Digital entrepreneurship, what is it?
This is a guest post about digital entrepreneurship by Sunny Business Services, an experienced corporate services provider helping founders of Estonian companies with the full range of business services. A member of the group, e-resident store by Sunny, has been serving e-residents since 2015 and is an authorised member of the e-Residency Marketplace.
More and more, entrepreneurship takes place digitally. And thanks to secure digital identity solutions like e-Residency, digital entrepreneurship is easier than ever.
When it comes to speed and access, technology seems to get faster and more open all the time. Digital transformation across the globe has had ripple effects across the way we live, work, do business and spend our free time. Entrepreneurship has itself transformed digitally.
More and more, entrepreneurship takes place within the digital environment. The pandemic has made businesses adapt to use digital solutions – like online stores and selling platforms – at a fast rate too. And, thanks to secure digital identity solutions like e-Residency, access to entrepreneurship is easier than ever. In this article, let’s dig a little deeper into the concept of digital entrepreneurship and learn how to get started.
What is digital entrepreneurship?
Digital entrepreneurship can be thought of as a subset of entrepreneurship – which put simply is really just self-employment. To be a bit more descriptive, entrepreneurship is the set of efforts, opportunities, and projects in which a person or a group finds a way to create an innovative company or solution, not only with the idea of making money but also of adding value for consumers and society.
Now, extend this clear idea of entrepreneurship into the digital environment. Imagine an undertaking – be it a company, product or service – that is carried out through digital platforms and social networks. This is digital entrepreneurship.
The digital world has reduced the barriers to start a new business and offered various paths to develop it. Through the digital environment, you have the possibility of starting an online business without investing too much money.
What does it mean to be a digital entrepreneur?
Digital entrepreneurship won’t generally suit the traditional business model of offering a product or service to a local market. Now, the focus of the business is broader – maybe even global. And digital tools help the digital entrepreneur know the habits and behavior of all their customers. In this way, you are able to detect new opportunities and implement new business models.
Digital entrepreneurs must adapt to the local particularities of their target audience and generate content that is relevant to said audience and in line with their brand identity. In addition, it is essential to know the competition and what actions they carry out within the market. On the other hand, a digital entrepreneur must know the necessary tools to optimize their content and time invested.
Get started in digital entrepreneurship
There are several stages to starting a digital business. The beginning can be intimidating – perhaps you think there are many obstacles – and so getting started is often the hardest part. Here are our some of our recommendations to overcome your doubts.
Analyze the current situation
At this point, it is necessary to carry out both an external and internal analysis. Analyze the strengths, weaknesses, opportunities, and threats within the sector/industry of interest.
Define the undertaking
After analyzing the market and the competition, the important thing here is that you can define your project’s vision – the ‘why’. This can help you be clear about what kind of digital entrepreneurship you want to carry out.
Clear objectives are essential to do business online. At this point in your journey towards digital entrepreneurship, the most important thing is to establish SMART goals. This means that they must be: specific, measurable, achievable, relevant and that they can be achieved within a particular time.
Define your branding strategies
The important thing here is to establish brand values that differentiate you from the competition and thus achieve relevance within the market. To do this, you must know what your strengths and weaknesses are.
Make a marketing plan
Making a marketing plan will be helpful for your digital entrepreneurship, as it will help you direct and position your business in the market. A good marketing plan is essential to achieve more visibility and reach a wider audience.
Monitor and analyze the results obtained
For your digital entrepreneurship project to grow, it is essential that you study the results you have obtained. In this way, you will be able to know where to invest more time and money and what to improve. It’ll help you to optimise your business and also give a complete picture of how its doing.
Digital transformation calls into question traditional business models and positions digital entrepreneurship as a job of the future. A high percentage of the future professionals will be independent entrepreneurs who create their projects and rely on digital tools to carry them out.
Why is estonia a paradise for digital entrepreneurship?
The rise of digital companies in Estonia is not a coincidence. It’s a causality of the opportunities offered by their commitment to technological development, entrepreneurship, and innovation. Estonia is the country with the fastest growth within the EU and the most entrepreneurs per capita in Europe. It’s also number one in tax competitiveness, adding to high levels of transparency and trust in its people and companies. In short, a truly digital nation. Capital city Tallinn was recently named Europe’s second most enterprising city after Cambridge in the UK. These two cities beat London, Paris and other major commercial centres to top spot.
In Estonia, the creation of a company is easier and cheaper than in most other countries. With e-Residency, foreigners are afforded with a unique, state-issued digital identity. This secure ID is the key to the country’s business environment. It provides access to a wide range of online services, such as creating a company and filing annual reports. Plus, e-residents can call on expert service providers from the e-Residency Marketplace to help with company formation, bookkeeping, and taxes.
E-Residency is designed above all for the business world. So more and more digital entrepreneurs can establish and manage their business online in Estonia. And with it, they can access the whole European market and beyond.
E-Residency is the first step to Digital Entrepreneurship
- Create and manage an online company.
- Open an account at the bank. Estonian banks require at least one personal visit, and the final decision is up to their KYC decision-making policies and procedures.
- Declare and pay company taxes in Estonia. It is essential to keep in mind that Estonia is not a tax haven. Your company may have tax obligations in another country if it has a Permanent Establishment there.
At Sunny Business Services, we share a passion for entrepreneurship without borders and digitalization. We are convinced of e-Residency and the benefits it offers. And we can help you register your Estonian company and give you the banking and accounting support you need.
Access all our services here on our website.
Setting up a company in Estonia and managing it from anywhere is possible thanks to the e-Residency program. And we can help you every step of the way. Access the advantages of being immersed in the digital world without the need to be physically in the country or the European Union.
Now you know everything you need to get digital company status in Estonia. At Sunny Business Services, we are waiting to help you take the next step!
If you are in Spain or in a Spanish speaking country or person and willing to know more about digital entrepreneurship in Estonia, are group member Sunny Latam is ready to help you too.
Contact us at Sunny LATAM.