliExpress and Mercado Livre are examples of companies that were born on the internet and have become giants in the online retail sector.
- Affiliate Marketing: In this modality, it is possible to promote products or services from other companies and receive commissions on sales made through your affiliate link. This can be done through blogs, social networks, videos and other online platforms.
- Content production: Content production is also a form of digital entrepreneurship. With a blog, YouTube channel or social media profile, you can create relevant content for a specific audience and monetize it via ads, sponsorships and partnerships.
- Application development: With the growing demand for mobile apps, app development has become an example of digital entrepreneurship. Companies like Uber and Airbnb are examples of companies that offer services through applications and have achieved success in the market.
Online consultancy: With the ease of communication provided by the internet, online consultancy has become a form of digital entrepreneurship. It is possible to offer consultancy services in areas such as marketing, finance, management and technology to clients around the world, without the need for a physical office.
7 digital entrepreneurship tips
Sebrae business consultant Vanessa de Oliveira gives tips for success with digital entrepreneurship. See below what they are.
- Make detailed planning of the business plan.
- Have the dynamism to put the plan into practice.
- Make an investment in technology training.
- Invest in training the platforms to function.
- Focus on the customer.
- Focus on your objective.
- Don't copy your neighbor.
Female digital entrepreneurship
Digital entrepreneurship feminine means empowerment and protagonism for women entrepreneurs.
Financial independence, protagonism in their own story and the need to have extra income, for example, are some of the reasons for women to undertake.
The conclusion is from the research Female Entrepreneurship in Brazil, carried out by Sebrae in February 2021.
In the third quarter of 2020, there were 8.6 million women-owned businesses in the country. And 49% of these entrepreneurs were also heads of families.
Finally, there is no shortage of examples of successful female entrepreneurship in Brazil, such as journalist Nathalia Arcuri, founder of Spare Me, the world’s first “entertainment and finance” channel; executive Ana Paula Tomelin, CEO of crowdfunding (crowd financing) of investments Investweb; Adriana Barbosa, CEO of the Feira Preta Institute and the PretaHub; Camila Coutinho, Brazil's first fashion blogger and now businesswoman.
Are you going to open a restaurant? Check out 8 tips from experienced entrepreneurs
