Digital Entrepreneurship in the Fourth Industrial Revolution and beyond

Abstract

The nature of the confusion that underpins entrepreneurial processes and outcomes and the strategies for addressing it have been changed due to the Fourth Industrial Revolution brought about by the development of digital technologies. Technology is the main force behind digital entrepreneurship. The Fourth Industrial Revolution’s technological development is both a limitation and a turning point for digital entrepreneurship. Most importantly, it has been assumed that the Fourth Industrial Revolution will provide additional drivers for the future of digital entrepreneurship. The purpose of this chapter was to compile the most recent research on digital entrepreneurship, investigate how the Fourth Industrial Revolution’s digital transformation has affected this field, and explore how the COVID-19 pandemic has affected it. The study conducted an evidence-based literature review on digital entrepreneurship, using a qualitative analysis method and content analysis. The research found that digital businesses were unaffected by Covid-19 due to their familiarity with digital methods and business models. Covid-19 benefited digital entrepreneurs by allowing them to pivot to new markets and segments quickly. However, it also threatened their survival due to disruptions in their business model and supply chain. The study suggests that digital entrepreneurship in the Fourth Industrial Revolution is promising to continue.

1. Introduction

Today’s world is drastically changing, particularly concerning information and communication technologies (ICT). This change shows how quickly evolving digital technologies with novel functionalities alter market dynamics and standard business strategies, structures, and practices [1]. According to Hai et al. [2], this subject is currently the most debated due to the recent explosion in the adoption of digital technology. Everyone is impacted by digital transformation, and in most fields, the power of digital technology can be applied to all facets of an organization, mainly digital businesses. Organizations are being forced to change how they operate due to the global digital transformation, which includes artificial intelligence (AI), blockchain technology, and the Internet of Things. The COVID-19 pandemic forced many companies to adopt a new way of trading their goods and services to customers. Digital tools such as social media, big data, mobile, and cloud solutions were used. Because digital tools enabled entrepreneurs to operate remotely during the COVID-19 pandemic, digital entrepreneurship was regarded as the best business practice. Many issues that plagued other industries during the pandemic did not affect digital businesses.

According to Pananond et al. [3] and WIR [4], digitalization will fundamentally change how companies operate in globally interconnected value chains, both in terms of production and organization. The sector of digital entrepreneurship will considerably gain from this. “A few examples of the new technologies that are part of the digital transformation are the Internet of Things (IoT), artificial intelligence (AI), robotics-enabled automation, cloud, augmented reality (AR), virtual reality (VR), platform-based technologies, e-commerce, fintech, blockchain, and 3D printing” ([2], p. 10). When combined, globalization and cross-border connectivity enable organizations to operate throughout a wider region. However, these changes offer a financial chance for corporate operations to be restored, allowing for local production and consumption.

As earlier studies on using digital transformation in entrepreneurship only examined scattered phenomena related to it, digital entrepreneurship has needed more conceptual discussion and improvement. Some important fundamental questions are mainly ignored in the current literature. For example, what impact is digital technologies having on entrepreneurship? What sets digital entrepreneurship apart from traditional forms of entrepreneurship? The COVID-19 pandemic’s consequences on digital entrepreneurship in the context of the Fourth Industrial Revolution and how they will continue to be felt after. These queries will be addressed in this chapter.

1.1 Background

The First Industrial Revolution in 1765 was led by steam engines. Steam engines played a crucial role in transforming various industries, such as textile manufacturing, mining, and transportation. They provided a more efficient and reliable source of power, leading to increased production and economic growth. Following the First Industrial Revolution, the Second Revolution in 1870 was driven by electricity and oil-based power. It was characterized by advancements in electricity, oil-based power, and other key technologies. Electricity played a significant role in this revolution. Thomas Edison’s development of practical electrical systems, including the incandescent light bulb and the electric power distribution, was a breakthrough. This led to the widespread adoption of electric lighting, which transformed industries and urban areas, improving productivity and quality of life. The Third Revolution in 1969 was supported by electronics and information technology. Today, new technologies have been introduced, like Internet of Things (IoT), Artificial Intelligence, Big Data, and many more. In addition, in the late 1960s, advancements in integrated circuit (IC) technology that had been made in earlier years were maintained. ICs got more potent, more compact, and more reasonably priced. More intricate and advanced electronic devices have been made possible by the growing integration and downsizing of electronic components. As a result, more compact and effective computers, calculators, and communication systems were created. These new technologies are shaping what is being called the Fourth Industrial Revolution. The Fourth Industrial Revolution is characterized by the fusion of physical, digital, and biological systems, and it is expected to have a profound impact on almost every industry and aspect of society. One of the key pillars of the Fourth Industrial Revolution is the Internet of Things (IoT).

1.2 Problem statement

The COVID-19 pandemic has changed how businesses in all industries and regions operate for years. As a result of the changes brought about by the pandemic, enterprises have accelerated the digitization of their business controls, interactions with their supply chains, and customer relationships. Companies that were accustomed to operating in a free COVID-19 world have found this to be complicated. Even when there is no pandemic, dealing with changes in the workplace environment can be stressful for teams and individuals. It was easier and more accessible for digital entrepreneurs familiar with digital businesses. The pandemic developed a setting that will continue to support technological advancement and innovation. According to Hai et al. [2] and Nambisan [5], digital entrepreneurship is crucial, particularly in light of the COVID-19 crisis. Creating new business activities, enhancing business analytics, and quickly communicating with many customers are benefits of digital business. The development of new techniques and technologies may result from the expansion of digital entrepreneurship. In these COVID-19 times, this is critical to every business.

