Nano entrepreneurship: the keys to starting a digital business and not failing in the attempt

Nano entrepreneurship: the keys to starting a digital business and not failing in the attempt

Since the time of COVID-19, Argentina has seen a notable growth in the number of self-employed and small companies. It is estimated that more than 250,000 new ventures have been established in the country since 2020, reflecting an increase of 35% compared to the years before the pandemic.

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According to a study by Alegra.com, Argentina stands out as one of the countries where independent entrepreneurship shows expansion rates. Project that 32% of the entrepreneurial population is dedicated to retail, while 15% are freelancers.

At the same time, the Pyme Observatory Foundation accounted that only 20% of small and medium-sized companies managed to recover some of their profitability margins and increase their productivity after the pandemic, during which time an entrepreneurial boom occurred. According to the Global Entrepreneurship Monitor (GEM), at that time, there was a significant increase in the creation of new businesses due to the need to adapt to the economic and social changes caused by the health crisis.

This phenomenon was not foreign to the local reality, to the point that the number of startups grew in Argentina, especially in sectors such as electronic commerce, technology and digital services. According to the consulting firm Analogies, a new form of “self-employment”, That is, ventures that meant an immediate job opportunity within the reach of anyone.

Towards profitable digital ecosystems

In this way, profitable digital ecosystems begin to gain relevance, that is, business formats typical of the digital era, with three fundamental verticals: social media, ecommerce and operational (administration-logistics).

One of the fundamental qualities of profitable digital ecosystems is that, in most cases, Those who undertake are inexperienced in the business world. They do it simply out of necessity, without specific knowledge or experience.

In these cases, the main motivation for the generation of new ventures is “the lack of a job.” In other words, they are conceived more as an easily accessible “work outlet” that as the result of the desire to achieve autonomy and the dream of one’s own project.

Therefore, it is generally one-person projects, in which an inexperienced entrepreneur finds himself with the responsibility of do everything by yourself, from creating an ecommerce, managing it, managing inventory, storing merchandise, managing rotation, uploading content to social networks, advertising online, doing social media selling, managing payment platforms, and more.

At first glance, this is received as a complex adventure. But the hard data confirms it. And one of the most complete studies on entrepreneurship in Argentina, prepared by the Ministry of Production in 2018, showed that 8 out of every 10 new organizations reach two years of life, and only 2 reach 8 years.

The most frequent problems

Most people who start a business from scratch encounter difficulties in multiple aspects. On the one hand, the absence of reliable suppliers and efficient logistics. This results in difficulties in acquiring necessary products or services, as well as in managing their timely delivery to customers.

The lack of knowledge or experience in importing products is another great difficulty, which limits the ability to offer a good price, variety and stock availability in the business. And in turn, this limits the attractiveness of the project and its competitiveness in the market.

At the same time, the absence of efficient systems and processes often leads to inadequate business management, increasing operating costs and reducing the quality of service. The lack of automated tools and software means that Entrepreneurs spend a significant amount of time on repetitive manual tasks, which limits their ability to focus on more strategic, high-value activities.

On the other hand, without disruptive marketing strategies, entrepreneurs struggle to stand out in a saturated market. Combined with the fact of not having a clear strategy to identify and reach the target target, The combo ends up having an impact on the level of demand and sales.

Time and resources

Most people who venture into nano entrepreneurship are surprised by the number of elements they do not know when starting a digital business. Not only do you have to deal with suppliers, logistics and customers -which usually takes a long time- but now all the elements of the social networks.

At the same time, the practice forces us to break with many prejudices that idealize the act of entrepreneurship. For example, trusting that, since it is a digital venture, you will have to dedicate less time to it. When the house of cards falls, the person will want to delegate part of the marketing work to an agency, which sometimes fails by not being an expert in certain niches.

Not having knowledge of administration and team management to delegate secondary tasks is a big sponge of resources, time and money. The inability to do this more than makes it impossible for the company to grow. And the The importance of know-how also extends to other key areas, such as advertising regimes. Not knowing the rules and policies of social networks leads to sanctions and account bans, which sometimes means reverting all the progress obtained to zero.

CEO of Nano Entrepreneurship

Source: Ambito

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