Startup Business in The Digital Economy: Opportunities Challenges and Competitiveness
Article Sidebar
Main Article Content
Abstract
This academic article aims to: 1) Examine the operational conditions of startup businesses within the highly volatile digital economy context; 2) Explore the opportunities and challenges faced by startup businesses; and 3) Identify the success factors of startup businesses, using a literature review and relevant research methodology. The findings revealed that: 1) Startup businesses increasingly tend to be AI and Big data; 2) Key opportunities supporting business operations include the use of modern technology to reduce costs, borderless online marketing, changing consumer behavior, disruptive innovation, and diverse funding sources; 3) Challenges faced by startups include competition, cyber threats, regulatory compliance costs, volatility in funding sources, and a shortage of highly skilled personnel; and 4) Success factors for enhance competitiveness include innovation, branding, and ecosystem network development. The results of this study provide valuable insights and practical guidelines for enhancing the capabilities of entrepreneurs and stakeholders in management, enabling startups to achieve sustainable growth in the digital economy.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Views and opinions appearing in articles in the Journal of Arts of Management It is the responsibility of the author of the article. and does not constitute the view and responsibility of the editorial team I agree that the article is copyright of the Arts and Management Journal.
References
Adhami, S., Giudici, G., & Martinazzi, S. (2018). Why do businesses go crypto? An empirical analysis of Initial Coin Offerings. Journal of Economics and Business, 100(1), 64-75. https://doi.org/10.1016/j.jeconbus.2018.04.001
Agrawal, A. (2025). Demystifying the modalities of startup ecosystem: Key value-drivers towards new venture sustainability. Sustainable Futures, 10, 101384. https://doi.org/10.1016/j.sftr.2025.101384
Anilkumar, J. Bastray, T., V, B. Malhotra, N., & Basha, M. (2025). Human resource management in startups: Challenges and best practices for Entrepreneurial Growth. Revista Latinoamericana de la Papa, 29(1), 269–281. https://www.papaslatinas.org/index.php/rev-alap/article/view/98/79
Argaw, Y. M., & Liu, Y. (2024). The pathway to startup success: a comprehensive systematic review of critical factors and the future research agenda in developed and emerging markets. Systems, 12(12), 541. https://doi.org/10.3390/systems12120541
Benkert, J.-M., Letina, I., & Liu, S. (2025). Startup acquisitions: Acquihires and talent hoarding. European Economic Review, 178. 105103. https://doi.org/10.1016/j.euroecorev.2025.105103
Beretas, C. P., & Davalas, A. (2024). Bridging AI innovation and cybersecurity: Generative AI’s contribution to NIS2 compliance. International Journal of Regional Development, 11(2), 40-61. https://doi.org/10.5296/ijrd.v11i2.22486
Bigliardi, B., Dolci, V., Filippelli, S., Petroni, A., & Pini, B. (2025). The role of digitalization in startups: A keyword-based literature review. Procedia Computer Science, 253, 2665-2673. https://doi.org/10.1016/j.procs.2025.01.326
Blank, S. (2013). Why the lean start-up changes everything. Harvard Business Review, 91, 63-72.
Calloway, J. (2025). 41 Startup statistic 2026 – Global Numbers & success rates. Limelight Digital Blog. https://www.limelightdigital.co.uk/startup-statistics/
Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). What is disruptive innovation?. Harvard Business Review, 93(12), 44-53.
European Startup Monitor. (2019). Definition of startup and of stage of development (Report). https://europeanstartupmonitor2019.eu/ESM_3.0Color.pdf
ENISA. (2023). ENISA threat Landscape 2023 (Report). European Union Agency for Cybersecurity (ENISA). https://www.enisa.europa.eu/sites/default/files/publications/ENISA%20Threat%20Landscape%202023.pdf
Feng, L., Qin, G., Wang, J., & Zhang, K. (2022). Disruptive innovation path of start-ups in the digital context: The perspective of dynamic capabilities. Article Sustainability. https://www.mdpi.com/2071-1050/14/19/12839?utm_source=chatgpt.com
Fred, T. (2025). Cybersecurity risk management frameworks for startups in emerging economies. https://www.researchgate.net/publication/391275048_Cybersecurity_Risk_Management_Frameworks_for_Startups_in_Emerging_Economies
Hellmann, T., & Thiele, V. (2019). Fostering entrepreneurship: Promoting angel investing. Journal of Financial Economics, 132(1), 96–113. https://doi.org/10.1287/mnsc.2018.3074
Ibotta Performance Network (2025). What’s driving consumer loyalty? Recourse hup. https://shorturl.asia/S25vZ
Kotler, P., Kartajaya, H., & Setiawan, I. (2017). Marketing 4.0: Moving from traditional to digital. John Wiley and Sons.