The introduction of untapped technological advances into various business and advancement fields, such as “mobile computing, cloud computing, social media, 3D printing, and information analytics” ([6], p. 5), in recent years has altered the nature of the tall flimsiness in entrepreneurship and its causes as well as the approaches to managing such vulnerability. This has resulted in various research queries on digital entrepreneurship at the connection of digital technologies and entrepreneurship that demand careful consideration of digital technologies and their unique qualities in shaping entrepreneurial activities during and after. The development of digital transformation is accelerating at this time, and it is impacting how organizations are evolving. Its consequences are still being defined. Therefore, the chapter aims to interpret and discover how people perceive digital transformation and how their minds change. It also highlights the good things that have happened due to the process and successes in digital entrepreneurship.

2. Theoretical framework

Digital entrepreneurship involves identifying new opportunities in the digital realm, creating and launching digital businesses, or transforming traditional businesses into digital ones. Digital entrepreneurs leverage emerging technologies such as artificial intelligence, machine learning, big data analytics, cloud computing, and the Internet of Things (IoT) to streamline processes, enhance customer experience, and drive growth. This literature review studies the various aspects of digital entrepreneurship including its definition, characteristics, and challenges.

2.1 Digital entrepreneurship

The rise of digital platforms and entrepreneurial ecosystems has significantly impacted innovation and entrepreneurship. However, the advantages entrepreneurs derive from these settings are widely recognized, and research on the technical upheavals that give rise to digital entrepreneurship is still pending [7], according to Scarborough and Cornwall [8]. Entrepreneurship is the process of starting a new business in the face of the possibility of failure and uncertainty of the business to generate income and growth by identifying significant opportunities and assembling the necessary resources to take advantage of them. According to Duan, Kotey, and Sandhu [9], entrepreneurs play a crucial role in the economy by creating jobs, making products, and offering customer services. Entrepreneurship is the solution to people’s unemployment, especially youth unemployment. There are many benefits to entrepreneurship, including creating employment opportunities that will help address socioeconomic issues like poverty and unemployment, which will, in turn, lower crime rates as more people find work. Scarborough and Cornwall [8] simply that successful entrepreneurs take every possible measure to improve their chances of success. Vineela [1] suggests that understanding every concept related to entrepreneurship is crucial for becoming a successful entrepreneur. Every entrepreneur needs to stay current on changes in the market and customer tastes and preferences to compete in the marketplace and reach business objectives. Utilizing contemporary digital tools and software can sometimes be necessary to communicate with customers and boost the value of products. Because digital entrepreneurship stems from entrepreneurship, the chapter began by explaining the concept of entrepreneurship.

Digital entrepreneurship is the intelligent adaptation of impactful digitalization to business. It is changing how business operations are done innovatively [5, 10]. “Digital entrepreneurship is at the heart of the digital economy, which is hailed as one of the most significant economic developments since the industrial revolution” ([10], p. 2; [11], p. 4). Zaheer et al. [10] suggest that digital entrepreneurship is making digital profit entrepreneurially using a set of available alternative digital enablers to support effective digital data acquisition, processing, supply, and utilization, according to a broad definition by Zhao and Collier [11], “digital entrepreneurship” refers to developing new businesses and changing existing ones through innovative digital technologies.

According to Sahut et al. [12], there are several definitions of “digital entrepreneurship,” and the research contributions fall broadly into two categories. The first one is investigating whether and how digitization alters entrepreneurship and the traditional process of starting a new business. The second is the research on new venture creation in the digital economy and entrepreneurial opportunities made possible by technological innovation in the sector (digital technologies as both enablers and outputs). Simply put, “the offer of digital products or services across electronic networks” is what digital entrepreneurship entails [13]. Digital entrepreneurship emphasizes entrepreneurship’s transition to the digital age. In light of this, digital entrepreneurship has been classified under numerous business categories, including production, sales, logistics, trade, business management, and operation [9]. DE improved the innovation of business models and procedures as well.

The Australian Innovation System Report [14] suggests that the values of entrepreneurial organizations have primarily been commended for their ability to create jobs and promote unused innovations. According to Zhao and Collier [11], this is changing as the experience and understanding of the digital economy develop, putting business owners and the businesses they found in a unique position to capitalize on new opportunities, adopt cutting-edge technologies, and reshape competition by entering untapped markets. The novel application of digital technologies for entrepreneurship has received more attention in recent developments in entrepreneurship research. For example, multinational software entrepreneurs in Iceland use social networking sites to grow their networks and spot business opportunities. Academic Research in digital entrepreneurship faces some difficulties despite expanding quickly. Confusion is brought on by the dynamic terminology used in the field. They use various terms from emerging terminology interchangeably as trends come and go. For instance, the term “Internet entrepreneurship” was first used in the field in 2000–2001; it later evolved into “e- and “cyber“ entrepreneurship around 2004, and now, it seems, we have settled on “digital entrepreneurship” [10].

