Benefits of Building a Startup in the Era of Digitalization

Lukyana and Novia Aldina

Universitas 17 Agustus 1945 Jakarta, Jl. Sunter Permai Raya, North Jakarta, Indonesia

Keywords: Start-up, Digitalization, NVivo.

Abstract: This research aims to obtain concepts and information about the benefits gained from building a start-up in

the digital era. The sources of this research are online news, articles, and YouTube. This research was

conducted over the last three years, from 2021 to 2023. Data sources were selected based on the credibility

and suitability of the data for the problems studied. Data processing uses Nvivo 12 Plus software. There are

4 stages in the process of data processing: data input, coding, visualization, and conclusion determination.

The research findings showed 5 advantages of Start-ups in the Digital Era. Firstly, they have a broad market

share and do not lag behind others. Secondly, there is no need to determine a good or strategic location.

Thirdly, they have a mastery of digital technology. Fourthly, the cost of capital is lower. Fifth, it can change

people's mindsets so that it can reduce unemployment. This research can be used by other researchers who

require information on the concepts and benefits of developing Start-ups. The results of this research can be

used by Start-up businesspeople, if they wish to build a Start-up in the era of digitization.

1 INTRODUCTION

The key to Start-up is the ability to grow. Start-ups

are companies designed to grow quickly. Start-ups

focus on growth that is not limited by geography,

which differentiates them from small companies and

small businesses. The Internet is one of the factors

responsible for the rapid growth of Start-ups.

According to Alves, the Internet has become a

"necessity" today. The Internet brings revolutionary

changes and creates a new environment that marks a

time of social transition.

The digital industry has provided many

opportunities for businesses. The burgeoning number

of StartUps in Indonesia indicates that this sector is

very promising. In fact, the development of Start-ups

in Indonesia is now continuing to achieve positive

performance that can boost the national digital

economy.

In this regard, Indonesia has succeeded in entering

the ranks of countries that have the most start-ups in

the world. As of March 22, 2023, 2,502 start-ups were

found in the country, and this placed Indonesia in 6th

position globally, according to the Start-up Ranking

report.

Indonesia is among the countries with the highest

number of Start-ups in the world. According to Start-

up Ranking data as of 14th June 2023, there are 2,482

Start-ups in the country. This number places

Indonesia in sixth place in the world, beating

Germany and France. The United States occupies the

top position with the largest number of Start-ups in

the world. There are 74,827 Start-ups in Uncle Sam's

country. India ranks second in the country with the

largest number of start-ups in the world, namely

15,367 startups. Then, England is in third place with

a total of 6,826 startups. Furthermore, Canada is in

fourth place with the number of startups of 3,704

startups. Fifth place is occupied by Australia which

has a total of 2,634 startups. On the other hand, Brazil

is ranked 10th in the ranks of countries with the

largest number of startups currently. The number is

1,178 start-ups (Annur, 2023). With the increasing

presence of start-ups in the country, Coordinating

Minister for the Economy Airlangga Hartanto stated

that the potential for Indonesia's digital economy is

very significant. This is demonstrated by Indonesia's

success in becoming a major digital player in the

Southeast Asian region.

Digital start-ups that are emerging today offer a

variety of products and services. These benefits

should be enjoyed by the younger generation, who

bring many ideas and creativity to their field. Another

aspect is the product. In today's digital world, various

types of start-ups are emerging amidst intense

competition. Product ideas and creativity must attract

350

Lukiyana, . and Aldina, N.

Beneﬁts of Building a Startup in the Era of Digitalization.

DOI: 10.5220/0012582100003821

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 4th International Seminar and Call for Paper (ISCP UTA ’45 JAKARTA 2023), pages 350-355

ISBN: 978-989-758-691-0; ISSN: 2828-853X

consumers who expect convenience and fast service.

This technology is developing very rapidly. In this

case, there is sufficient investment to support

business processes.

In the era of information technology, start-up

companies are increasingly emerging. A start-up is a

new venture initiated by an organization founded by

a founder who focuses on high growth, with risk or

reward, and measurable market leadership potential.

Start-ups typically focus on ideas, creativity,

innovation, and the development of new products or

services. These factors are considered when forming

a company. Start-ups are closely related to

organization and management, particularly in terms

of leading people and organizations. Information

technology (IT) is often crucial for the continuity of

start-up businesses (Tanjung et al., 2021).

