From the internet to generative AI (GenAI), technology has long played a key role in entrepreneurship. In this episode of INSEAD Explains Entrepreneurship, Chengyi Lin, Affiliate Professor of Strategy, explores how the digital transformation of the economy is opening up countless opportunities for start-ups. 

Cutting-edge technologies including machine learning, blockchain and GenAI have catalysed many entrepreneurial ventures in recent decades. According to Lin, the abundance and accessibility of such digital technologies has democratised entrepreneurship. 

“A lot of individual entrepreneurs can easily start a company in their backyard,” he said. “They have access to new tools to really build their business in a very fast fashion… and that accessibility and democratisation is absolutely critical to this vibrant ecosystem.”

Start-ups also play a critical role in partnering with existing businesses so that both entities can take full advantage of today’s digital technologies. “It’s very important, for both business and society in general, for entrepreneurs to play the role of innovating,” Lin said. 

He added that entrepreneurs generally have a higher risk appetite, which allows them to position themselves at the forefront of innovation. Meanwhile, established firms have the necessary tools and resources to jump in at a later stage and help start-ups scale their inventions.

However, Lin cautions that given the crowded landscape, it’s vital for start-ups to find their niche and define the unique value proposition they provide to customers, and determine whether going the B2B or B2C route makes the most sense for them. The ability to pivot and remain agile is also crucial in a constantly evolving technology and business landscape, and can help entrepreneurs gain and retain a competitive advantage.