Lazopoulos, G. (2025). Navigating Startup Financing Challenges: Impact on Economic Growth and Job Creation[Doctoral dissertation of Business Administration, Golden Gate University]. DOI: 10.13140/RG.2.2.15285.38888
Kumar, N. (2026). Startup Statistics 2026. Demandsage. https://www.demandsage.com/startup-statistics/
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80, 69-96. https://doi.org/10.1509/jm.15.0420
Lindskov, A. (2022). Hypercompetition: A review and agenda for future research. Competitiveness Review, 32(3), 391-427. https://doi.org/10.1108/CR-06-2021-0097
Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., & Ghalsasi, A. (2011). Cloud computing — The business perspective. Decision Support Systems, 51(1), 176–189.
McCarthy, D., Fader, P., & Hardie, B. (2017). Customer-base analysis in a subscription business. Journal of Marketing Science, 36(6), 827–844.
McKinsey & Company. (2020, March 2). Modern marketing: What it is, what it isn’t, and how to do it. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/modern-marketing-what-it-is-what-it-isnt-and-how-to-do-it
Mingione, M., & Abratt, R. (2020). Building a corporate brand in the digital age: imperatives for transforming born-digital startups into successful corporate brands. Journal of Marketing Management, 36(11–12), 981–1008. https://doi.org/10.1080/0267257X.2020.1750453
Mollick, E. (2014) The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29, 1-16. https://doi.org/10.1016/j.jbusvent.2013.06.005
OECD. (2023). OECD Handbook on Compiling Digital Supply and Use Tables. Report. https://www.oecd.org/en/publications/oecd-handbook-on-compiling-digital-supply-and-use-tables_11a0db02-en/full-report/component-4.html?utm_source=chatgpt.com
Pekevski, S. (2025). What is a startup?. Management Studies, 13(2), 68-78. DOI:10.17265/2328-2185/2025.02.002
Rana, V., Amrites, S., Tyagi, S., & Beniwal, T. (2025). Breaking Down the Financial Challenges of Startups: A Comprehensive Study of Failures. ResearchGate 1-35. DOI: 10.20944/preprints202505.1576.v1
Rana, S., Amritesh, S., Tyagi, S., & Beniwal, T. (2025). Breaking down the financial challenges of startups: A comprehensive study of failures. preprints. https://doi.org/10.20944/preprints202505.1576.v1
Ries, E. (2011). The lean startup: How today’s entrepreneurs use continuous innovation to create radically successful businesses. Portfolio Penguin.
Rinthaisong, I., & Duangtong, P. (2024). The dynamic capability, innovation, competitive advantage, and survival of tech startups. HighTech and Innovation Journal, 5(4), 977-994. https://doi.org/10.28991/HIJ-2024-05-04-08
Rismayadi, B. (2024). Human resource management practices in startup companies: Challenges and opportunities. Lead Journal of Economy and Administration, 2(4), 176-182. https://doi.org/10.56403/lejea.v2i4.184
Skawińska, E., & Zalewski, R. I. (2020). Success factors of startups in the EU—A comparative study. Sustainability, 12(19), 8200. https://doi.org/10.3390/su12198200
Slamet, A. G., Achaddiah, B. N., & Yuni T, V. (2024). Building resilient start-up ecosystems in the digital era: A narrative review. Novatio: Journal of Management Technology and Innovation, 2(3), 160-173. https://doi.org/10.61978/novatio.v2i3.1003
Smirnova, Y., & Morales, T. V. (2025). Tech startups and general data protection regulation: an empirical exploration of compliance challenges. Journal of Small Business and Enterprise Development, 32(8), 54-82. https://doi.org/10.1108/JSBED-09-2024-0495
Spigel, B. (2017). The relational organization of entrepreneurial ecosystems. Entrepreneurship Theory and Practice, 41(1), 49-72. https://doi.org/10.1111/etap.1216
Stam, E., & van de Ven, A. (2021). Entrepreneurial ecosystem elements. Small Business Economics, 56, 809-832. https://doi.org/10.1007/s11187-019-00270-6
Susilo, D. (2020). Scalable Start-up Entrepreneurship and Local Economic Development in Emerging Economies, Applied Economics Journal, 27(2), 145-163.
Tzuo, T., & Weisert, G. (2018). Subscribed: Why the subscription model will be your company's future—and what to do about it. Portfolio. https://www.gsb.stanford.edu/alumni/news/books/subscribed
The Global Startup Ecosystem Report. (2025). Startup Genome. https://startupgenome.com/contents/report/gser-2025_4786.pdf
UN Trade and Development. (2025). Global foreign direct investment falls for the second consecutive year, posing acute challenges to developing countries. UNCTAD. https://unctad.org/news/global-foreign-direct-investment-falls-second-consecutive-year-posing-acute-challenges
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28, 118-144. https://doi.org/10.1016/j.jsis.2019.01.003
Wadhwani, K. (2025). Startup ecosystems and legal agility: Regulatory challenges for scaling new ventures. Journal of Information Systems Engineering and Management, 10(39s), 497-509. https://doi.org/10.52783/jisem.v10i39s.7189
Wagner, S. M. (2021). Startups in the supply chain ecosystem: An organizing framework and research opportunities. International Journal of Physical Distribution & Logistics Management, 51(10), 1130-1137. https://doi.org/10.1108/IJPDLM-02-2021-0055
