CURRENT TRENDS AND MODELS OF ENTREPRENEURSHIP DEVELOPMENT IN THE CONDITION OF DIGITAL ECONOMY

PDF (Українська)

Keywords

entrepreneurship
entrepreneurial activity
digitalisation
digital economy
entrepreneurial business model
technological progress

How to Cite

Buzhymska, K., & Zhelikhovska, M. (2021). CURRENT TRENDS AND MODELS OF ENTREPRENEURSHIP DEVELOPMENT IN THE CONDITION OF DIGITAL ECONOMY. Entrepreneurship and Trade, (28), 15-19. https://doi.org/10.36477/2522-1256-2021-28-02

Abstract

The article clarifies the essence and presents the substantive characteristics of the digital economy as the basis for the latest developments in doing business. It is proposed to define the digital economy, growing on the basis of information economy as its continuation in a new capacity after an unprecedented and destructive technological breakthrough as a result of the fourth industrial revolution, characterised by nonlinear (exponential) speed of innovation, depth and scale of digital penetration and systems. The necessity of structural transformation of business processes and search of new models of doing business with the use of digital technologies is justified. There are generalised the parameters of the influence of digitalisation of the economy on qualitative transformations in the ways of organising and doing business, its marketing strategies; providing business with resources; production and transaction costs, which in the digital sector are sharply reduced or just disappear; network effect and economies of scale that are becoming global. In the process of studying the impact of the digital economy on the development of entrepreneurship, the main changes that have occurred in the business environment under the influence of “digitalisation” are identified, in particular such as: changes in the strategy of customer relations; new conditions in working with clients; changes in competition; new sources of profit and factors of competitiveness; new forms of business; changes in the business environment in the digital community. New business models have been found to emerge in the digital economy through the creation and development of innovative technologies. Among the most relevant business models that can be used by both new and existing business structures in the digital economy, there are the following models: e-commerce; crowdsourcing; free services; partnership; additional offers; personalised mass goods; rental services for cars, bicycles, electric scooters, scooters, etc. using digital technologies, etc. In general, these business models provide for doing business in the digital space and are able to provide companies with certain advantages: a narrow market segment, low costs, constant interaction with the consumer and so on.

https://doi.org/10.36477/2522-1256-2021-28-02
PDF (Українська)

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