Economic growth can be determined through various indicators. Particularly in economics, economic growth may be defined as the increasing capacity of the economy of a country to satisfy the wants of its people. Why is there scarcity? We have limited resources but unlimited needs and wants. A decade ago, it was easier to differentiate needs and wants; today, it is otherwise. Why? Simply because we are moving forward to a digital economy, we are in fact in the epoch of artificial intelligence.
Microeconomics focuses on smaller scales of business operations. Macroeconomics, on the other hand, focuses on bigger operations such as national scope and even international market. When it comes to the environment, the micro refers to the immediate location or sector based on the business operations. In contrast, the macroenvironment focuses on broader factors that can affect a business, such as demographic, ecological, political, economic, socio-cultural, and technological factors. Both of them focus on economic decisions about scarce resources. GDP, GNP, inflation, aggregate demand, and even monetary policy and unemployment, among others, are examples of macroeconomics.
To many, let us just concentrate on microeconomics. Why? This is our chance to see how we, as creative individuals, the startups who can be entrepreneurs or simply professionals, establish a small-scale business organization. The question is how to elevate our operations by entering the digital world, the cyberspace, so more markets may have the chance to avail for bigger target shares.
This paper argues that economic activities are highly dependent on the role of the government and the incentives open to businesses. China’s rapid GDP growth in decades has been impressive, averaging 9.8 percent per year from 1978 to 2007. China is the global hub for manufacturing industries because of cheaper operations when it comes to labor and employment. However, China’s growth trajectory poses a number of serious problems, including environmental destruction, rising inequality, a high degree of exploitation of the migrant labor force, and weak oversight of product safety. China’s economic growth trajectory on its high and growing dependence on exports and also on investment to maintain economic growth can be an impediment for inclusive growth.
The advent of the non-traditional paradigms, especially during the post-COVID-19 pandemic, showcased the growth of the digital economy. Utilizing digital technology, startups or entrepreneurs are connected in the cyberspace. They are connected through online transactions through various sectors and technologies in the internet, mobile technology, big data, and information and communications technology.
The digital economy focuses on the usage of technology, online transactions, and its transformative effect on the usual traditional norms. The COVID-19 pandemic accelerated the digital economy when consumers needed to stay at home, away from the various distractions, resulting in social distancing. Online shopping, telemedicine, and digital entertainment increased significantly. Even during the changing normal, the digital economy prospers and evolves rapidly as it pivots to the new economy and buying behavior.
Some of the most notable methods of the digital economy’s evolution are as follows: (1)the inception of digital trade and e-commerce [Amazon, Alibaba, and eBay]; (2) social media; (3) increased remote work adoption [Zoom, Slack, and Microsoft Teams]; (4) artificial intelligence and automation [virtual assistants, chatbots, and recommendation algorithms]; (6) an omnichannel approach to sales [retailers in online sales and mobile apps]; (7) digital payments and cryptocurrencies [PayPal, Venmo, and mobile wallets]; (8) digital entertainment [Netflix, Spotify, and YouTube]; (9) telemedicine; (10) sharing economy [Uber, ,Airbnb, and TaskRabbit platforms].
The digital economy allows us to understand the value of microeconomics in generating a new business model approach. Startups and entrepreneurs should take advantage of such opportunities that are considered to be game changers. Undoubtedly, it can always be good or bad; it will depend on the navigation of the compass. There is a constant change in the ever-changing technology almost every moment of our existence. Finding ways for all seasons of startups and entrepreneurs is always possible because choices in the non-conventional norms are still inclusive and sustainable. So, why not?