2.1.1 Importance of digital entrepreneurship

The importance of digital entrepreneurship must be addressed in these times when technology is advancing. Traditional businesses need to pay attention to adapting to the trend. Digital business is different from conventional business. Digital enterprises use many models to run their businesses [12]. According to Zaheer et al. [10], digital entrepreneurs are the ones who are in charge of the business model and the company culture in this era. In order to provide supply resilience in the face of the COVID-19 pandemic, digital transformation has been crucial, according to Niu et al. [15]. Brands that have gone digital can now modify their order and supply volumes based on outbreak forecast information. This emphasizes the importance of digital entrepreneurship in these times when technology is advancing. For traditional businesses to survive in this digital age, they will need to adapt and change with the times. Digital businesses use many different business models, which can be challenging for traditional businesses to keep up with. Traditional businesses will need to learn to use digital tools and platforms if they want to compete in this era.

2.1.2 Communication with consumers

“Expectations from consumers and investors, as well as the potential for greater economic and social benefits, are driving digital transformation and innovation in digitalization” ([16], p. 2). Digital entrepreneurship helps rebuild unused businesses by creating technologically advanced products and services, eventually resulting in a faster rate of financial development. As a result, an open approach that energizes and supports business should be considered essential for financial growth. Vineela [1] articulates that the interaction between a buyer and a seller is simple because digital entrepreneurship is linked to using digital systems for all business operations. Compared to other communication modes, communication via the Internet is simple. Purchasing goods and products online is the most convenient option for consumers. People nowadays prefer buying things online rather than shopping in stores. As a result of the ease of purchasing, the number of customers can be increased.

2.1.3 Competitiveness of the market

According to Chaffey and Ellis-Chadwick [17], keeping up with the competition is essential in every business. A business can increase its customer base and compete on a more competitive level by using digital marketing. Digital technology is crucial for every business to meet the challenges of the market and expand its operations. It has revolutionized how businesses operate and has made it easier for companies to reach a broader range of customers. It is easy to make digital marketing strategies for businesses. However, making the right decisions can be difficult, especially when choosing the right digital marketing agency.

2.1.4 Affordability

Flyverbom et al. [18] suggest that business websites should provide as many services as possible to convert visitors into efficient customers and, as a result, consumers. Different entrepreneurs approach this in different ways, but the common goal for all is high sales for their company [19]. As a result, a well-designed website for any business can serve as a platform to achieve this goal. According to Peukert [19], digital technology is viable financially. This means that digital marketing is very inexpensive. The costs differ depending on the type of marketing strategy employed. As a result, the use of digital technologies can automatically reduce costs.

2.1.5 Digital ecosystem

The existence of a digital ecosystem is required for digital entrepreneurship. “The digital ecosystem” is at the core of the “Digital Entrepreneurial Ecosystem” framework, which Sussan and ACS [20] first introduced” ([21], p. 6). A digital ecosystem is defined by Li et al. [22] as a self-organizing, scalable, and sustainable system composed of heterogeneous digital entities and their interrelationships concentrating on interactions between many entities to increase system functionality, gain advantages and promote knowledge transfer, internal and transnational collaboration, and system innovation. Thanks to digital technology, businesses can create new services and products and adapt to their customers’ needs. New business models, new business models, and new business models can all emerge from digital ecosystems. Hence, the digital ecosystem is essential to businesses [9]. The context of the digital ecosystem is typically used when talking about digital ecosystems. A collection of digital assets that are connected and form a sophisticated network is known as a digital ecosystem. The foundation of digital entrepreneurship is the existence or growth of a digital ecosystem.

2.1.6 Digital management

According to Tsvetkov et al. [23], businesses must implement a digital management strategy if they want to stay competitive and relevant in the rapidly evolving digital world. A digital management strategy will assist companies in locating and seizing opportunities and controlling the risks brought on by digitization. Businesses must have a thorough understanding of their target market, the needs of their customers, and the best ways to use digital tools to satisfy those needs to develop an effective digital management strategy [18]. Tsvetkov et al. [23] define digital management as using digital tools to manage businesses using digitization as their operating framework. It encompasses various activities, including digital marketing, asset management, rights management, and supply chain management. By leveraging digital tools and technologies, businesses can achieve efficiencies and scale that were impossible in the past. The goal of digital management is to create customer value and manage business processes through the use of digital technologies. This is done by creating a digital strategy and roadmap that outlines the company’s goals and how they will be achieved. Additionally, digital management includes the implementation of digital marketing campaigns, using social media to engage customers, and using data analytics to understand customer behavior.

2.2 A concept for studying digital entrepreneurship

According to Zhao and Collier [11], emerging concepts like digital entrepreneurship are distinct from traditional and general entrepreneurship, which has been studied for years. Each of the five “pillars” identified by the European Commission [24] in its conceptual model of digital entrepreneurship is important to consider when analyzing it. These are (1) Digital business environment and ICT market; (2) Digital knowledge base and ICT market; (3) Access to finance; (4) Digital skills and e-leadership; and (5) Entrepreneurial Culture. According to the European Commission [24], the framework was developed to allow businesses and entrepreneurs to grow their companies in a welcoming environment while encouraging originality and creativity. Encouraging the development of online businesses will lead to the creation of new employment opportunities. Consumers will adopt technology more readily in an environment where it is readily available, claims Bisht et al. [25]. Entrepreneurs should promote a culture of market creation rather than concentrating on market development. There is a huge amount of untapped value-creation potential at the bottom of the pyramid. This leads to the need for the advancement of the framework to keep up with the trend and provide a more effective way of engaging in the digital technology business. In order to study this new phenomenon in a comprehensive and integrative way, Zhao and Collier [11] proposed an approach to study the relationships among variables in a hypothetical process of digital entrepreneurship. They created a new conceptual framework.

