Exploring the second layer digital divide.
The digital gold rush: glamour, grit, and the cold truth at the margins.
In today’s digital landscape, entrepreneurship often emerges as a solution to the pressing issue of unemployment, particularly among the youth. Beneath this surface of entrepreneurship lies a set of challenges faced by aspiring online business owners. Termed the “second-level digital divide,” this phenomenon extends beyond mere access to technology, to now effectively leveraging digital skills to work or trade and earn a sustainable livelihood.
In this article, we outline and discuss the experiences and complexities of participating in the digital economy, digital hustling if you may. We share this based on our exploration through a digital ethnography study, where we engaged and observed young people who are working, trading, creating and engaging primarily on TikTok. While this is not a conclusive study on what is happening within the digital economy, these initial exploration shapes the way we can think when empowering more youth to get online and building digital platforms that enable economic opportunities for all.
The second digital divide asks that we move beyond access to actual empowerment. A sort of economic or social mobility that is enhanced by participating digitally. We’ve had instances that many young people from developing regions are more likely to be digital consumers than creators. This however is changing, and TikTok is gaining popularity. We would like to understand how and why TikTok is gaining popularity and how it is used. Of note is the recent conversation of TikTok’s CEO with the President Ruto on App moderation to filter out sensitive content and way forward for monetisation.
We found out three key insights
- Access is not equal to Empowerment. While information is more widely accessible than ever, significant structural, social, and educational barriers hinder many individuals from fully utilising this information.
- Bridging the gap: Appeasing the algorithm and remaining authentic. This requires creative planning and timely adaptability.
- Success requires building social capital and remaining adept in the developing cultural nuances. It’s often a dance between keeping up with trends and remaining authentic to one’s mission.
Beyond business as usual.
Prior research (1,2) suggests that entrepreneurship may not be the panacea for unemployment. Why is this assertion made?
Entrepreneurship, while a path to financial independence for some, is not universally applicable due to differing skill sets and social economic inequality. Successful entrepreneurs would typically exhibit traits such as strong business acumen, risk tolerance, and access to capital. Not everyone inherently possesses this entrepreneurial mindset, skill set and privilege to experiment. For instance, access to initial funding resources varies depending on socioeconomic backgrounds. Some struggle when acquiring these skills and in the end their businesses fail. The glamour often associated with entrepreneurship conceals the significant challenges that might come with it. Statistics indicate that an estimated 2.2M businesses failed within the first five years, with over 46% failing within the first year.
Building a sustainable enterprise is a long-term journey. Accurate portrayals should acknowledge that this goes beyond genuine grit, commitment, and resilience demanded for success. For the most part, structural support whether socially or economically go a long way. Sustaining motivation through adversities requires unwavering perseverance and most times supporting structures that enable one to weather this.
Previous research on platform livelihoods emphasizes the significance of a strong “empowerment factor”. This underscores the significance of grit or motivation — to continue despite adversaries — as a distinguishing factor among successful entrepreneurs. However, not everyone enters with equal motivation, and cultural backgrounds can influence perseverance. For instance women may have barriers in access or choice of sectors. Marginalized and entrepreneurs in the rural areas encounter obstacles like limited access to training, while sociocultural contexts can impede engagement.
Entrepreneurship in the digital sphere goes beyond technical skills; it entails relations, adaptability in the ever evolving digital channels. Adaptability is a critical skill, to know when to move on to the next thing when one thing does not work out. Secondly beyond participation is knowing how to monetize their audience. Unfortunately, most global south countries are lagging behind.
Monetizing on social media involves trial and error. Most prevalent in this market is a mesh of hybrid between offline and online methods. Creators often begin with options like sponsorships, affiliate marketing, subscriptions, and advertisements. Maximizing earnings necessitates ongoing testing and optimization. Creators should experiment with various approaches and track metrics. Long-term success requires diversifying revenue streams. Continuous experimentation is key to sustained success. We see that disadvantaged backgrounds have additional obstacles especially in understanding how to tap into the different markets.
So, is entrepreneurship the panacea for unemployment?
No and having a one-size-fits-all approach is exclusive. Therefore focusing solely on entrepreneurship often hurts and neglects those who lack the prerequisites. There should be a stronger call for equitable opportunities require addressing these disparities.
Hence the premise for this research.
From viral content to instant fame, how is the digital economy fairing on TikTok?
We embarked on a 6 months digital ethnography study aimed to uncover the nuances of participation and entrepreneurship within TikTok. This is what we learnt.
Entrepreneurship is a balanced mix of analytical and creative skills. It is not just science or art, but a balanced blend of the two. It’s the intersection of scientific analysis and artistic expression that creates true innovation. Successful entrepreneurs effectively combine analytical skills such as market research and business planning with artistic abilities such as storytelling and design, resulting in more robust and effective business ventures.