This paper examines different problems from

previous research and aims to provide a symmetrical

concept for building a start-up in the digital era. This

research conducts a coding process from various

sources, combines the codes into one visualization

model, and draws conclusions using the principle of

triangulation. The paper examines various issues

from previous research and aims to provide a

symmetrical concept for building a startup in the

digital era. The research involves a coding process

from various sources, which is then combined into

one visualization model. Conclusions are drawn using

the principle of triangulation.

The aim of this research is to explore the potential

benefits of building a start-up in the digital era. The

concept will be presented in detail to provide

professionals and candidates with a clear

understanding of the benefits that can be obtained.

The research was conducted to formulate this concept

and provide information for candidates interested in

building a start-up.

The results of this research can benefit

professionals and prospective entrepreneurs in the

future. They can prepare themselves by strengthening

their potential according to the candidate's needs. The

information resulting from this research can serve as

a basis for preparing standardized competency

standards. Educational institutions and universities

can also use this information to benefit students and

the community. The information is designed to help

prospective entrepreneurs develop their potential.

This is particularly important as the world moves

towards a digital era in various sectors, including

start-ups, which are experiencing rapid changes.

2 LITERATUR REVIEW

Benefits are a form of indirect compensation that

provides a sense of security to employees and their

families. They are given to employees in the form of

plans, such as health insurance and benefit packages,

in addition to their basic salary. According to Mondy

and Noe (2014), benefits are provided to improve

employee welfare based on company policy.

Hasibuan (2017) defines providing benefits as

offering additional compensation, whether financial

or non-financial, to all employees based on company

policy to improve their welfare (Wening & Purnomo,

2019).

Start-up refers to the implementation of a business

plan, where all planned and projected aspects are

realized. Although often interpreted as a new business

venture (Mulyani et al., 2023), start-ups are

characterized by their flexibility in various aspects

such as employees, infrastructure, products, and

services. It is important to note that start-ups should

adhere to conventional academic structures and

maintain a formal register, avoiding biased or

emotional language, colloquial words, and informal

expressions. Additionally, precise word choice,

grammatical correctness, and adherence to formatting

guidelines are crucial.

Start-ups do not immediately generate large

profits at the beginning, unlike conventional

companies that may even turn a profit upon

establishment. This is because start-ups require initial

investment to develop their business. Start-ups often

seek funding from external sources to survive and

grow. Additionally, start-ups are closely associated

with technology. Some start-up companies have the

ability to turn technology into products and services

offered to consumers (Ditamei, 2022).

Competence comprises five characteristics: skills,

including the ability to plan, thoroughness,

leadership, and collaboration; intellectual, emotional,

and social intelligence; accurate planning, leading,

and collaborating in groups. Secondly, motivation is

the driving force behind a person's actions. Motives

direct and influence behaviour towards certain goals

or actions and away from others. For instance, an

individual with achievement motivation consistently

sets challenging goals for themselves, takes full

responsibility for achieving them, and expects

feedback to improve their performance. Third, traits

refer to characteristics that influence how people

behave or respond to certain situations, such as self-

confidence, self-control, fortitude, or endurance.

Fourth, attitudes are the values and beliefs that a

person holds. These can be measured through tests to

Beneﬁts of Building a Startup in the Era of Digitalization

351

determine a person's values and interests. Fifth,

knowledge refers to the information that a person

possesses in a particular field. It is a complex

competency. Knowledge tests assess a participant's

ability to select the most appropriate answer, but they

do not indicate whether the individual can perform

the job based on their knowledge. A high-quality

literature review should not only summarize previous

relevant research but also critically evaluate,

reorganize, and synthesize the work of others (Leedy

& Ormrod, 2005, p. 84).

3 METHODS

This research employs qualitative research methods

through a systematic literature review approach. The

literature reviewed is not limited to research articles

but also includes credible sources obtained online,

such as YouTube, online news, and social media. The

data is searched using relevant keywords that match

the research question. It is important to ensure that all

data sources are credible. The reason for using this

data is its easy accessibility and availability on the

internet (Hafidhah & Yandari, 2021). The selected

data sample includes information published between

2021 and 2023. Data processing was conducted using

NVivo 12 Plus software, which was chosen for its

ability to produce coding visualization images and

user-friendly interface (Tambun & Sitorus, 2023).

