Don Bosco Catholic High school
ICT ASSIGNMENT
Group members:
1. Abenezer alemu (1)
2. Arsemawit dereje (7)
3. Elshaday Getachew (19)
4. Elshaday Negash (20)
5. emmanuel mulugeta (21)
6. Hallelujah Habtamu (24)
7. Hawi tadesse (27)
8. Kibur engdawork (32)
Submission date: 11/31/2024
Submitted to: teacher sintayehu
IT AND ITS RELATIONSHIP WITH
ENTREPRENEURSHIP
Introduction
Based on the given questions as an assignment, the group has
chosen an
application to use an example and answer them. Through the
generations
IT has had a remarkable impact on the daily life of people.
People’s social,
economic and political life has changed a lot because of the
emergence of
IT. Specifically, IT plays a great role in entrepreneurship. How it
has changed
entrepreneurship, the challenges of running businesses being
based on it
and its future will be described for this assignment.
How has IT changed traditional entrepreneurship?
IT has had several impacts on the traditional entrepreneurship
system
through the past few generations. Several features that IT
introduced play
a great role in the market system. Here are some of the features:
Digital marketing – transformed the traditional marketing
system to
a more advanced way of marketing through advertisements on
digital
platforms and social media.
Automation – has its own positive impact because of the fact
that it
helps reducing the human power needed for manual services like
customer
support and purchases by giving the job to systems.
Information – Entrepreneurs can be benefited from IT which
makes it
easier to access information for their market research. IT provides
several
sources to gain information in many sectors including
entrepreneurship.
Let’s look at a specific business we have chosen, that is linked
with IT.
The business’ name is “Robinhood”. It is based on a trading
application launched in 2012 with a mission to democratize
finance. At that time, not all people who wanted to invest in the
stock market actually did. Robinhood is a commission free trading
app that opens the doors to people who couldn’t get the chance
to trade stocks in the traditional trading markets. The essential
part of its market growth started to emerge in 2020 pandemic,
where the usage of mobile applications increased by 40%. It had
features like attracting notifications, free stock rewards, daily
missions and the most effective feature which is its simple and
attention taking design which makes it more preferable than
other trading apps. It avoids the feeling of overwhelm from the
users with its easy-to-understand interface. It attracted millions of
users and approved the loyalty of 22 million active users at its
peak. Robinhood has faced scrutiny and criticism, particularly
during events like the GameStop short squeeze in early 2021. The
app temporarily restricted trading on certain stocks, leading to
accusations of market manipulation and concerns about user
protection. Although we it is a great example to show the
transformation of trade through the past decades.
The simple design of Robinhood as shown in the pictures below
The transformation of traditional trading through time
The historical background of trading starts from 2260 B.C
when Sumerian people in Mesopotamia first exercised it with
different agricultural and mineral products. They even started
long-distance trade with the Harappan people of the Indus valley.
Since then, trading of different goods was practiced and being
developed through time.
The time when “Modern trading” started in relation with the
past is between 16th – 18thcentury AD. The most influencing factor
was Adam Smith’s inquiry on the structure of markets in the
1770s. Then, between the late 1700s and early 1800s, stock
market began to become known and practiced.
Traditional stock market had a more complex structure than the
modern ones. It required the manual research of information and
link with the company that issued stocks for sale, brokers and
strong engagement to the market. In the beginning of the 2000s,
IT started growing remarkably, bringing together platforms that
could simplify the works of human beings. The new trading
system emerged as a new computer-based, automatic and digital
form of the past process. Information about the stock sellers can
be obtained much easier, stocks can be both sold and purchased
online and the need for brokers and information providers was
minimized with the help of IT.
Robinhood attracted and engaged many parts of the society with
its interactive and simple GUI, which is also made possible with
the help of IT.
People who got aligned in the networks, started to get benefited
from the commission free transactions provided by the app.
Traditional trade Modern day’s
trade
-Requires a physical marketplace -Can be performed
virtually
-Hard to find full information about -Information can be
found on
the products on sale different sources
online
-Challenge to access the market -Market is available
for anyone
(due to location or disability to join
the market)
-Shortage of products may happen -Products can be
found on vast
physical and online
markets.
Differences between physical stock trade and online stock trade
on Robinhood
Physical stock trade Robinhood
stock trade
-needs a broker and asks -the app itself acts as
a broker
for commission and doesn’t ask for
commission
-the buyers have to gain -information about
the stock is
information about the stock stated in the
application in
providers directly or else word and graphical
forms
they wouldn’t have full which are easy to
access
knowledge about the stock
they are buying
-it requires a strong effort -the only thing needed
to start
from both the buyers and transactions is signing
in
sellers to continue on the to the app and deposit
capitals
transaction due to the compexity
of the process
The advantages and challenges of running an
IT-based business
Launching an IT-based business in this generation has numerous
advantages. Relating it with Robinhood, starting from the start-up
funding, the application was not that much costly to launch
because of being virtual.It connects vast societies together in a
single platform. It doesn’t need a real-life physical market. It gives
support online, users don’t have to directly contact the support
team.
Advantages as an entrepreneur:
-More users can be attracted online
-More space to advertise business on applications many people
use
-Makes the job easier
-Gives flexibility for the entrepreneurs
Disadvantages:
-Entrepreneurs can’t use their negotiation skills due to the border
caused by virtualization.
-The market is uncontrollable
-The system might fail or get attacked
-Less secure
How we see the future of IT in entrepreneurship:
In the future, we expect the real life market will all be based on IT
and digital markets will develop more keeping up on their
progress that has started in the recent years. Many systems are
predicted to be automated by different types of innovations. The
jobs of human would be substituted by Computers as it has been
observed even in the present days. People’s effort to live while
working on their own with all their efforts, will get diminished in a
large amount. So, the number of producers and workers will
decrease as the number of consumers will highly increase.
Entrepreneurs, at that time, will have to come up with ideas on
how to engage those customers to their products through the
devices they use daily. With the help of AI, IT-based
entrepreneurs will be largely benefited.
Conclusion on IT Entrepreneurship
-IT entrepreneurship has transformed the business landscape by
leveraging technology to create innovative solutions and disrupts
traditional markets. Entrepreneurs in the field often focus on
scalability, agility, and customer-centric approaches, enabling
them to respond quickly to market demands. The rise of digital
platforms has democratized access to resources, allowing
startups to flourish with lower initial investments. Moreover, the
continuous evolution of technology fosters a culture of innovation,
encouraging entrepreneurs to explore new ideas and business
models.
In summary, IT entrepreneurship exemplified by companies likr
Rooinhood showcases the potential of technology to democratize
finance and create new market opportunities while also
highlighting the challenges and responsibilities that come with
such innovations.
Contributions of members
Researchers and app deciders – Kibur Engdawork and
Emmanuel Mulugeta
Word and power point designers – Elshaday Negash,
Elshaday Getachew
and Abenezer Alemu
Document editors and information providers –
Hallelujah Habtamu, Arsemawit Dereje and Hawi
Taddesse
Group Work controllers – Elshaday negash and
Hallelujah Habtamu
