Challenge And Oppurtunities for Digital Entrepreneurship

Tourism in West Sumatera

Hesty Aisyah, Muhammad Amrin Lubis

STMIK Indonesia Padang

1. Introduction
• Organizations in the twenty-first century are heavily influenced by modern technical
advances, particularly digital achievements, which are being merged into numerous sectors
via the digitalization or digital transformation process (Zsarnoczky, 2018) One of them is
the tourism industry. The so-called digital tourism is growing more popular as a result of
digitalization in the tourism industry
• is tourism that involves the use of various digital innovations (open source systems,
technology platforms, cloud computing, ultra-fast and efficient search engines,
crowdsourcing, crowdfunding, big data, smartphones, and other devices based on wireline
and wireless network infrastructure) that enable organizations in this sector to more
efficiently and comprehensively meet the needs and requirements of their clients, as well as
to raise the level of their performance (Pencarelli, 2020).
Table 1: Examples of digital technologies transforming tourism
Background Research (cont.)
• Digital entrepreneurship is growing in importance in tandem with digitalization. It is a
business category whose popularity stems from the emergence and success of multibillion-
dollar digital startups (such as Airbnb and Uber, Amazon ,Google , Facebook) which owe
their dizzying success, above all, to modern digital technology, as well as the fact that it is a
business category (Watkins et al., 2018).
• Entrepreneurship and other topics digital entrepreneurship has recently emerged as a
significant characteristic for employment creation and growth buttoned up (Benyon et al.,
2014).
Literature Review
1. Digital Entrepreneurship
According to one of the European Commission's documents that digital entrepreneurship encompasses
all new initiatives as well as the transformation of existing enterprises that create and use digital
technology to deliver economic and/or social value. Digital firms are defined by a high level of novel
digital technologies (especially social, big data, mobile, and cloud solutions) to improve business
operations, create new business models, refine business intelligence, and communicate with consumers
and stakeholders. They are the ones who create the employment and possibilities for the future
(Kayumovich, 2020)
According to one of the surveys that covered more than 100 tourism SMEs in the West Sumatera in
2019, most of them were characterized by low levels of digitalization, while tourism SMEs with medium
or higher levels of digitalization was rare. In doing so, SMEs with low levels of digitalization used
solder digital technology predominantly, while SMEs characterized by a higher (medium) level of
digitalization were also applying more modern digital technology (Figure 2) (Duffy & Ang, 2019).
2. Oppurtunities for Digital Entrepreneurship
• Digital entrepreneurship opens up a slew of possibilities. foux believes that digital
entrepreneurship allows people to work from anywhere; promotes gender equality;
encourages social and economic inclusion; stimulates local development; contributes to
sustainable development; and increases economic efficiency, productivity, and income
opportunities (Poux et al., 2020).
• Changing existing and creating new business models, the introduction of new products and
services, increasing the efficiency of business processes, increasing the competitiveness of
organizations, increasing the competitiveness and growth of local and national economies
are all examples of the fundamental importance of digital technology (Hojeghan &
Esfangareh, 2011).
3. Digital Entrepreneurships Challenges and Roadblocks

• Aside from its numerous advantages and benefits, digital entrepreneurship is not
without its challenges and roadblocks. Sorooshian, for example, emphasizes the
following essential challenges for digital entrepreneurship Skills that are required,
infrastructure that is required, and many aspects of the business environment
(Sorooshian, 2021).
• Skills for identifying, acquiring, and implementing new technology that represents a
business opportunity for an entrepreneur, for complete digital transformation of the
organization, its business model, organizational structure, and culture, for identifying
and recruiting required talents, for their retention and development, and for managing
a virtual organization and virtual teams are just a few of the skills that a digital
entrepreneur requires (Li et al., 2018).
Research Methodology
• This research is done with a review studies of various literature and also field research to research
explores intensively about the background of the present situation, and interactions a social,
individual, group, institution, and society. Research with literature study is research with the same
preparation as other research but the sources and methods of data collection are by taking data in the
library, reading, taking notes, and processing research materials. Primary data research is collected
through observations and interviews. Researchers conduct interviews conducted to 100 West Sumatra
MSMEs from four tourism industry. Data validity is tested using confirmation method between field
research results, literature studies and several studies previous research.
• This research is compare some review studies of various literature for successfully pursuing the
opportunities listed above and mitigating or avoiding the challenges associated with digital
entrepreneurship. Various sets of practical recommendations have emerged as a result of specific
studies. On the one hand, these are activities that the government should take. On the other, they are
actions that the digital entrepreneur should take.
• The government is expected to support the creation of new digital companies and the
development of existing ones; encourage knowledge and information dissemination to
enhance digital innovation; create a clean and supportive regulatory environment;
strengthen digital infrastructure; facilitate access to finance; increase digital investments
create a fiscal and tax framework that is supportive; encourage education in training; create
conditions conducive to entrepreneurship; ensure a sufficient supply of appropriate talents;
encourage a competitive environment through promoting open standards and open data,
among other things.
• Digital entrepreneurs are expected to be innovative and encourage innovation within an
entrepreneurial organization; be open to new knowledge and skills; keep up with advances
in modern technology, particularly in digital; identify appropriate and acceptable methods
to finance entrepreneurial business; be adept at hiring and retaining talents; encourage
followers to acquire new knowledge and skills; be more globally focused; increase
organizational flexibility and reactivity; learn from other successful digital businesses, and
so on
Conclusions
• Traditional industries and organizations with rigid business models are being eroded by
digitalization and digital transformation. Simultaneously, they open up enormous prospects
for new businesses, particularly those in the entrepreneurial sector who can successfully
participate in the digital race through digital innovation. Due to their high level of flexibility,
those firms that can leave their present business model and adopt a new one based on the
deliberate use of current digital technology breakthroughs will take a significant lead in this
race. It's worth noting that, despite their existence, the barriers to entry into the various
realms of the digital economy are pretty low, resulting in fierce rivalry in the digital race.
Such rivalry not only contributes to the organizations' ongoing and progressive change but
also to the advancement of digital technology
Thank You for your
attention
especially thank you
for ICTE
hestyaisyah@stmikindonesia.ac.id