Digital entrepreneurship : challenges faced by Finnish professional service business owners during venture launch in online business environments

Abstract

The advancement in information technology development in the 21st century has created a novel online business environment with different characteristics than traditional business settings. A key difference is that online business environments are not bound by physical proximity, which has implications for all aspects of business, from service development to sales, marketing, and service delivery.

Previous entrepreneurial research on digital entrepreneurship and the online business environment emphasizes more technical domains, such as information technology goods and services and software development. A gap can be identified that would focus on professionals with entrepreneurial ambitions whose goal is to leverage digital tools and an online business environment, with little to no regard for technology entrepreneurship itself. As such, this study aims to fill this gap and provide a deeper understanding of the challenges professional-service business owners face during the launch of their ventures in online business environments and the factors that help mitigate these challenges.

Data were collected by conducting thirteen interviews with Finnish professional-service business owners operating in the Finnish market. Thematic analysis strategies were employed to analyze the data through which six main themes emerged. The primary challenges encountered during the launch phase were pricing challenges, acquisition of initial clients, and self-leadership. The factors that were seen as helpful in mitigating the challenges were launching pilot versions of services as a means of validation and re-iteration, leveraging networks for initial client acquisition, receiving support and guidance, and the propensity for self-education and investing.