Digital Entrepreneurship Key Points
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Questions and Answers

What phase does the Gartner hype cycle NOT include?

  • Trough of Disillusionment
  • Peak of Inflated Expectations
  • Innovation Trigger
  • Maturity Plateau (correct)

Which method is NOT recommended for gathering informal research on a business idea?

  • Asking coworkers about their preferences
  • Conducting surveys with potential customers
  • Consulting family about past purchases
  • Hiring a market research firm (correct)

In a B2C model, who are the primary customers?

  • Corporate clients
  • Government agencies
  • Individual consumers (correct)
  • Intermediary businesses

Which of the following is NOT a way for a content site to generate revenue?

<p>Offering adjacent services (B)</p> Signup and view all the answers

What does the 'Threats' section of a SWOT analysis evaluate?

<p>Established competition and pricing issues (C)</p> Signup and view all the answers

Which group is considered the least reliable when verifying a business idea?

<p>Family members (B)</p> Signup and view all the answers

In social commerce, which action is NOT typically pursued for revenue generation?

<p>Developing software applications for business management (D)</p> Signup and view all the answers

What is a primary characteristic of e-commerce applications?

<p>They enhance business operations and online transactions. (A)</p> Signup and view all the answers

Which of the following questions is most relevant when assessing the 'Weaknesses' in a SWOT analysis?

<p>What are the production costs involved? (B)</p> Signup and view all the answers

Which type of business primarily sells its products or services to other businesses?

<p>B2B (B)</p> Signup and view all the answers

What is a significant advantage of internet-based businesses regarding product reach?

<p>There are no geographical boundaries. (A)</p> Signup and view all the answers

Which aspect of digital entrepreneurship allows individuals to start a business quickly?

<p>Availability of ready-to-use online platforms. (B)</p> Signup and view all the answers

What is one of the primary incentives for owning a digital business?

<p>Potential for better income. (A)</p> Signup and view all the answers

What factor contributes to the affordability of online businesses compared to traditional retail?

<p>Lower maintenance and operational costs. (D)</p> Signup and view all the answers

Which statement is true regarding novices entering digital entrepreneurship?

<p>Simplified online applications welcome those with little to no experience. (A)</p> Signup and view all the answers

How does digital entrepreneurship support niche products?

<p>Broad online reach can successfully capture unique customer bases. (B)</p> Signup and view all the answers

Which characteristic of running an online business promotes work schedule flexibility?

<p>The ability to operate at any time of day. (C)</p> Signup and view all the answers

What demographic advantage does digital entrepreneurship provide?

<p>Economic opportunities are available for all ages. (D)</p> Signup and view all the answers

What is one benefit of using platforms like Amazon for starting an online store?

<p>They handle operational logistics, reducing startup effort. (B)</p> Signup and view all the answers

Which factor helps increase the potential for long-term success in digital entrepreneurship?

<p>Leveraging the power of the global online marketplace. (B)</p> Signup and view all the answers

What is a primary benefit of conducting informal research with industrial professionals?

<p>Their experience can offer significant weight to the responses. (C)</p> Signup and view all the answers

In the context of the Gartner Hype Cycle, which phase is NOT associated with the maturity of emerging technologies?

<p>Decline Phase (B)</p> Signup and view all the answers

What is a characteristic of businesses operating under the B2B model?

<p>They engage mainly with other businesses for larger transactions. (C)</p> Signup and view all the answers

Which factor is NOT typically considered a threat in a SWOT analysis?

<p>Availability of resources for production (D)</p> Signup and view all the answers

What typically characterizes a content site as a method to earn money?

<p>Revenue is generated through high traffic and advertisements. (C)</p> Signup and view all the answers

Which question is least effective when assessing the 'Opportunities' in a SWOT analysis?

<p>What are the production costs? (D)</p> Signup and view all the answers

In social commerce, which of the following is considered a strategy to generate revenue?

