E-commerce is commonly known as electronic marketing. It encompases of buying and selling of tangible and intangible materials over an electronic system. The internet is an ideal instance of it. It is the driving force for various e-commerce business to emerge. Currently there are numerous users for telephone and internet. Due to this particular factor, the world of e-commerce business has also grown drastically. E-commerce has also given opportunity to entrepreneurs to grow their business. It has initiated them to spread it all around the world and make e-commerce business a billion dollar industry.The following article will cover topics including what is e-commerce,what is entrepreneurship and how e-commerce and business help in promoting entrepreneurship.
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What is E-Commerce?
Electronic commerce or e-commerce is about a variety of online business activities for products and services held virtually. It also pertains to any version of business oriented transaction in which parties interact. The interaction of the parties is virtual and the entire market setup is absent of any physicality.
E-commerce involves the concept of burning or selling virtually. That is, the goods or services are accessible on an online mode. E-commerce is also about providing the ownership for the goods or services.
Though understood generally, this definition is just a fraction of tracing the recent progress that has been continuously revolutionized in the business world. A more complete definition is
E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine The major different types of e-commerce are
• Business-to-business (B2B)
• Business to-consumer (B2C)
• Business-to-government (B2G)
• Consumer-to-consumer (C2C)
• Mobile commerce (m-commerce)(2)
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What is Entrepreneurship?
An entrepreneur is an entity who curates a new business, and has the patient temperament of taking risks to enjoy future rewards. The process of venturing a whole business is known as entrepreneurship. The entrepreneur is commonly witnessed as the focal source for investment and innovation. This innovation pertains to new, modified goods or services.
Entrepreneurs play a vital source for uplifting the economy. This is done by them through utilizing their skills. They bring in thoughts and ideas vital for meeting needs and generating the market further. Entrepreneurship is considered to be successful when there are risks incurred. These risks are incurred to create the path for profits, recognition and long- term growing opportunities. Entrepreneurship that falls to take the risks, would eventually incur grave losses and lose its recognition in the market.(3)
How is E-commerce Business a Good Factor for Entrepreneurship?
Entrepreneurs are the pillars of all the economies around the world. This is not only because of the numbers of entrepreneurial businesses across the world, but also by their important role of supporting the economy at times of need. Entrepreneurs are said to be the only genuine opportunity creator in the modern day world. And we can see entrepreneurs taking a lot of e-commerce benefits as well such as:-
● E-commerce exhibits the potentiality to grow as a source of wide exchange to entrepreneurial ventures.
● E-commerce is a cost efficient pattern to bring in huge amount of customers for entrepreneurs, globally.
● E-commerce boosts smaller companies to have a competition on par with large businesses.
E-commerce can shed a huge impact on the annual ratings and performance of business, its finance while stretching its growth band.
E-commerce has many prospects in which they can help entrepreneurs such as effectiveness and versatility. Entrepreneurs have been said to choose e-commerce because of the high profit rate. That is the reason entrepreneurs who look forward to higher interest from ecommerce are most likely to go with e-commerce(1)
How does E-commerce Business Help in Promoting Entrepreneurship?
Nowadays goods and utilities are shifting towards the electronic form and are sent to the consumer through information-based distribution channels.. This includes the Internet, which is the most famous information technology tool. The Internet acts as a collaborative function with its users and helps them get electronic service (e-service) to move to the frontline of automation priorities. De Ruyter et al defined e-service, “as an interactive, content-centered, and Internet-based customer service, driven by the customer and integrated with related organizational customer support processes and technologies with the goal of strengthening customer-service provider relationships.” (4)
Surjadjaja et al suggested that the concept of e-service is not simply a combination of the words electronic and service. A real e-service operation conducts almost all of the interrelationship between the seller and the consumer is conducted over the Internet such as ordering a t- shirt . This is true for the IT sector where an escalating range and numerous online service supplying entities have influenced companies to invest.
These investments are regarding the delivery of more service quality. It works as a competitive strategy focusing at segregating product offerings and continuously working towards satisfaction of customer needs. Rust and Kannan highlight that the main philosophy of e-commerce is to pay attention to consumers/citizens—winning and keeping the customers satisfied. (4)
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Are There Any Disadvantages of E-Commerce Business in Entrepreneurship?
Despite the positive effects of ecommerce in different entrepreneurs worldwide,the benefits do not always show improved business profits and sales.Therefore, even though there are a lot of benefits of ecommerce for business, the risk associated with it is high as well. It can also be said that entrepreneurs using e-commerce business can expand their business scope. But they still have to face obstacles with regard to Information Technology Usage.
This pertains specifically to activities on web pages and also the training given to entities working on the internet. It is well understood that there are certain concerning issues. These issues are said to be the instructions for the progress of entrepreneurs in e-commerce platforms. Entrepreneurs in developing countries especially find it difficult to access various resources. These resources include financial assistance, and the technology available in the market. (1)
So in the above article, we have covered topics including what is e-commerce and what is entrepreneurship. We also illustrated how e-commerce and business help in promoting entrepreneurship.We even went through what were the advantages and disadvantages of e-commerce business with entrepreneurship This research was conducted with the aim to identify the factors that affect the motivation of entrepreneurs to adopt e-commerce as a business platform.
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- What is e-commerce?
Ans:- Electronic commerce or e-commerce is about a variety of online business activities for products and services held virtually. It also pertains to any version of business oriented transaction in which parties interact. The interaction of the parties is virtual and the entire market setup is absent of any physicality.
- What is entrepreneurship?
Ans:- An entrepreneur is defined as the entity who ventures and looks for new opportunities to create a business. There is a streak of immense patience and continuous strategizing amongst an entrepreneur to bring their ideas into reality. The entire process of venturing a self made venture plan is called entrepreneurship.
- How does e-commerce and business help in promoting entrepreneurship?
Ans:- E-commerce can help take your business to people where you cannot be physically present.by having an online store you can sell your products /services to different locations from a single place.
(1)Imran Khan, Mohammed, et al. “Ecommerce for entrepreneurs: Boon or bane.” International Journal of Applied Business and Economic Research 14 (2016): 173-180.
(2)Gupta, Anjali. “E-Commerce: Role of E-Commerce in today’s business.” International Journal of Computing and Corporate Research 4.1 (2014): 1-8.
(3)Entrepreneur By ADAM HAYES
(4)Sebora, Terrence C., Sang M. Lee, and Nittana Sukasame. “Critical success factors for e-commerce entrepreneurship: an empirical study of Thailand.” Small Business Economics 32.3 (2009): 303-316.