It’s a mix of analytics and creative strategies. Keeping up with trends and emerging cultures go a long way.
While TikTok provides insights on how best to win on the app, for instance, getting started or developing a content strategy. However, it’s the cultures new ways of engagement, most often learnt within the app that drive success. The most prosperous entrepreneurs navigate these intricate dynamics adeptly, blending analytics and creativity to create meaningful connections and construct sustainable businesses. This underscores the significance of both formal and informal, unwritten rules in shaping user engagement on TikTok. Showing that most of digital literacy is being attained through observations and engagement with peers.
Three key tensions emerged in this study. They show the persistent digital divide, the growing misconception that mere access leads to success, the challenging journey from hobbyist to seller, and the pivotal role of culture, values, and social capital.
Access vs. Empowerment: It’s not just broadband and device ownership but also affordability and meaningful gains in digital skills
The digital era has ushered in unprecedented access to information. However, achieving meaningful knowledge in the digital age necessitates more than mere access to information; it requires digital literacy, equal participation, social capital, digital inclusion, and an empowering environment.
Digital literacy and the ability to critically navigate online information depend heavily on one’s educational and socioeconomic background. Those from underprivileged backgrounds may lack support networks to help build these capacities. Information overload and the overwhelming array of choices online can deter individuals without guidance to filter and focus. This marginalizes those who could benefit most from increased access to information resources.
In addition, structural issues like the digital divide, content-filtering algorithms, and commercial biases determine what information reaches different groups and how accessible it truly is for all. While the internet has lowered some barriers to information access, persistent obstacles continue to hinder genuine digital empowerment for many individuals and groups.
These challenges underscore a pivotal realization: digital empowerment necessitates more than just the availability of connectivity. It demands the creation of online environments that are not only accessible but also accommodating, along with targeted initiatives for skills development. For individuals ill-prepared to navigate the intricacies of digital spaces, the promise of expanded access can remain elusive, placing a disproportionate burden on these individuals and groups. As a response to these challenges, structured guidance and collaborative learning models have emerged, striving to address the multifaceted obstacles that impede empowerment, even amid the backdrop of increased access points.
One promising approach in this regard is “micro-teaching,” a grassroots, community-driven method for sharing skills and knowledge. By tailoring learning endeavors to the unique needs and linguistic diversity of participants, micro-teaching endeavors seek to dismantle barriers to meaningful participation. While acknowledging the significance of institutional changes, these grassroots networks exemplify the proactive cultivation of empowerment in conjunction with the expansion of access.
Notably, the accessibility of these tutorials and learning initiatives extends beyond older demographics to encompass the youth as well. Some have taken on the role of imparting sought-after skills, not just from the perspective of organizational expertise e.g., digital marketing, but also in terms of equipping individuals for personal success. Concurrently, creators leverage an abundance of paid learning videos or classes, predominantly promoted through livestreams with payment transactions facilitated via MPESA.
Bridging the gap: Appeasing the algorithm and remaining authentic
Transitioning from a hobbyist to an entrepreneur involves a complex and extended process laden with challenges that require meticulous planning and adaptability. Initially, finding guidance and startup capital can prove elusive without an established community for support. However, over time, through trial and error, digital entrepreneurs learn to tap into online resources and leverage connections within their creative circles. Collaboration and engagement with like-minded peers play invaluable roles in facilitating knowledge-sharing, network growth, and alleviating the inherent isolation of entrepreneurship.
Developing the analytical skills for in-depth market research and strategy is vital, as is the creative skill for rallying supporters through storytelling. Here the art meets science approach is tested. Successful transitions are rarely seamless or straightforward, requiring entrepreneurs to strategically adapt their business plans while cultivating technical proficiencies. The journey of becoming an entrepreneur requires working through this tension to achieve success. With never ending adaptations that pause a challenge but might be what moves the business forward eventually.
This year, during a period of widespread protests in the country, we observed a notable shift in the activities of some users. For instance, motorcycle taxi (Boda boda) drivers quickly transitioned into citizen journalists, providing TikTok users with real-time updates on the street conditions. This trend was observed not only in urban areas but also in rural regions. What’s particularly intriguing is that, in addition to leveraging TikTok Live for monetization, these individuals also shared their MPESA numbers to receive contributions for what they referred to as ‘mafuta’ or fuel money. This behavior aligns with the concept of continuous adaptation that we’ve discussed earlier.
“If you want me to continue sharing the live, nitumieni ya pesa ya mafuta.” (Please send me money for fuel).