<p>Selling products through social media platforms (A)</p> Signup and view all the answers

What is typically the first step in using informal research to verify a business idea?

<p>Gathering feedback from friends, family, and coworkers (A)</p> Signup and view all the answers

Which of the following represents a typical characteristic of e-commerce applications?

<p>They facilitate various business operations online. (C)</p> Signup and view all the answers

When determining the strengths of a business idea, which question should be prioritized?

<p>What advantages does my product offer? (A)</p> Signup and view all the answers

What is a major characteristic of niche products in e-commerce?

<p>They can find significant demand through an online audience. (C)</p> Signup and view all the answers

Which advantage does the Internet offer that contributes to financial independence for entrepreneurs?

<p>Ability to create wealth independently of geographical limitations. (D)</p> Signup and view all the answers

Which statement describes the operational cost advantages of running an online business?

<p>Online businesses incur fewer expenses due to low maintenance costs. (B)</p> Signup and view all the answers

How does the Internet affect the demographic reach of online businesses?

<p>It eliminates geographical boundaries in market reach. (A)</p> Signup and view all the answers

What factor contributes to the ease of entry for inexperienced entrepreneurs in digital entrepreneurship?

<p>The availability of simple and intuitive e-commerce applications. (A)</p> Signup and view all the answers

What aspect of online business operations allows flexibility in work schedules?

<p>The ability to operate at any time suited to the entrepreneur. (C)</p> Signup and view all the answers

What is a common misconception among new entrepreneurs regarding online business?

<p>All products will succeed when sold online. (B)</p> Signup and view all the answers

Which of the following indicates an advantage of using e-commerce platforms like eBay or Amazon?

<p>They manage payment and shopping cart systems automatically. (C)</p> Signup and view all the answers

What limitation is lifted through digital entrepreneurship?

<p>The geographical boundaries for customer markets. (A)</p> Signup and view all the answers

What benefit do older adults receive from digital entrepreneurship?

<p>The ability to generate income without needing prior business experience. (C)</p> Signup and view all the answers

Flashcards

Unlimited Customer Reach

The internet allows businesses to reach a global audience, eliminating geographic limitations.

Affordability

Starting an online business can be done with minimal upfront costs compared to traditional brick-and-mortar stores.

Flexible Schedule

Online businesses offer flexibility in terms of working hours, allowing entrepreneurs to set their own schedule.

No Age Barriers

The internet provides a platform for entrepreneurs of all ages and experience levels to launch their businesses.

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Niche Products

The internet allows entrepreneurs to sell niche products, targeting specific customer groups with unique needs.

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Quick Start-Up

Online marketplaces like eBay and Amazon provide easy-to-use tools and platforms for starting and running an e-commerce business.

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Financial Freedom

Digital entrepreneurship offers the opportunity to create wealth and potentially achieve financial independence.

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Variety of Ideas

The internet supports diverse business ideas, providing possibilities for various business concepts to flourish.

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E-commerce

Online commerce, or e-commerce, is the buying and selling of goods or services over the internet.

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Accessible for Novices

The internet makes the process of starting and running an online business accessible, even for beginners.

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B2C (Business-to-Consumer)

A business model where a company sells products or services directly to individual consumers for personal use.

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B2B (Business-to-Business)

A business model where a company sells products or services to other businesses.

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Content Site

A website that generates revenue by providing valuable content to users and charging a fee for access, often supplemented by advertising.

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Social Commerce

A form of e-commerce that leverages social media platforms to drive sales and generate revenue.

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E-commerce Applications

Software and technology designed to simplify and facilitate online business operations, such as inventory management or payroll.

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SWOT Analysis

A framework for evaluating the strengths, weaknesses, opportunities, and threats related to a business idea or venture.

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Patent Protection

The ability of a product or service to be protected legally, giving its owner exclusive rights to manufacture, use and sell for a specified period.

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Production Cost

Cost associated with producing or acquiring a product or service, including materials, labor, and overhead.

