GFA Opinion

Technological Advancements and Its Effect On Entrepreneurship

Today, technology is a huge benefit to people, serving as a tool to modify their environment in a variety of ways, including in the business world. The rise of technological entrepreneurship has intrigued researchers in recent decades because of its significant impact on economic growth. 

Startups have recently emerged as an excellent means of advancing technology due to their continuous innovation and thorough planning. In today’s world, innovativeness is considered the most important attribute of a business for achieving success and improving quality. 

Technology has significantly influenced entrepreneurship by providing a platform for modern businesses to gain a sustainable competitive advantage, primarily through positive effects such as increased expertise and competence, reduced value, increased consumer trust, globalization of operations, and modernization of organizational activities and structure. 

The increasing pace of technology, particularly in recent years, is so swift that you can’t help but get swept up in a rising tide of growth whether you’re ready for it or not. Here are some advantages of how technology has influenced and created positive outcomes for entrepreneurs: 

  • Improved Communication 

Business technology helps organizations improve their communication processes, which can lead to increased productivity, good business strategies, and the efficiency to expand into other areas or nations.  

Companies can fill the economic market with their brand by leveraging several forms of information technology marketing communications and receiving feedback from consumers. 

These electronic communication methods can be used to quickly and efficiently communicate business status reports to leaders, inform employees on critical business projects, and connect with business partners and customers. Some of these methods include emails, chat services, websites and apps, and company billboards etc. 

  • Reduced Operational Costs 

Companies can save on expenses by leveraging information technology resources. Financial improvements can also be achieved by switching high-cost tasks to an online environment.  

Email support can be provided to customers at a lower cost than a live customer support call. Some jobs might also be outsourced; workers can work remotely; and the company can explore lower-cost communication options. 

Mobile technology enables home offices and field representatives to communicate and share information, and duplicate duties may be centralized in one position using IT infrastructure. 

  • Increased Productivity 

Companies can enhance their workers’ productivity by implementing new technologies. Business technology can be used to reduce the amount of manual work required in business functions, making work more efficient and smoother. Top management can also use technology to easily create measurable goals for their employees to help them achieve and maintain company objectives. 

If technology offers a higher level of output than employees, business owners may choose to expand operations using technology rather than personnel. 

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  • Customer Reach Expansion  

Companies can also use technology to reach national and international markets rather than just selling consumer goods or services locally. 

Virtual stores are the most common way for businesses to sell their products in different economic markets. These websites are a low-cost ideal solution that consumers can use whenever they need to purchase goods or services. 

Businesses can also use online marketing as a tool to reach new economic markets and customers by strategically placing web banners or ads. 

  • Improved Organizational Efficiency 

Streamlined work flow systems, unified storage, and collaborative work spaces can strengthen a company’s efficiency and allow employees to complete more work in a timely manner. 

IT systems can be used to automate routine tasks, make data analysis easier, and store data in a way that can be easily retrieved for future use. 

Technology can also be used to respond to customer questions via email, live chat, or a telephone routing system that connects a customer to an available customer service agent. 

  • Secure Information 

Technology can also be used by business owners to create secure environments for storing and managing business or consumer information. 

Many forms of business technology or software programmes are user-friendly, allowing business owners with only a relatively basic understanding of information technology to take full advantage of their tools and features. 

  • Collaboration and Outsourcing 

Business technology enables companies to outsource business operations to other people and establishments on a global scale.  

If a startup lacks the necessary resources or staff, they may consider outsourcing some services, such as technical assistance and customer support. Outsourcing technology also helps companies to contract functions to the most cost-effective areas, including international countries. 

This can help companies lower costs and focus on completing the business functions they do best. 

  • Strategic Advantage over Competitors 

Adopting information technology resources essentially allows a company to maintain a competitive advantage over its competitors. Companies that use a first-movers strategy can use information technology to develop new products, differentiate their products from the competition, or improve their customer service.  

Companies with a low-cost product strategy might seek information technology solutions to reduce expenses through higher productivity and decreased personnel overhead. Companies can also incorporate information technology into their products to make switching platforms or products less difficult for customers. 

Silas Ugochi

Silas Ugochi is a Staff Writer and Content Creator at GetFundedAfrica. Ugochi is an educated content writer who relishes using her skills to help GetFundedAfrica's Media Team achieve the goal of sharing the success stories of African entrepreneurs. When she isn't writing articles, she can be found listening to music, reading, or DJing.

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