Internet Entrepreneurship
With the rapid increase in Internet usage combined with advances in Web applications, network, broadband, and wireless technologies, the Internet has become a global channel for businesses and individuals to communicate and conduct commerce. Globally, 4.9 billion people are connected to the Internet (International Telecommunications Union, 2021), and the value of global electronic commerce reached 26.7 trillion U.S. dollars in 2019 (UNCTAD, 2021). The continually developing Internet provides many entrepreneurial opportunities (Zhang & Zhou, 2013).
Internet entrepreneurship, also called e-entrepreneurship, refers to the act of creating innovative online businesses (Krishnan, 2013). Manuel (2006) defined Internet entrepreneurship as the creation of business activities on the Internet to sell or enable services that are exclusively available online. Besides selling products or services, Internet entrepreneurship includes the provision of information content, advertising, customer service, software design, and business collaboration (Bolton & Thompson, 2004; Sebora et al., 2009). Millman et al. (2009) developed a broad conceptual definition of Internet entrepreneurship: The development of an enterprise based on Internet connectivity and new business models and technologies by creating and implementing innovative trading outlets in a fast-growth niche market. Su et al. (2015) defined Internet entrepreneurship as the discovery and exploitation of business opportunities via Internet-capable and other electronic communication devices. Wang, Lin et al. (2016) pointed out that Internet entrepreneurship uses information technology (IT) to start a business that conducts transactions over the Internet.
The multifaceted evolution and application of the Internet have led to a significant diversification in Internet entrepreneurship. Among the prevalent types and instances of online entrepreneurship, the first involves the sale and purchase of goods and services, constituting the predominant business model within this sphere. Through online platforms, Internet entrepreneurs engage in commercial transactions, trading goods and services to generate revenue. E-commerce giants such as Amazon and eBay exemplify this category, capitalizing on the worldwide accessibility and widespread adoption of online shopping. The second category revolves around the provision of information content, where entrepreneurs earn income by creating and disseminating valuable insights and information on digital platforms. Utilizing blogs or self-media platforms focused on topics such as travel, health, finance or fitness, entrepreneurs connect with audiences and monetize their content through advertising and sponsorship partnerships. Karabacak and Genç (2019) conducted a study utilizing Turkish travel blogs as case studies of online entrepreneurship within this domain. Software development comprises the third category, with Internet entrepreneurs specializing in crafting digital solutions for individuals and businesses. The creation of iOS and Android applications for entrepreneurial purposes epitomizes this category (Van Drongelen et al., 2017). Notably, Zoom, founded in 2011, represents a prominent case in this realm, offering high-quality video conferencing tools that have garnered widespread adoption. The fourth category encompasses digital creative design, encompassing video production, advertising, graphics, and poster design tailored for online platforms. Designing messaging app stickers and themes has emerged as a popular form of Internet entrepreneurship within this category, enabling users to express themselves through visually appealing and culturally relevant content on messaging apps such as LINE. Kanahei’s LINE stickers exemplify successful entrepreneurship within this realm. Finally, the fifth category revolves around customer service, where Internet entrepreneurs undertake commissioned work and services facilitated by online platforms such as Crowdsourcing. Web sites such as Upwork and Fiverr connect freelancers with clients seeking various services, enabling entrepreneurs to establish and expand their businesses by leveraging their skills and expertise to serve clients globally.
Although the entry threshold is low and the market is large, e-entrepreneurship takes place in a fast-moving, highly uncertain, and inherently unpredictable trading environment (Matlay & Westhead, 2007; Pan et al., 2013). Furthermore, online competition is intense, and imitation is relatively easy; therefore, the success rate of Internet entrepreneurship is very low. According to Ranjan’s (2013) estimate, between 2% and 4% of Internet entrepreneurs succeed. However, many empirical studies have found that e-commerce and entrepreneurship can facilitate economic growth and development (Acs et al., 2004; Reynolds et al., 2003). Therefore, understanding and fostering Internet entrepreneurship has become one of the highest public policy priorities for many governments (Luthje & Franke, 2002; Sebora et al., 2009).