Digital platforms have redesigned the architecture of relationships between customers, employees, and companies, as bytes and RAM permeate almost everything that we do. From buying groceries online to finding your dream house online, computing power has drastically improved how people around the world participate in the digital economy.
This transformation is known by economists, who study changes in technology and scientific progress, as general-purpose technology: one that has the power to continually transform itself, progressively branching out, and boosting productivity across all sectors and industries.
By their very nature, general-purpose technological revolutions are disruptive. Many benefits come not from adopting the technology but from adapting to it. In the UK, internet transactions account for more than a fifth of all retail sales, which is a 5-fold increase from just one-twentieth in 2008.
The Technology Economy
Given the fast-paced emergence of disruptive products and services, executives and entrepreneurs need to be able to detect the economic impact of these technological changes and respond with similar speed and foresight.
Researchers have found a link between technology innovation and national economic prosperity. As a result, many countries around the world are investing in digital infrastructure to jumpstart economies that have been weakened by the recent collapse due to the coronavirus pandemic.
Using Technology to Partake in the Economy
Faster broadband speeds have allowed people to take advantage of new digital tools like GIS, telemedicine, virtual reality, and video conferencing. These areas are all ways in which the youth can innovate and start businesses to improve productivity in the economy.
In the health sphere, the digital revolution has allowed physicians to share digital images with colleagues in other geographic locations.
Schools have been able to extend distance learning to under-served populations, and even to serve their regular students during the lockdown. Better technology and infrastructure in this area also enables personalized learning and real-time assessment.
Entrepreneurship in the Digital Economy
The transition of the economy towards the digital era is creating a type of entrepreneurship based on features that are greatly different from established game rules. the digital avenues available to small businesses today allow them to reach out to their customers to create an impact, innovate, and grow.
As the youth look to focus on new trends and develop proper business models to achieve scalability, it is important to jump on the digital bandwagon quickly to reap its benefits. It is also important to note that the initial growth period is often followed by a long period of stagnation. This stagnation is not due to a lack of opportunities but rather the inability of the entrepreneur to stabilize operations, an action that is essential to convert opportunities into profitable revenues.
Vision and Adaptability
Young entrepreneurs have youth and flexibility on their side. As important as it is to have a vision, the ability to explore avenues as they arise may allow for new, better ideas to be nurtured and brought to life. There is an endless number of bumps in the road to success.
Most importantly, being an entrepreneur in the age of a digital revolution requires more than just being a savvy businessperson. Above this, you need to understand not only the technology you are developing but the wider technology ecosystem. Being able to see where technologies will develop and provide opportunities in the future will allow for greater scalability and success.