According to Zhao and Collier [11], three theories, namely the social network theory, the social capital theory, and the institutional theory, were chosen by the authors as the theoretical foundations for their model because of digital entrepreneurship’s social and networked nature. Social capital and social networks frequently seem to interact as digital entrepreneurship develops. For instance, OSS communities for open-source software are drawing entrepreneurs to the communities to share knowledge and innovate to generate and reap economic benefits. Relationships between individuals in a social network have the potential to develop into or lead to significant sources of social capital, according to the central claim of the social capital theory (e.g., information, knowledge, and resources). The performance of an individual or company’s innovation also depends on where they are in the network.

Their developed theory reflects the interaction between the three approaches and the five main factors influencing digital entrepreneurship. The authors argue that social capital is the most important of the three theories and that this theory has emerged as the most important to the industry. The authors say that the most crucial thing social capital does is provide a basis for entrepreneurship, which has been a critical factor in the growth of the digital marketing industry. In addition, the authors’ prior work on social capital in the context of developers and entrepreneurs sheds light on the important social factors for digital entrepreneurs (Figure 1).

Figure 1.

Conceptual framework for study of digital entrepreneurship. Source: Zhao and Collier [11].

According to Zhao and Collier [11], this model makes use of these theories to investigate how social networks at the individual, institutional, and societal levels, as well as social capital both online and offline, influence the discovery and exploration of digital opportunities as well as the results of entrepreneurial endeavors. It guarantees that social and economic organizations are operating efficiently. With the help of this model, it can specifically look into how social networks and social capital interact to influence the growth and results of digital entrepreneurship.

2.3 Problems with digital entrepreneurship

Without a doubt, digital business is booming, and the ICT market is expanding rapidly. However, there are still some issues that must be addressed. One of the most serious issues is that digital businesses are not immune to cybercrime. Cybercrime can harm a company’s reputation, finances, and physical security [26]. There is also no doubt that the new innovative changes offer a range of great opportunities for the ICT industry in digital entrepreneurship. However, in order to seize them, the industry will have to evolve. “The Gartner 2018 CIO Agenda survey shows that anxiety about being disrupted by digital business is a main concern of CIOs”. The shift of the industry or change can lead to cultural anxiety. This is because it calls for a significant change in behaviors and how things are done. As much change is good in business, but it comes with consequences. According to Matar [27], change is essential for businesses to succeed. To change, organizations first need to understand the challenges they face and how to overcome them. With the right mindset, embracing digital business can help mitigate the risks associated with change. By doing so, organizations can create a more efficient and effective workplace and better serve their customers. They are confident that embracing digital business can turn the threat into an opportunity for the industry.

2.4 Digital transformation and the Fourth Industrial Revolution

The Fourth Industrial Revolution is receiving much attention from society. It has impacted many aspects of our lives. Moavenzadeh [28] stated that digital transformation is expected to change many proceedings within the business sector. “The Fourth Industrial Revolution refers to the technological transformation society is undergoing in the 21st Century” ([29], p. 3). According to Ross and Maynard [29], when Klaus Schwab, the founder of the World Economic Forum, used the phrase “Fourth Industrial Revolution,” he was referring to a period characterized a technological revolution. “This shift in technological innovation is creating a vast ecosystem of interconnected, complex, and dynamic interaction between humans and the built environment” ([30], p. 8). According to WIR [4], the Fourth Industrial Revolution is defined by four main aspects: the digitization of products and services, the emergence of new digital business models, the spread of digital connectivity, and the development of new technologies such as artificial intelligence (AI), robotics, and the Internet of Things (IoT). The Fourth Industrial Revolution has three main characteristics. The three main trends in technology are as follows: (1) the convergence of digital, biological, and physical systems; (2) the rapid advancement of processing and storage power; and (3) the introduction of novel technologies like 3D printing, robots, and artificial intelligence. “The change is being fueled by the exponential rise of digital technologies.”

Technologies that are becoming more and more integrated into daily life include augmented reality (AR), artificial intelligence (AI), the Internet of Things (IoT), and driverless cars ([30], p.10; [2], p. 17). In Tang et al.’s [31] study, it was found that distributed innovation enhances business performance in digital innovation. It also partially mediates the positive link between distributed innovation and performance in digital innovation. Additionally, IT-enabled capabilities positively influence the connection between distributed innovation and digital innovation opportunities. Moreover, IT-enabled capabilities play a positive role in this relationship.

During the First Industrial Revolution, production was automated through the utilization of steam power energy. The second produced enormous volumes using electric power. Digital transformation or technical advancement is a never-ending cycle of competing advancements rather than a linear one. One example of a new technology that emerged concurrently with the development of the vehicle, the aircraft, and nuclear power is the cell phone, the radio, and televisions. When it came to cars, the invention of the internal combustion engine facilitated the development of the vehicle. The phonograph and television inventions came first in the history of radio and television. Technological innovation and transformation happen faster than ever before in the Fourth Industrial Revolution [6]. Comparatively, in just two years, Instagram reached 100 million subscribers, while the interactive smartphone game Pokémon Go drew 100 m users in just one month. It took 75 years for 100 million users to adopt the telephone” ([32], p. 9). Kodama [6] asserts that the Fourth Industrial Revolution encompasses more than merely sophisticated, networked machinery and systems. Its range is far wider. “Because of the integration of these advances in technology and their connections across physical elements, electronic, and biological realms, the Fourth Industrial Revolution is fundamentally different from previous revolutions” ([2], p. 17).

