E-entrepreneurship can be defined as a concept in which the Internet is used principally to competitively and strategically achieve business objectives, goals, and vision. E-Entrepreneurs use the world wide web for interacting and completing cybernetic business transactions for their suppliers and customers. The E-entrepreneur concept has gained significant recognition among practitioners and academics recently. E-entrepreneurship is similar to entrepreneurship, especially regarding traits and attributes essential for success. The critical difference between these concepts mainly depends on the resources required to start the business, such as setup cost and infrastructure.
Entrepreneurship vs E-Entrepreneurship
As we discussed earlier, entrepreneurship contains producing a new service or product; assuming the rewards and risks, e-entrepreneurship will involve creating business activities using the Internet. In e-entrepreneurship, products or services sell only online, such as books, DVDs, Email services, magazines, cell phones, T-shirts, Software, computers, etc. E-entrepreneurship points out establishing a new organization by applying innovative thoughts in the net economy. It is necessary to mention that this is only possible because of the advancement in information technology.
E-Entrepreneurship and economic development issues
During the last century, the western world economy snowballed, indicating a story of discovering and using improved and novel ways to satisfy the needs and wants. Developing countries have a significant problem in developing the economy and economic growth. These two terms used are not the same. Economy Growth is essential but not enough for development. The economy’s growth indicates the country’s production or per capita income enhancement. Production is calculated in terms of gross national income (GNI) or gross national product (GNP), the economy’s total output of services and products.
Economic development represents the growth in the economy escorted by the change in economic structure and output distribution. These changes might contain an enhancement for the more impoverished half population’s material well-being; a drop in the share of agriculture in GNP, and an enhancement in the share of GNP of services and industry correspondingly; an enhancement in the skills and education of the workers; and considerable advancement of technical initiating inside the country.
The long-term growth influences by the factors included sustainable growth of labor productivity and increased labor force. The information and communication technology usage by e-commerce and organizations is strictly related to internet growth. Internet users raised 33% from 2015 to 2021 worldwide. In 2001, internet users distribution was 73% from developed countries whereas 27% from developing countries. in 2009, the count upsurged to 32% in total internet users worldwide. In 2019 86% of individuals used the Internet in developed countries, whereas 12% in developing countries. Almost the whole world population has access to the mobile network.
Moreover, 89% of the population has access to the LTE or higher mobile-broadband internet, and the other 11% has lived within reach of 3g internet worldwide. E-commerce started in developed countries in 2009 to comprise 95% of total e-commerce, but it grew in developing countries in 2019. After the Corona-19 pandemic, the importance of e-entrepreneurship has increased rapidly.
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E-Entrepreneurship examples from the United States
E-entrepreneurship started in a developed country like the United States, and we are taking organizations as an example from the USA. The best example for this purpose is eBay.com, google.com, amazon.com, etc. Discussing these organizations specifically provides us with excellent ideas about new idea implementation.
In the e-business world, eBay is an extensive classical example of a successful startup. E-bey has grown into one of the biggest online centers for trading worldwide by originating Beanie Babies’ trading market. They have shaped business as a new arena that hosts more than 25 million entrepreneurs and 185 million active buyers worldwide.
The organization constantly finds new paths to enhance customer satisfaction and experience by providing the facility for the buyer and seller to communicate about the transaction and rate each other. They also have a payment system via Paypal, allowing customers to pay their bills using electronic media rather than merchant credit cards. This system unlocks the new exchange method. By these innovations, eBay has grown its revenue to a new height of 100 billion US dollars in 2020, which is 16.9% higher than in 2019.
The giant from the Web search engine google is an e-entrepreneurial organization whose growth strategy is aggressive and a pioneer in innovation. Google is improving its technologies constantly to enhance the efficiency and level of its services and features. They provided the facility to their users by arranging a tool section on the website named google labs for an experiment.
Then the user will give them feedback about their innovation of tools and features. Google answers, google group, and google toolbar is other innovative developments in e-business from them. The Google founders, two graduate students from the computer department, quite frankly stated their creative mindset “Google is not a conventional company. We do not intend to become one.”
In this context, Google has made unconventional decisions to design its business and paid attention to building a superior search engine rather than launching marketing campaigns by spending millions of dollars. They improve and innovate the available technology to produce an easy-to-use, accurate, and fast search engine accessible at any time from anywhere. Google has a philosophy “Never settle for the best.”Google has violent competition with its competitors of search engine providers in the market.
Additionally, google’s strategy relies on constant entrepreneurship and innovation by providing innovative and new services to unfold new revenue channels. Google has introduced many services and products since the start of 2020 and has shared a plan to launch new products in 2021. Here is the more popular services list from the google family: G-mail for webmail service, google chrome for web browsing, google meet as a video platform to conduct online classes or virtual meetings, Froogle for the comparison of prices for online shopping, and many more.
Amazon.com’s success story is also the best example of e-entrepreneurship and innovation. The organization is the first one in the internet-based industry from its start. They are the pioneer in introducing the online business for book retailing. For the first time, they offered their customers (a “one-click”) program to recognize the buying process by taking detailed information from their customers, including credit numbers. Furthermore, they are the pioneer who used collaborative-filtering technology that allows their customers to take an idea from other people’s purchase history, similar to theirs and what they bought now.
It was the first time any organization launched a comparison-shopping system that guides its consumers to go to other retailers if they cannot provide a specific product. Amazon.com’s affiliates program was also the pioneer in internet business that moved millions of its consumers from its stakeholder’ websites to their websites. Indeed, Amazon.com is always the first mover to set the trend in e-entrepreneurship through continuous improvement and innovation.
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E-Entrepreneurship examples from Pakistan
E-entrepreneurship in Pakistan started in 2012 when Rocket international, a berlin based company, felt a gap in E-entrepreneurship in Pakistan, applied entrepreneurship strategies, and started work in Pakistan.
Daraz has a success story in E-entrepreneurship in Pakistan, and it’s the first online marketplace in Pakistan. Rocket Internet (RI), a Berlin-based startup, provided angel funding for and handled the early stages of Daraz. The RI Group is the biggest incubator of online firms in the world. They have invested in internet startups in developing and fast-growing areas and exported successful business models to those regions.
In 2012, with just five staff, RI established Daraz. Pk is the first e-commerce retail platform in Pakistan. Daraz was owned by RI, Oredoo.com, and CDC Global (the UK government’s investment bank), all in equal parts. Initially, the company was an online clothing store that sold its products (including clothing, shoes, and accessories).
Daraz began in 2012 as a fashion shop in Pakistan, but in 2015 expanded into Bangladesh and Myanmar, adopting a more generic marketplace approach and business model.
Daraz’s ultimate goal was to become the country’s go-to site for product research because of its extensive catalog and reliable online material. When Daraz becomes the destination of product information, even if one out of a hundred visits buys, that will be adequate.
These examples from the empirical studies about e-innovation and e-entrepreneurship establish that e-business success links with the combination of innovation and entrepreneurship. Moreover, These two factors are key drivers and enablers of e-business.