Success requires building social capital and remaining adept in the developing cultural nuances
Beyond appeasing the algorithm, there is also the understanding of, and active participation within, relevant communities. It requires a dual focus on technical competence and social acumen. While technical skills are essential for operations, lasting achievement hinges on building strong social foundations.
Entrepreneurs must not only offer genuine value to their communities but also foster trust through consistent, reciprocal engagement over time. Social capital, cultivated through community-centric connections, plays a vital role in driving growth. Bridging networks and meaningful relationships help scale operations and provide insider knowledge. This is mostly around proven dynamics, resources, and strategies, essentially cultivating supportive ecosystems for newcomers.
Remarkably, the incorporation of diverse languages, such as Sheng and native tongues, plays a significant role in creating an inclusive digital landscape. Take, for example, the use of a Kikuyu song by Wanjine is used to showcase how one overcame adversity or their progress both in the personal and business lives. Understanding cultural nuances is pivotal for products and narratives that resonate locally and reach diverse audiences, promoting inclusivity. Addressing digital literacy gaps is increasingly essential to ensure equitable opportunities for all.
In essence, enduring success in the digital realm transcends mere technical proficiency. It requires authentic community participation and effective relationship management. It’s not just about having an online presence; it’s about genuinely connecting with people.
Case Study: John — from chance to opportunity
Meet John (not his real name), a dedicated micro-teacher and digital entrepreneur whose journey sheds light on the challenges and dynamics of transitioning from a hobbyist to a professional seller in the online entrepreneurial sphere. John’s story represents the experiences of many digital entrepreneurs who strive to empower others in the digital landscape.
John embarked on his online business venture several years ago, documenting his progress on TikTok. As he shared his experiences, he noticed a surge of interest from a younger audience and eager to learn. They bombarded him with countless questions, seeking guidance and inspiration.
What makes John’s story particularly relatable is that he was still on his own learning journey. Instead of shying away from the opportunity, he recognized a unique chance to become a mentor to these aspiring entrepreneurs. John initiated informal live sessions on TikTok, generously sharing his evolving skills and knowledge with his growing community.
Through these interactions, he uncovered a common trait among his viewers — they were enthusiastic learners, eager to soak up insights. However, they hadn’t yet taken the leap to create their own content or start their businesses. John’s mentorship was bridging this crucial gap.
Over time, John’s community expanded beyond the confines of TikTok. He strategically extended his online presence to other platforms like Telegram and Facebook, with the aim of reaching a wider and more diverse audience. His commitment went beyond guidance; he consistently shared job listings and opportunities, turning his online presence into a valuable resource hub.
What began as simple live sessions meant for John to document his journey evolved into substantial “meetups” lasting hours. These virtual gatherings were more than just instructional sessions; they were vibrant exchanges of practical skills, ideas, and inspiration. John’s personal journey had transformed into something greater than he initially envisioned.
Through deliberate and thoughtful expansion efforts, John cultivated an organic and resilient community that wasn’t reliant on any single platform. Members of his community were exposed to a diverse array of talents that extended beyond John’s own expertise. What truly stood out was the comfortable banter among participants, indicating that real connections were forming through their engaged interactions.
John’s journey exemplifies the intricate dynamics of transitioning from a hobbyist to a professional seller. His experience showcases the power of mentorship, the importance of community-building, and the transformative impact of fostering genuine connections within digital communities. In his dedication to bridging the second-level digital divide, John has become a beacon of empowerment and inspiration for those navigating the ever-evolving online entrepreneurial world.
Impact on Online Entrepreneurship
In examining John’s journey and the profound impact of his commitment to skill improvement and community-building, we uncover essential insights for the world of online entrepreneurship. It becomes evident that leadership plays a pivotal role, guiding others through the complex digital landscape and granting access to vital industry networks.
Hidden barriers, often insurmountable without dedicated mentors, can be overcome. These barriers, such as limited access to industry knowledge networks, underline the need for new forms digital literacy training and mentorship programs. These initiatives could extend beyond traditional classroom-style methods and embrace more interactive and engaging formats, similar to the approach employed by TikTok micro-teachers.
Our call is clear: to bridge the second level digital divide requires a holistic approach with mentorship at the center. As we witness the rise of audio and video-supported interactions, particularly benefiting primarily oral communities, it’s evident that digital literacy programs should be tailored to suit these diverse needs. Soft skills are being exchanged and honed within online communities, underscoring the importance of peer learning. The subsequent phase involves gaining insights into the cultural intricacies within rural communities and exploring their methods of utilizing technology for the purposes of creation, learning, and online earning.
In essence, digital entrepreneurship transcends technical skills. It’s about empowering individuals to harness the full potential of digital platforms within their unique contexts. As we navigate this ever-evolving landscape, let’s strive for inclusivity and the empowerment of all aspiring entrepreneurs.