According to Kodama [6], the Fourth Industrial Revolution will have a profound impact on employees, organizations, and society. Organizations today need to strike a balance between the benefits of technology advancement and new job and employment conceptions, as well as local and global power shifts, as work and the meaning of work change for employees. The Fourth Industrial Revolution will be driven more than ever by digitalization and vast smart ecosystems, according to the latest study. As a result, machine learning and artificial intelligence will grow in importance and become indispensable to our daily operations. As a result, companies and employees need to reevaluate what new types of work might involve and how they fit into the concepts of the modern workplace. According to Zhao and Collier [11], these technologies drive the digital economy by opening up a new spectrum of options with substantial potential economic value and the capacity to drastically reduce the cost of new initiatives. Alibaba.com is an excellent example; it has helped millions of Chinese individuals launch enterprises and created a large number of jobs.

Moavenzadeh [28] studied the Fourth Industrial Revolution and its future in the world. September 2015 found that “90% of the news that the general public reads will be produced by computers by 2025, according to 50% of media, entertainment, and information strategy officers. One hundred percent of insurance and asset management officers concur that an insurer’s competitive positioning will depend on real-time sensor data streams by 2020. By 2030, most of our financial architecture will be supported by distributed ledger technology, according to 92% of banking and capital markets strategy officers. Fifty percent of institutional investors and sovereign fund strategy officers agree that by 2025, the majority of financial transactions, as well as management of important documents, will take place on blockchain architecture” ([28], p. 6). This emphasizes how important traditional need to adapt to digital businesses for them to keep up with the competition.

2.5 Digital entrepreneurship in the Fourth Industrial Revolution

The Fourth Industrial Revolution, brought in by the advancement of digital technologies, has altered the nature of the hesitation, which supports entrepreneurial processes, results, and methods for handling it. According to Budd et al. [33], the success of the Fourth Industrial Revolution is dependent on digital entrepreneurship. It creates, launches, manages, and controls business enterprises using new digital technologies. The Fourth Industrial Revolution’s technological advances have created opportunities for entrepreneurs and businesses of all sizes. Digital entrepreneurship has benefited from the advancement of technology as they work with it.

According to Budd et al. [33] and Moavenzadeh [28] digital technologies are becoming more important in the entrepreneurial process. Budd et al. [33] and Matt et al. [34] suggest that as we become increasingly connected to technology, it is likely that new technologies will profoundly impact human societies and the economy. They enable the instant transfer of ideas and the sharing of resources, stimulating innovation and providing new opportunities. Digital entrepreneurs have leveraged the latest technologies to create new businesses and industries. Opportunities for digital entrepreneurship abound in the Fourth Industrial Revolution, characterized by the widespread use of digital technologies. According to Budd et al. [33] and Purbasari et al. [21], digital technologies have significantly impacted how businesses are conducted. In particular, Nambisan [5] articulates that digital technologies have allowed businesses to operate much faster and more accurately. This has resulted in a rise in the number of businesses competing in a global market. As a result, digital entrepreneurs have become more prevalent and are making a big difference in the current economy. This is seen as a good thing happening to the economy.

According to Budd et al. [33], the Fourth Industrial Revolution’s technological development is both a limitation and a turning point for digital entrepreneurship. The technological development of the Fourth Industrial Revolution and the digital economy have been found to have several implications for digital entrepreneurship. The results of this study suggest that digital entrepreneurs should consider the following implications when developing their business models: technology developments can limit the ability of digital entrepreneurs to identify and exploit opportunities; technology developments can provide digital entrepreneurs with new opportunities to exploit, and technology developments can provide digital entrepreneurs with the ability to create new business models that are not possible with existing technology.

2.6 The impact of COVID-19 on digital entrepreneurship in the Fourth Industrial Revolution

The devastating global pandemic caused by the COVID-19 virus that hit the world in 2020 affected people and businesses worldwide. The pandemic had extensive effects that were felt all over the world. According to Purbasari et al. [21], the COVID-19 outbreak has created a lot of vulnerability, especially regarding economic uncertainty. This includes the rate of recovery, government interference and agreements, changes in consumer behavior and how they affect exchange efficiency, contemporary business practices, R&D, human capital development, and other factors that impact efficiency over the medium and long term. A few governments implemented travel restrictions, social exclusion policies, and event cancellation guidelines to prevent the spread of widespread.

Digitized businesses were hit hard as people lost their jobs, some businesses were forced to close their jobs, and businesses shut down [33]. “The digital revolution has transformed many aspects of life. As of 2019, 67% of the global population had subscribed to mobile devices, of which 65% were smartphones, with sub-Saharan Africa experiencing the fastest growth. In 2019, 204 billion apps were downloaded, and 3.8 billion people actively used social media as of January 2020” ([33], p. 2). Businesses were forced to shut down within days, causing economies to contract and industries to collapse. In addition, companies that did not have the digital infrastructure to continue making money were left without the ability to hire workers. This resulted in the death of many small businesses, their jobs, their income, and their assets. The fall in the value of the USD Dollar made it more difficult to move money around. The global financial crisis led to a currency crisis, and many countries could not pay their bills. Some of these countries could not pay their debts, and many others were bankrupt.

In response to COVID-19, numerous digital technologies are being used. The types of technologies that are used are clearly shown in Figure 2 on the next page. Because of the development of technologies, the Fourth Industrial Revolution made it simpler for digital entrepreneurs to run their businesses. Businesses can select a wide range of digital technologies for their operations. “These digital technologies include blockchain technology, the Internet of Things (IoT), big data analytics, artificial intelligence (AI) that uses deep learning, and next-generation telecommunication networks” ([35], p. 1).

