LOW-COST DIGITAL BUSINESS MODELS: A STUDY OF POTENTIAL AND CHALLENGES

Ihsan Mulia Siregar* -  UIN Syekh Ali Hasan Ahmad Addary Padangsidimpuan, Indonesia
Sakila Bahar -  UIN Syekh Ali Hasan Ahmad Addary Padangsidimpuan, Indonesia
Putri Anggraini -  UIN Syekh Ali Hasan Ahmad Addary Padangsidimpuan, Indonesia
Maulana Ali -  UIN Syekh Ali Hasan Ahmad Addary Padangsidimpuan, Indonesia
DOI : 10.24952/profjes.v4i2.17042

Digital transformation has opened up new opportunities in the world of entrepreneurship, especially for individuals who want to start a business with limited capital. This study aims to analyze in depth the opportunities and challenges of low-capital digital businesses in Indonesia. Using a qualitative descriptive approach, the Systematic Literature Review (SLR) method was used to examine various relevant literature, supplemented by interviews with small-scale digital business actors. The research findings indicate that business models such as e-commerce, dropshipping, affiliate marketing, and digital services (graphic design, content writing, etc.) offer high flexibility and operational efficiency without requiring significant physical investment. Digital technology also enables MSMEs to reach a wider market through social media and other online platforms. However, there are several challenges, such as intense market competition, limited digital literacy, obstacles in building consumer trust, and limited capital for business expansion. To overcome these challenges, business operators are required to have an understanding of digital marketing strategies, technological skills, and sustainable innovation. In conclusion, small-scale digital businesses can serve as an inclusive solution to drive economic growth and expand employment opportunities in the digital age.

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