What are the traditional digital business models?
According to Amatka (Pty) Ltd (2016) these are the main business models that have flourished during the digital business model age starting from late 1990’s. All these digital business models can also be found in Africa – with an African flavour.
Traditional Digital Business Models
Source : Amatka (Pty) Ltd 2016
Let’s explore digital business in the African business context. Digital entrepreneurship is leveraged by start up companies and entrepreneurs who have new emergent business models or by established medium to large enterprises which extend their value propositions using their upgraded technology to create new business.
There are various reasons why it is critical to implement digital solutions on the continent. The needs in the African regions differ according to the specific business problems entrepreneurs are solving . The problems range from corruption, lack of infrastructure, no finance and unemployment.
In South Africa, there are fewer startups using digital entrepreneurship as compared to countries such as Kenya, Nigeria and Rwanda where the need for start ups that can overcome infrastructure constraints is more prevalent. Let us discuss why.
Amatka (2016) points out that South Africa, so far is the only African country with significant, and highly competed, B-to-B digital market. So, one will see more digitally innovative corporations in South Africa that develop spin off businesses to gain more market share domestically and in other markets in Africa. Whereas in the other African markets residents have become more entrepreneurial due to the lack of infrastructure enjoyed by traditional businesses, and create start ups to capture opportunities by offering new products/services.
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