Figure 2

The interconnected digital technologies used in digital entrepreneurship respond to COVID-19. Source: Schilirò [16].

Despite the negative effects the pandemic had on entrepreneurship, digital entrepreneurship has been greatly affected by the COVID-19 epidemic, according to Yáñez-Valdés and Guerrero [36], which has turned industries into digital solutions. In order to address social and economic challenges, digital entrepreneurship has given rise to projects in the fields of entertainment, banking, health, education, and digital payments. The crisis has altered the assessment of digital entrepreneurship, meaning that projects in the future will probably involve digital elements.

2.6.1 Challenges

The overall impact of the pandemic was felt from the beginning of the pandemic. Qermane and Mancha [37] imply that COVID-19 benefited digital entrepreneurs by allowing them to quickly and effectively pivot to a new market and segment. However, COVID-19 also posed a threat to the survival of the businesses as it disrupted their business model and disrupted their supply chain. The pandemic was the result of the Fourth Industrial Revolution. According to Purbasari et al. [21], the Fourth Industrial Revolution was a key development in the history of capitalism. It led to the development of new technologies and new businesses. The Fourth Industrial Revolution also significantly impacted the economy and society. The impact of the Fourth Industrial Revolution was felt in many ways. There was a shift in how businesses were run and the economy was organized. There was a shift in the way people lived their lives and the way they interacted with each other. According to Budd et al. [33], many established businesses have been compelled to change to accommodate the new global order. They have found this to be difficult. Many people have lost their jobs, and many others have been forced to shut down traditional businesses or open new ones. Another issue was that with so many businesses going online, there was a lot of competition. For improvement in their businesses, digital businesses need to improve their marketing strategies.

2.6.2 Benefits

The COVID-19 pandemic transformed business operations into digital [21, 37], according to Ross and Maynard. [29] and Purbasari et al. [21], digital businesses were unaffected because they were already familiar with digital methods of operation and their business model. The pandemic changed how people interacted with businesses, which caused a slew of issues. One of the issues businesses faced was that people were no longer willing to go to the business and buy the product because they could do so from home. However, this did not affect digital businesses as they are operating online, e.g., online shops and online services. “The digital revolution has transformed many aspects of life. As of 2019, 67% of the global population had subscribed to mobile devices, of which 65% were smartphones, with Sub-Saharan Africa experiencing the fastest growth. In 2019, 204 billion apps were downloaded, and 3.8 billion people actively used social media as of January 2020” ([33], p. 2). The DE benefited because customers’ attention was on purchasing online and using technology for many activities in their lives.

2.7 Entrepreneurial resilience and advancement following the pandemic

The COVID-19 epidemic has caused a paradigm shift in the growth and recovery of entrepreneurship. According to Sharma et al. [38], companies need to focus on creative ways to recover, embrace socially rooted orientations, and implement best practices for crisis management. Readjusting the entrepreneurial orientation or developing a new kind of entrepreneurship is necessary for the post-crisis entrepreneurial revival. Using AI-CRM technology in family enterprises, creating an entrepreneurial environment through value co-creation, and investigating owner motives, stretched resources, and dynamic capacities for post-disaster recovery are a few examples [39]. To increase a company’s resilience and competitiveness, it is necessary to pay closer attention to these new developments (Table 1).

Author and year	Title	Journal
Yáñez-Valdés and Guerrero, [36]	Determinants and impacts of digital entrepreneurship: A pre-and post-COVID-19 perspective	Technovation
Sharma et al., [38]	Entrepreneurial challenges of COVID-19: Re-thinking entrepreneurship after the crisis	journal of Small Business Management
Audretsch et al., [40]	Resilience and digitally advanced entrepreneurship	Entrepreneurship & Regional Development
Mitsa and Lyakh [41]	Application of digital entrepreneurship platforms in small and medium-sized businesses	Actual Problems of Economics

Table 1

Recent significant studies regarding the adaptation of Digital Entrepreneurship to Industry 4.0.

Yáñez-Valdés and Guerrero [36] focus on small business owners and startups; this paper probably explores the difficulties faced by entrepreneurs during the COVID-19 epidemic, including supply chain interruptions, changes in customer behavior, financial restrictions, and regulatory concerns. With an emphasis on resilience building, innovation fostering, and long-term business model development, the article explores how entrepreneurs have responded to the challenges posed by the pandemic and offers insights and recommendations for entrepreneurs and policymakers to reconsider entrepreneurial strategies in response to the COVID-19 crisis.

In their analysis of the connection between entrepreneurship and COVID-19, Sharma et al. [38] hope to support business owners and other interested parties in their endeavors, both in navigating the post-pandemic environment they are currently in and in the event that other crises arise. According to their research, business owners should integrate best practices for crisis management, take a socially grounded approach, and concentrate on creative strategies to recover. Readjusting the entrepreneurial orientation or developing a new kind of entrepreneurship is necessary for the post-crisis entrepreneurial revival. Audretsch et al. [40] suggest that By facilitating diversification, adaptation, access to international markets, and knowledge sharing, digital transformation improves entrepreneurial resilience and increases a company’s capacity to endure and expand in times of crisis. Mitsa and Lyakh [41] focus on small- to medium-sized businesses and how it is important for them to apply digital transformation in their businesses. As the world is moving rapidly, it is important to keep up with the trend.

