1.4. Differences between entrepreneurship and e-entrepreneurship

Entrepreneurship is the process of creating something new while assuming the risks and rewards of your business. In other words, it can be defined as the process of an individual who is innovative and able to take the risk to create value. As explained in the previous topics, the entrepreneur is someone who takes responsibility in making judgmental decision on the use of resources to create a venture and to make profit. In Austrian or Schumpeterian economics, they define entrepreneurship as to gain the expected profit by utilizing the resources like funding advisory, low-interest loan or government support to create their business.

In contrast, e-entrepreneurship consists of creating owner business activity on the internet in order to sell or able a service online, such as magazine subscription, cell phones, software, T-shirts, bags, shoes, and etc. To explain, the traditional entrepreneurs typically start their business in small capital, low-value added and it takes time to set up the business. The traditional entrepreneurs need to raise capital, find a location, deal with suppliers, manpower problems and others to complete their business set up. In the modern day today, the technology was developed in advance; the internet and information communication technologies (ICTs) are very common to the public. Technology helps an entrepreneur to save time and capital during pre-startup process in e-business and therefore, e-entrepreneurs do not need to find a location for their store or to hire many employees and others. The growth in technology makes the traditional entrepreneurs join into e-entrepreneurship.

What is E-Commerce? Check out this video!

The internet is a powerful tool which can help the firm to solve the limitation on financial resources. Doing business online is much easier and cost saving if compared to traditional brick and mortal kind of business. At first, online business does not need so much human resources to run the business, unlike the traditional business need to employ people like a cashier, promoter, storekeeper, cleaner, and so on. Internet is one of the advantages of technologies, helping the business development become more efficiency and effectiveness. Seeing that, e-entrepreneurship refers to establishing a new company with an innovative business idea within the Net Economy, which, using an electronic platform in data networks, offers its products and/or services based upon a purely electronic creation of value.

Do you want to find out more about e-commerce and e-tools?
Here is another video to answer your business questions!