The data processing process with NVivo involves

four stages: data input, coding, visualization, and

conclusion (Sitorus & Tambun, 2023). The first stage,

data input, can be carried out using either internal or

external methods. Internal data refers to data that is

already available on the laptop, such as research

articles, and is inputted into NVivo without using an

internet connection. Meanwhile, external data refers

to data that is imported into NVivo through an

internet connection. The data import process utilises

the NCapture for NVivo feature. Examples of

external data include YouTube videos, online news

articles, and various social media platforms. The

second stage involves coding the data based on the

research question. Coding involves using simple

words or sentences as answers to the research

questions. During this stage, the research data

undergoes content analysis, which involves

understanding the words or sentences used (Tambun,

2021). For YouTube or social media videos, coding

is done after transcribing the content. The analysis

involves creating transcripts and then carrying out the

coding process (Salahudin et al., 2020). The third

stage involves creating a visualization image of the

coding. Visualization coding is a collection of code

that creates an image. Coding images are linked to

various data sources and are analyzed to draw

research conclusions. The fourth stage involves

determining research conclusions, which are the

answers to research questions. These answers can be

found in the existing coding. The validity of the code

is considered strong if it is confirmed by various data

sources. Coding validity is considered strong if it is

confirmed at least three times from various data

sources. This principle measures coding validity

using the triangulation method (Natow, 2020). The

coding is then sorted based on the number of

confirmations, with the coding that has the most

confirmations being prioritised. These codings are

used as answers to research questions and as research

conclusions.

4 RESULTS AND DISCUSSION

The research yielded a total of 10 sources, including

4 articles, 4 online news articles, and 2 YouTube

videos. The coding process was conducted using

Nvivo 12 Plus Software. Five valid codes were

identified from the data source, each confirmed at

least three times. The resulting coding is presented in

the visualization below.

Figure 1: Visualisasi Codings.

The coding in Figure 1 is a result of research

questions. The coding results from the content

analysis of the various data being studied. The coding

process utilizes the facilities in Nvivo 12 Plus

software. The table below summarizes the identity of

each coding created.

ISCP UTA ’45 JAKARTA 2023 - THE INTERNATIONAL SEMINAR AND CALL FOR PAPER (ISCP) UTA ’45 JAKARTA

352

Table 1: Coding Recapitulation.

o. Codin

Intensit

Reference

1 Has a wide market so it is not

left behind by E-Commerce

● (Purwatiningsih, 2021)

● (Ginting, 2021)

● (Abdillah, 2021)

2 Doesn't require a strategic

location

● (Ginting, 2021)

● (Abdillah, 2021)

● (CNN, 2020)

3 Understand and master digital

technology

● (Sartono, 2021)

● (CNBC, 2023)

● (Okk

Ferdians

ah & Permana, 2022)

4 Has a lower cost of capital 3

● (Rifai, 2021)

● (Abdillah, 2021)

● (Gintin

, 2021)

5 Changing People's Mindset and

Reducing Unemployment

● (Ermawati et al., 2022)

● (Ginting, 2021)

● (Wisnu, 2023)

1. Has a Wide Market So That It Is Not

Left Behind by E-Commerce

Start-up has a large market because Start-up itself is

a unicorn, so it can be said to have many

communities. Therefore, they can balance their

position with e-commerce. Digital campaigns are

carried out technologically to achieve wide media

reach. Start-ups also have a competitive advantage

over e-commerce as more and more e-commerce

retailers emerge. In the world of digital marketing,

including online stores and new markets, mastering

big data and complete infrastructure is essential for

competition. Sales techniques, both online and

offline, are highly competitive (Purwatiningsih,

2021). Effective ways to create added value and

expand market reach include partnerships or

collaborations with other companies. Start-ups can

increase their revenue and customer base by forming

partnerships. Collaborating with reputable companies

can enhance customers' trust in Start-ups (Wisnu,

2023).

2. Does Not Require a Strategic

Location

Technological advances have enabled entrepreneurs

to develop their businesses in a competitive

environment. In the current start-up landscape,

strategic locations are no longer a necessity. The most

important factor in the start-up process is to utilize the

internet as a basis for making maximum use of

technology. By doing so, start-ups can avoid the need

to rent or spend a lot of money on space, which can

greatly affect their progress. Therefore, with today's

technological advances, location is no longer a

primary concern.

3. Understanding and Mastering

Digital Technology

The advancement of technology and the internet has

brought about changes in various aspects, including

the way society communicates. While traditional

communication and interaction were primarily face-

to-face, nowadays, various online applications have

made it possible to communicate remotely (Febrian et

al., 2021). Start-ups, in particular, tend to have a close

relationship with technology due to its strong

potential for development. One of the biggest

obstacles is the problem of an unsupported network.

