Digital Entrepreneurship Key Points

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Questions and Answers

What is a significant advantage of operating a business online compared to a traditional physical store?

  • Higher maintenance costs
  • Increased supply chain complexity
  • Limited product exposure
  • Ability to reach customers internationally (correct)

What characteristic of online entrepreneurship makes it accessible to newcomers?

  • High upfront investment
  • Simplicity of e-commerce applications (correct)
  • Complex legal requirements
  • Restrictive networking opportunities

Which factor highlights the financial potential of digital entrepreneurship?

  • Ability to create wealth independently (correct)
  • Dependence on physical store sales
  • Limited customer interaction
  • Guaranteed profits from local sales

What does the flexibility of scheduling in online business allow entrepreneurs to do?

<p>Choose when to operate their business (A)</p> Signup and view all the answers

Which type of products are particularly well-suited for e-commerce due to their unique characteristics?

<p>Niche and custom products (D)</p> Signup and view all the answers

What is one reason online businesses are considered affordable?

<p>Low start-up and maintenance costs (D)</p> Signup and view all the answers

Which demographic does online entrepreneurship principally benefit?

<p>People seeking flexible income opportunities of all ages (D)</p> Signup and view all the answers

What is a critical aspect about customer reach for online businesses?

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

Which of the following best describes the Business to Business (B2B) model?

<p>It caters to other businesses that may require goods like uniforms. (B)</p> Signup and view all the answers

What phase of Gartner's Hype Cycle represents the peak of inflated expectations?

<p>Peak of Inflated Expectations (D)</p> Signup and view all the answers

Which method of revenue generation uses social media platforms as a primary source?

<p>Social commerce that sells products directly through engagement. (C)</p> Signup and view all the answers

In the context of informal research, who should be consulted first to gather initial feedback?

<p>Friends, family, and coworkers. (C)</p> Signup and view all the answers

Which of the following is a characteristic of a content site as a revenue-generating method?

<p>It charges fees for high-value content and later may include advertisements. (A)</p> Signup and view all the answers

What is the primary purpose of conducting a SWOT analysis?

<p>To evaluate the potential strengths, weaknesses, opportunities, and threats of a business idea. (A)</p> Signup and view all the answers

Which of the following best describes the weaknesses component of SWOT analysis?

<p>The production costs and the ease of sourcing suppliers. (C)</p> Signup and view all the answers

What type of application is considered as an e-commerce application?

<p>Inventory management systems used by retailers. (C)</p> Signup and view all the answers

Flashcards

Business to Consumer (B2C)

A business model where companies sell products or services directly to individual consumers.

Business to Business (B2B)

A business model where companies sell products or services to other businesses.

Content Site

A website that generates revenue by providing content and information to users, often with paid advertising.

Social Commerce

Leveraging social media platforms like Facebook, Twitter, and Instagram to generate revenue.

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Informal Research

Using informal research to evaluate the viability of a business idea.

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SWOT Analysis

Analyzing a business idea's strengths, weaknesses, opportunities, and threats.

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Strength (SWOT)

An advantage that gives a business a competitive edge.

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Weakness (SWOT)

Limitations or drawbacks that could hinder a business's success.

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Wide Range of Business Concepts

The internet provides an extensive platform for different business concepts. While some ideas might be better suited for long-term success, nearly all ideas hold potential due to the vast reach of the online world.

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Unlimited Customer Reach

The internet allows businesses to tap into global markets, transcending geographic barriers. This means your customer base can extend beyond your local community or country, reaching a wider audience.

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Affordability of Starting Online

The internet offers a cost-effective way to start a business. Setting up an online store, compared to traditional brick-and-mortar establishments, requires significantly less capital investment. Many platforms provide tools and services at minimal cost.

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Flexible Work Schedule

The internet empowers entrepreneurs to control their schedules. Whether you prefer working during the day, night, or a mix of both, you have the flexibility to set your own hours and manage your business according to your personal needs.

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No Age Barriers

The internet democratizes entrepreneurship, making it accessible to individuals of all ages. Whether you're a seasoned professional or just starting out, the online world provides opportunities for entrepreneurs of all backgrounds.

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Potential for Financial Freedom

The internet offers a significant incentive for business ownership: the potential for increased income. With the right strategy and effort, online businesses can generate substantial financial rewards.

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Niche Products

The internet creates unique opportunities for niche products. These products, while potentially limited in local markets, can find large customer bases online through targeted marketing and specialized online platforms.

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Ease of Entry for Novices

The ease of use and accessibility of online platforms have made it possible for individuals with little or no experience to launch and operate businesses online. Tools and resources are readily available to guide entrepreneurs through the process.

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Study Notes

Digital Entrepreneurship Key Points

  • Vast Potential: Wide range of business concepts thrive online. Ideas have potential for success, regardless of specific focus or longevity.

  • Niche Products: Unique or custom products are highly viable in e-commerce due to the internet's broad reach. They may lack local demand but find a market online.

  • Quick Start: Easy access to platforms like eBay and Amazon storefronts helps expedite launch. These platforms often handle crucial aspects like website setup and payment processing, simplifying initial steps.

  • Financial Freedom Potential: Digital entrepreneurship offers the opportunity to build wealth.

  • Global Reach: Businesses have access to massive markets without geographic limitations. Products and services can be sold locally, nationally, or globally.

  • Affordability: Website creation and maintenance costs are often low, contrasted with substantial physical retail space requirements. This low startup cost is crucial.

  • Flexibility: Schedule is customizable (part-time, full-time, seasonal). Work can be completed at different times of the day, accommodating varied lifestyles.

  • Novice-Friendly: Internet-based businesses have dramatically improved in user-friendliness. The sale process is straightforward, and shops can be set up with minimal prior experience.

  • Age-Inclusive: Online businesses create opportunities for entrepreneurs of all ages, from retirees to teenagers.

  • Business Expansion: Existing businesses can leverage the internet to expand their reach and increase sales efficiently.

Types of Digital Businesses

  • Business-to-Consumer (B2C): Businesses selling to individual consumers, such as online retail.

  • Business-to-Business (B2B): Businesses selling to other businesses, such as in industrial supplies.

Revenue Models

  • Content Sites: Charging for valuable content or information, potentially supplemented by ads.

  • Social Commerce: Leveraging social media platforms like Facebook, Twitter, and Instagram to generate revenue through sales (eg. selling apps).

  • E-commerce Applications: Technology products which streamline online business operations.

Researching Business Ideas

  • Informal Research: Gathering initial feedback from friends, family, and coworkers.

  • Expert Validation: Consulting with professionals, investors, and experts to obtain valuable insights based on their expertise.

  • Customer Validation: Seeking input from potential customers to verify demand and pricing expectations.

SWOT Analysis

  • Strengths: Identify advantages (competitive edge, patent protection).

  • Weaknesses: Analyze production expenses, supply chain issues.

  • Opportunities: Assess novel market trends, policy changes, and product demand.

  • Threats: Analyze competitors and their pricing strategies.

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