3. Research methodology

This research aims to study the impact of COVID-19 on digital entrepreneurship in the Fourth Industrial Revolution and how it will be beyond. A qualitative analysis research method was used for this study. According to Bougie and Sekaran [42], qualitative research aims to gather and analyze non-numerical data to understand better ideas, opinions, or experiences (e.g., text). Using qualitative methods, you can learn more about concepts and experiences. For this study, secondary data sources were consulted. The chapter offers a comprehensive understanding of the field through a review of earlier research findings. Data were gathered for this study using secondary research techniques. A secondary research method is used to gather the information that has been published before. It is desk-top research. The information was gathered from various published sources, including books, journals, articles, case studies, and websites. A total of 50 journal articles, books, and publications were read, and 33 were used as a reference to the study.

Content analysis is the data collection and analysis of the content of a document. The content analysis aims to understand the meaning of textual data and information. Text mining aims to understand the meaning of the text (textual content) and the relationships between texts (relationships between the textual content and the relationships between texts). This method enabled the researcher to progress from dealing with gathered data to detecting patterns and developing new ideas. The information collected from journals, articles, books, and other sources was analyzed and organized to allow the researcher to identify patterns and develop new ideas.

4. Discussion of findings

4.1 The study of digital entrepreneurship

Digital entrepreneurship is the intelligent adaptation of impactful digitalization to business. It is changing how business operations are done innovatively [5, 10]. DE is a broad topic, and several authors define it similarly. These two authors defined it as an intelligent adaptation of digital technologies to entrepreneurship. “Digital entrepreneurship is at the heart of the digital economy, which is hailed as one of the most significant economic developments since the industrial revolution” ([10], p. 2; [11], p. 4). These authors studied and found that digital entrepreneurship contributes much to the economy by providing job opportunities to individuals. It has also been found that digital entrepreneurship has been classified under numerous business categories, including production, sales, logistics, trade, business management, and operation [9]. This is one of the importance of digital entrepreneurship. Enterprises use many models to run their businesses [12].

According to Zaheer et al. [10], digital entrepreneurs are the ones who are in charge of the business model and the company culture in this era. Overall, these authors suggest that it is very important for businesses to adopt the digital culture in order to survive. DE improved the innovation of business models and procedures as well. Purbasari et al. [21] suggest that an essential initiative for startups with a digital focus in the ecosystem of digital entrepreneurship is the intelligent adaptation of impactful digitalization to business. It changes how business operations are done innovatively [5, 10]. In the digital sector, technology has permeated every aspect of businesses. A digital ecosystem is defined by Li et al. [22] as a self-organizing, scalable, and sustainable system composed of heterogeneous digital entities and their interrelationships concentrating on interactions between many entities to increase system functionality, gain advantages and promote knowledge transfer, internal and transnational collaboration, and system innovation. The digital ecosystem plays a very important role in DE.

Digital entrepreneurship involves identifying new opportunities in the digital realm, creating and launching digital businesses, or transforming traditional businesses into digital ones. Digital entrepreneurs leverage emerging technologies such as artificial intelligence, machine learning, big data analytics, cloud computing, and the Internet of Things (IoT) to streamline processes, enhance customer experience, and drive growth. They understand the potential of these technologies to disrupt industries and create new markets. Through digital entrepreneurship, businesses can improve their operations by automating manual tasks, integrating systems, and analyzing data to make informed decisions. This can result in increased productivity, reduced costs, and improved customer satisfaction.

4.2 Digital entrepreneurship in industry 4.0

The dynamic landscape of digital entrepreneurship in the context of Industry 4.0, or the Fourth Industrial Revolution, is depicted in this section. It emphasizes how entrepreneurship may make use of cutting-edge digital technologies including cloud computing, big data analytics, machine learning, artificial intelligence, and the Internet of Things (IoT). The interconnected network of digital entities, which includes investors, startups, entrepreneurs, accelerators, and digital platforms, is referred to as the Digital Entrepreneurship Ecosystem. It stands for the cooperative atmosphere that fosters the growth of digital enterprise. Digital entrepreneurship is propelled by foundational technologies known as technological enablers. They enable business owners to spot fresh opportunities, develop original solutions, and upend established markets. Blockchain, IoT, AI, and data analytics are a few examples. Rethinking conventional company structures and developing fresh value propositions made possible by digital technologies are key components of digital entrepreneurship. The field of digital entrepreneurship is significantly impacted by the Fourth Industrial Revolution. It changes the entrepreneurial landscape and has an impact on the strategies and techniques used by digital entrepreneurs. It offers both opportunities and problems. Flexible and adaptive, successful digital entrepreneurs can navigate uncertainty and take advantage of new opportunities. Resilience and adaptability are critical in the face of disruptive technological breakthroughs and outside shocks like the COVID-19 pandemic.