To mitigate this risk, it is important to connect with

like-minded entrepreneurs and collaborate.

Increasingly, people are turning to the digital

environment for income and employment

opportunities, particularly as traditional sectors are

impacted by the coronavirus pandemic (Sartono,

2021).

4. Has Lower Cost of Capital

Start-ups typically have lower overhead costs than

traditional businesses, which can result in lower

prices for consumers, making products and services

more accessible. In general, start-ups can have a

positive impact on society by providing innovative

solutions to problems, creating jobs, improving the

economy, encouraging innovation, and reducing costs

(Rifai, 2021). They leverage digital technology to

automate business processes and reduce dependence

Beneﬁts of Building a Startup in the Era of Digitalization

353

on expensive physical infrastructure. Similar to

utilising a cloud computing platform, Start-up Digital

can decrease expenses related to data storage and has

the ability to scale in a flexible manner.

5. Changing People's Mindset and

Reducing Unemployment

In the digital era, the internet has made it possible for

anyone to start their own business. Technological

advancements have made business operations more

efficient and convenient, as most processes can now

be conducted online without incurring significant

costs. Establishing a start-up in the digital era offers

numerous benefits, including cost reduction, location

independence, and the potential to improve people's

quality of life by solving complex daily problems.

Start-ups are emerging in various categories, such as

web-based businesses, financial technology, health

technology, agritech, educational technology, and

more. For instance, online start-ups offer a platform

for micro, small, and medium enterprises (MSMEs)

to market their products, enabling them to expand

more rapidly (Zulianti & Aslam, 2022; Ermawati et

al., 2022).

5 CONCLUSIONS

The research results answer the questions posed in the

title. Building a start-up in the digital era has five

advantages that can impact those involved in the start-

up. The research findings suggest that successful

start-ups in the digital era require a wide market

reach, proficiency in digital technology, lower capital

costs, and a shift in mindset towards

entrepreneurship. It is important to avoid relying on a

strategic location. The research findings suggest that

successful start-ups in the digital era require a wide

market reach, proficiency in digital technology, lower

capital costs, and a shift in mindset towards

entrepreneurship. The research findings suggest that

successful start-ups in the digital era require a wide

market reach, proficiency in digital technology, lower

capital costs, and a shift in mindset towards

entrepreneurship. The language used in the text has

been revised to ensure objectivity, clarity, and

precision. The text has been structured logically with

causal connections between statements. The

grammar, spelling, and punctuation have been

corrected. The text adheres to academic conventions

and style guides. No additional aspects have been

added to the content. This research provides evidence

that many business processes are carried out digitally

over long distances. Based on this research, it is

recommended that further research be conducted on

the benefits of digital start-ups for those interested in

opening a digital-based business.

REFERENCES

Abdillah, IM (2021). Benefits of Building a Start Up . 2021.

https://se.ittelkom-pwt.ac.id/2021/10/31/keuntungan-

membangun-start-up/%0A

Annur, CM (2023). Indonesia is among the countries with

the most startups in the world, how many? Databoks ,

2023.

https://databoks.katadata.co.id/datapublish/2023/06/14

/indonesia-besar-negara-dengan-startup-terbesar-

dunia-berapa-nomornya#:~:text=According to Startup

Ranking data per world %2C beats Germany and

France

CNBC, I. (2023). Making Startup Business Even Brighter

in 2023 CNBC INDONESIA

https://www.youtube.com/watch?v=8JWfFhPacaE .

https://www.youtube.com/watch?v=8JWfFhPacaE

CNN, I. (2020). Competition Between Startups Applying

Digital Systems CNN INDONESIA

https://www.youtube.com/watch?v=cnTXhgj1u80 .

https://www.youtube.com/watch?v=8JWfFhPacaE

Ditamei, S. (2022). What does startup mean ? These are the

characteristics, examples and differences between

companies. Finance.Datik.Com , 20 (2011).

https://finance.detik.com/ Solusiukm/d-

6351790/startup-artinya-apa-ini-ciri-cepat-dan-

bedanya-dengan-kerja

Ermawati, S., Lestari, P., & Siliwangi, U. (2022). The

influence of startups as digitalization for the creative

economy in Indonesia . 2 (5), 221–228.

https://transpublika.co.id/ojs/index.php/Transeconomi

ca/article/view/186/147

Febrian, A., Lina, LF, Safitri, VAD, & Mulyanto, A.