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Established Competitor

A competitor that already offers a similar product or service in the market.

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Informal Market Research

The process of gathering information from potential customers about their interest in a product or service, including their willingness to pay.

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Global Reach

The ability to reach a global audience through the internet, breaking down geographical barriers.

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Niche Product Marketing

Selling unique or specialized products to a specific group of customers with unique needs.

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Low Startup Costs

Starting an online business is easier and less expensive compared to traditional brick-and-mortar stores.

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Easy Setup & Management

Online platforms and marketplaces streamline the process of setting up and managing an e-commerce business.

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Financial Opportunity

The internet offers the potential to create wealth and achieve financial independence through online business.

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Diverse Business Concepts

The internet supports a wide range of business ideas, making it a versatile platform for entrepreneurs.

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Simple Sales Process

The process of offering products and services for sale online, often made easier with user-friendly online tools and platforms.

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Gartner Hype Cycle

A graphical representation developed by Gartner that shows the maturity, adoption, and social application of new technologies.

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Study Notes

Digital Entrepreneurship Key Points

  • Wide Applicability: The internet supports many business models; virtually all ideas have potential, although some are better for long-term success.
  • Niche Potential: Unique/custom products, even with low local demand, can find success online due to broader reach.
  • Easy Start: Existing online platforms (e.g., eBay, Amazon) offer streamlined setup for webstores, payment processing, and inventory management.
  • Financial Freedom: Online businesses hold the potential for significant income generation and wealth creation.
  • Global Reach: Internet businesses transcend geographical limitations, allowing sales to anyone worldwide.
  • Affordability: Online business start-up costs are typically low compared to traditional brick-and-mortar stores due to website accessibility and low maintenance.
  • Flexible Schedule: Digital entrepreneurship offers flexible work hours, suitable for various schedules (part-time, full-time, seasonal).
  • Beginner-Friendly: E-commerce platforms have become user-friendly, enabling entrepreneurs with minimal experience to quickly establish presence.
  • All Ages Welcome: Online businesses offer opportunities for individuals of all ages, from retirees to teenagers.
  • Existing Business Expansion: Existing businesses can utilize the internet to reach new clients and increase sales.
  • Gartner Hype Cycle: A graphical representation of emerging technology maturity and adoption, with five phases illustrating the innovation lifecycle.

Business Types & Revenue Models

  • B2C (Business-to-Consumer): Products or services for individual consumers.
  • B2B (Business-to-Business): Products or services for other businesses (e.g., materials, supplies).
  • Content Sites: Generate income via content fees or advertising.
  • Social Commerce: Leveraging social media for sales and marketing.
  • E-commerce Applications: Tools or technology that streamline online business operations (e.g., inventory, payment processing).

Researching Business Ideas

  • Informal Research: Begin with feedback from friends, family, and colleagues to gauge early interest.
  • Professional Input: Seek advice from industry specialists, investors, or experienced entrepreneurs.
  • Customer Feedback: Gather direct insights from potential customers regarding needs and willingness to pay.
  • Step 1: Friends, family and coworkers: Gather initial insights from close sources to assess viability, through questions like product/service awareness, purchase interest, and overall desirability.
  • Step 2: Industrial professionals, investors, experts: Seek input from experienced professionals (e.g., small business administration, development centers, chambers, incubators) for expert advice.
  • Step 3: Potential customers: Directly gauge customer interest, pricing expectations, and online purchase habits.

SWOT Analysis

  • Strengths: Advantages of the product or service; potential for patent protection.
  • Weaknesses: Production costs, supply chain challenges, difficulties involved.
  • Opportunities: Use of new technologies, demand for the product or service, relevant policy changes.
  • Threats: Competition, lower prices from competitors.

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Description

Explore the essential concepts of digital entrepreneurship, including its wide applicability and niche potential. Learn how the internet offers unique opportunities for business models, low startup costs, and global reach. This quiz covers the flexibility and financial benefits of starting an online business.

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