4.3 To understand the digital transformation (Fourth Industrial Revolution) impacts on digital entrepreneurship

“The Fourth Industrial Revolution refers to the technological transformation society is undergoing in the 21st Century” ([29], p. 3). According to Kodama [6], There are more than just cutting-edge, networked devices and systems involved in the Fourth Industrial Revolution. Its scope is much wider. According to Budd et al. [33] and Moavenzadeh [28], compared to earlier industrial revolutions in human history, the Fourth Industrial Revolution is a notable divergence. The convergence of several disruptive technologies, such as biotechnology, improved materials, robots, artificial intelligence, and the Internet of Things (IoT), is what distinguishes it. The distinctions between the digital, biological, and physical realms are becoming increasingly hazy due to the rapid advancement of these technologies and their interconnectivity across several domains. It has been found that digital entrepreneurs have been able to leverage the latest technologies to create new businesses and industries. This is an advantage to digital entrepreneurs. Opportunities for digital entrepreneurship abound in the Fourth Industrial Revolution, characterized by the widespread use of digital technologies [5]. According to Budd et al. [33] and Purbasari et al. [21], digital technologies have significantly impacted how businesses are conducted. In particular, digital technologies have allowed businesses to operate much faster and more accurately. This has led to an increase in the number of businesses that can compete in a global market. As a result, digital entrepreneurs have become more prevalent and are playing an essential role in the current economy.

4.4 Study COVID-19 pandemic impacts on digital entrepreneurship in the Fourth Industrial Revolution

In 2020, the COVID-19 virus unleashed a deadly global pandemic that impacted individuals and companies around the globe [2, 21]. Globally, the pandemic’s wide-ranging consequences were felt. According to Hai et al. [2], there were both challenges and benefits of this outbreak to digital businesses. The outbreak significantly affected businesses in many ways, particularly for entrepreneurs. The fourth industrial Revolution, or Industry 4.0, brought about by the development of digital technologies, has altered the nature of the uncertainty that underlies entrepreneurial processes and results as well as the methods for addressing it. The pandemic has changed, forcing businesses to implement or adjust new business models. This has been a challenge to businesses. According to Purbasari et al. [21], the Fourth Industrial Revolution was a key development in the history of capitalism. It led to the development of new technologies and the creation of new businesses. According to Ross and Maynard [29] and Purbasari et al. [21], digital businesses were unaffected because they were already familiar with digital methods of operation and their business model. These authors articulate that because digital businesses were familiar with digital tools, it was not a challenge for them to adapt to the changes.

5. Recommendations for future research

This study looked at the most recent research on digital entrepreneurship, investigated how the Fourth Industrial Revolution’s digital transformation has affected this field, and investigated how the COVID-19 pandemic has affected it. Future studies can examine how digital entrepreneurs can grow their companies and implement digital globalization. The transformation of digital entrepreneurship from Industry 4.0 toward Industry 5.0 could be introduced. Industry 5.0 could represent a shift toward more human-centered automation and the integration of technologies that enhance human creativity, decision-making, and problem-solving within the industrial landscape. It focuses a strong emphasis on human–machine cooperation while also addressing sustainability, moral issues, and the development of human potential in tandem with technology. And lastly, future research could be geared toward primary research since this one was based on secondary research.

Businesses that want to digitize their operations should invest in software, tools, and technology infrastructure. To increase productivity and streamline procedures, this involves implementing automation, artificial intelligence, data analytics, and cloud computing. Digital enterprise requires a strong online presence. To interact with clients and advertise their goods and services, businesses should concentrate on creating a user-friendly website, optimizing it for search engines, and utilizing social media channels.

Given the growing dependence of organizations on digital platforms, cybersecurity needs to be given top priority. Cyberthreats can be avoided by putting robust security measures in place, including as firewalls, encryption, and frequent security audits. This will safeguard sensitive data and consumer information.

6. Conclusion

In summarizing what has been mentioned above, the purpose of this chapter was to gather the most recent research on digital entrepreneurship, as well as a current list of the main ideas and strategies covered in the literature, to study digital entrepreneurship in the Fourth Industrial Revolution and beyond in response to COVID-19. A research roadmap pointing to additional research opportunities for academics working in the field was also suggested based on the results of the comprehensive literature review. An investigation of journal articles, book editions, and other Internet documentation was conducted to conduct an evidence-based literature review on digital entrepreneurship and the Fourth Industrial Revolution. Digital entrepreneurship in the Fourth Industrial Revolution is promising to look beyond. In response to COVID-19, numerous digital technologies are being used. Digital businesses are using digital technologies, which include “blockchain technology, the Internet of Things (IoT), big data analytics, artificial intelligence (AI) that uses deep learning, and next-generation telecommunication networks” ([35], p. 1). Digital entrepreneurship is responsible for managing and controlling a business or enterprise through the use of new digital technologies. The Fourth Industrial Revolution’s technological advances have created opportunities for entrepreneurs and businesses of all sizes. Digital entrepreneurship has benefited from the advancement of technology as they work with it. According to Budd et al. [33] and Purbasari et al. [21], digital technologies have significantly impacted how businesses are conducted. In particular, digital technologies have allowed businesses to operate much faster and more accurately. This has led to an increase in the number of businesses that can compete in a global market. As a result, digital entrepreneurs have become more prevalent and play an important role in the current economy.

Moavenzadeh [28] studied the Fourth Industrial Revolution and its future in the world. September 2015 found that “90% of the news that the general public reads will be produced by computers by 2025, according to 50% of media, entertainment, and information strategy officers. One hundred percent of insurance and asset management officers concur that an insurer’s competitive positioning will depend on real-time sensor data streams by 2020. By 2030, most of our financial architecture will be supported by distributed ledger technology, according to 92% of banking and capital markets strategy officers. Fifty percent of institutional investors and sovereign fund strategy officers agree that by 2025, the majority of financial transactions, as well as management of important documents, will take place on blockchain architecture” ([28], p. 6). This emphasizes how important it is for traditional businesses to adapt to digital businesses in order to keep up with the competition. The future is promising when it comes to digital entrepreneurship in the Fourth Industrial Revolution.