(2021). Digital marketing by utilizing landing pages for

start-up companies. Journal of Community Service

Innovation Results (JIPEMAS) , 4 (3), 313.

https://doi.org/10.33474/jipemas.v4i3.10103

Ginting, J. (2021). 5 advantages of starting a start-up

business .

Hafidhah, H., & Yandari, AD (2021). Training on Writing

Systematic Literature Reviews with Nvivo 12 Plus.

Madaniya , 2 (1), 60–69.

https://doi.org/10.53696/27214834.39

Mulyani, S., Pallu, MS, Fikruddin, M., & Kafrawi, M.

(2023). Increasing Student Potential in the Business

World through Startup Training Increasing Student

Potential in the Business World through Startup

Training . 6 (1), 28–37.

http://localhost:8080/xmlui/handle/123456789/5978

Natow, R. S. (2020). The use of triangulation in qualitative

studies employing elite interviews. Qualitative

Research , 20 (2), 160–173.

ISCP UTA ’45 JAKARTA 2023 - THE INTERNATIONAL SEMINAR AND CALL FOR PAPER (ISCP) UTA ’45 JAKARTA

354

https://doi.org/https://doi.org/10.1177/1468794119830

Okky Ferdiansyah, E., & Permana. (2022). ROLE OF

START UP FOR DEVELOPMENT . 7 (2), 151–159.

file:///C:/Users/Khotijah/Documents/Downloads/okky

+jrpe +( 151-159).pdf

Purwatiningsih, SD (2021). Digital Marketing Campaign in

Building StartUps Through Influencers During the

Covid-19 Pandemic . 4 (2), 33–43.

https://d1wqtxts1xzle7.cloudfront.net/73503541/Jurnal

_20Nasional_20Sinta_204_20UPN_20Jakarta_compre

ssed-libre.pdf?1635051983=&response-content-

disposition=inline%3B+filename%3DMARKETING_

DIGITAL_CAMPAIGN_DALAM_MEMBANG.pdf

&Exp ires=1697543653&Signature=TgZkz

Rifai, A. (2021). Benefits of Star Up Companies for Society

. 7030. https://se.ittelkom-

pwt.ac.id/2021/10/31/keuntungan-membangun-start-

up/

Salahudin, S., Nurmandi, A., & Loilatu, MJ (2020). How to

Design Qualitative Research with NVivo 12 Plus for

Local Government Corruption Issues in Indonesia?

Journal of Government Studies .

https://doi.org/10.18196/jgp.113124

Sartono, SFEUT (2021). Digital Entrepreneurship Digital .

8 (2), 105–113.

file:///C:/Users/Khotijah/Documents/Downloads/430-

Article Text-1010-1-10-20220223 (1).pdf

Sitorus, RR, & Tambun, S. (2023). Qualitative research

training in the field of accounting using NVivo software

at the accounting master's study program at Ganesha

University of Education. Scholar's Space: Journal of

Community Service , 2 (1), 13–21.

Tambun, S. (2021). Increasing the Ability to Conduct

Qualitative Research Using NVivo 12 PLus Software at

the LAN Center for Training and Development and

Studies on Decentralization and Regional Autonomy in

Samarinda. Journal of Archipelago Empowerment , 1

(2), 1–9.

Tambun, S., & Sitorus, RR (2023). NVivo Application

Training for Qualitative Research in Accounting for

Researchers at Dhyana Pura University. Joong-Ki:

Journal of Community Service , 2 (1), 129–138.

https://doi.org/https://doi.org/10.56799/joongki.v2i1.1

298

Tanjung, DF, Oktaviana, A., & Widodo, AP (2021). Startup

Risk Management Analysis during the COVID-19

Pandemic Using COBIT® 2019. Journal of

Information Technology and Computer Science , 8 (3),

635. https://doi.org/10.25126/jtiik.2021834914

Wening, N., & Purnomo, G. (2019). Analysis of Benefit

Provision, Motivation, and Organizational

Commitment of State Civil Apparatus (ASN). Journal

of Management Research, Widya Wiwaha College of

Economics, Master of Management Program , 6 (1),

17–26. https://doi.org/10.32477/jrm.v6i1.332

Vishnu. (2023). How do Investors Get Profits from

Startups? https://myrobin.id/untuk-bisnis/how-

investor-menerima-keuntungan-dari-investasi-di-

usaha-startup/#:~:text=One of the main ways to share

the shares he owns in the company.

Beneﬁts of Building a Startup in the Era of Digitalization

355