Digital Entrepreneurship Key Points
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Questions and Answers

What is primarily represented in Gartner’s Hype Cycle?

  • The historical data of technology innovation
  • The financial performance of companies over time
  • The maturity and adoption of specific technologies (correct)
  • The social responsibility of emerging technologies

    • Which of the following options best describes B2C businesses?

  • Businesses that provide products to other businesses
  • Businesses targeting individual consumers for personal use (correct)
  • Businesses focused on digital content distribution
  • Businesses that charge fees for content on social media

    • What is a common method for generating income from a content site?

  • Paid advertisements on the site (correct)
  • Providing free trials for services
  • Selling inventory management software
  • Offering consulting services

    • Which step of informal research involves seeking opinions from industrial professionals?

    <p>Step 2: Industrial professionals, investors, experts</p> Signup and view all the answers

    What aspect is NOT considered in a SWOT analysis?

    <p>Market trends</p> Signup and view all the answers

    In social commerce, what is a common practice for revenue generation?

    <p>Selling games and apps through social media</p> Signup and view all the answers

    What challenge might a business owner face regarding weaknesses in their product or service?

    <p>Determining production costs</p> Signup and view all the answers

    A business that interacts with other businesses falls under which type?

    <p>B2B</p> Signup and view all the answers

    What are established competitors considered in a SWOT analysis?

    <p>Threats</p> Signup and view all the answers

    Which of the following best describes e-commerce applications?

    <p>Technological tools that facilitate online business</p> Signup and view all the answers

    What aspect of digital entrepreneurship contributes to the broad reach of niche products?

    <p>Vast online audience</p> Signup and view all the answers

    Which of the following best describes a major incentive for owning an online business?

    <p>Potential for better income and financial freedom</p> Signup and view all the answers

    What characteristic allows digital entrepreneurs to work when they choose?

    <p>Flexible scheduling options</p> Signup and view all the answers

    Why might novices feel welcomed in digital entrepreneurship?

    <p>Ease of use of online selling applications</p> Signup and view all the answers

    Which factor makes starting an online business more affordable compared to traditional retail?

    <p>Lower costs for website creation and maintenance</p> Signup and view all the answers

    What is a significant feature of operating an online business regarding customer reach?

    <p>No geographical boundaries</p> Signup and view all the answers

    How has the growth of the Internet impacted the accessibility of entrepreneurship for various age groups?

    <p>Provides opportunities for all ages</p> Signup and view all the answers

    Which of the following is NOT a benefit of setting up an online business?

    <p>High initial startup costs</p> Signup and view all the answers

    What advantage do online auction sites like eBay provide to new entrepreneurs?

    <p>Website infrastructure management</p> Signup and view all the answers

    Which misconception might individuals have about starting an online business?

    <p>You need extensive business experience</p> Signup and view all the answers

    Study Notes

    Digital Entrepreneurship Key Points

    • Diverse Business Concepts: The internet supports many business ideas, some better for long-term success than others, all with potential.
    • Niche Products' Potential: Unique/custom online products can find large audiences online, even when local demand is low.
    • Quick Startup: Tools like eBay and Amazon storefronts readily facilitate online ventures, often handling website setup, payment processing, and product listings.
    • Financial Freedom: Online businesses offer the possibility of improved income and wealth creation.
    • Global Reach: Online businesses bypass geographical limitations, allowing sales to worldwide customers.
    • Affordability: Low costs for website creation, maintenance, and operating are often a key advantage over brick-and-mortar retail.
    • Flexible Schedule: Businesses online can accommodate various schedules—part-time, full-time, seasonal, or even night-time work.
    • Accessibility for Novices: E-commerce tools have become simple, allowing entrepreneurs to launch online businesses even with little experience.
    • All Ages Welcome: Online ventures offer economic opportunities for entrepreneurs of any age, including retired people and teenagers.
    • Business Expansion: Existing businesses can leverage the internet for significant customer expansion, increasing sales.
    • Gartner Hype Cycle: A framework to understand the phases of technology adoption (maturity, social application).

    Business Types & Revenue Models

    • B2C (Business-to-Consumer): Direct sales to individual consumers for personal use.
    • B2B (Business-to-Business): Sales to other businesses for commercial use (e.g., supplies).
    • Content Sites: Generate income from charging for content or information; advertising opportunities arise as user base increases.
    • Social Commerce: Using platforms like Facebook, Twitter, or Instagram to earn revenue by selling games, apps, or boosting online sales.
    • E-commerce Applications: Software that streamlines online business operations—like inventory control or payroll programs.

    Market Research Methods

    • Informal Research:
      • Step 1: Close Contacts: Gather feedback from friends, family, and colleagues for initial validation then move onto further research. Questions should focus on familiarity, purchase interest, and perceived value.
      • Step 2: Professionals: Seek advice from experts and investors to gain perspectives from their experience (e.g., Small Business Administration, incubators).
      • Step 3: Potential Customers: Target real customers to gauge their product/service interest, usage, and willingness to pay.
    • Detailed Research Methods: Gather data/evidence from multiple sources, to support your business idea and potential.

    Evaluating Your Idea

    • SWOT Analysis: Evaluate your idea using this framework:
      • Strengths: Advantages/patents
      • Weaknesses: Production costs, supplier difficulties
      • Opportunities: New technologies, demand, policy changes
      • Threats: Competitors, pricing strategies of competitors.

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    Description

    Explore the key concepts of digital entrepreneurship, including the potential of niche products, the rapid startup capabilities offered by platforms like eBay and Amazon, and the benefits of global reach and financial freedom. This quiz will help you understand the nuances of starting an online business and how it can be a viable alternative to traditional retail.

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