Digital Platforms as a Fertile Ground for the Economic Sustainability of Startups: Assaying Scenarios, Actions, Plans, and Players

Abstract

This study examines the transformative role of digital platforms in fostering sustainable entrepreneurship within emerging economies. We argue that platforms transcend mere communication channels, acting as catalysts for innovation and collaboration among startups, thereby driving economic, social, and environmental progress. Our framework emphasizes platform-enabled startups, navigating the unique challenges and opportunities presented by these dynamic markets. We adopt a dual lens, using a mixed-methods approach to analyze digital development trends through the prism of platforms in emerging economies. This reframes the discourse on technology-driven development, acknowledging the unidirectional flow of platform adoption from developed nations. The research emphasizes the need for prioritizing sustainability standards in these regions. Furthermore, we delve into the interplay between platforms and sustainable entrepreneurship with the following three objectives: (1) deciphering the drivers of platform–startup interaction for sustainability goals, (2) formulating policies to maximize platform benefits while mitigating risks, and (3) developing actionable strategies for stakeholders to cultivate a thriving ecosystem of sustainable platform-based ventures. The findings of this study reveal six key uncertainties that will shape the future trajectories of sustainable entrepreneurship within digital ecosystems, particularly in developing nations. These uncertainties encompass the following: environmental and social standards, ongoing education and development, mobile application development and utilization, global market access, and competitiveness and value creation. Several alternative future scenarios have been constructed based on these uncertainties, including advancements in digital technologies, dynamic market conditions and evolving consumer behaviors, a heightened emphasis on sustainability and corporate social responsibility, and a paradigm shift towards collaborative business models. A comprehensive framework of supportive policies and interventions has been proposed to facilitate the realization of these scenarios. Moreover, the analysis underscores the pivotal roles of digital platform providers and startups as key stakeholders in this evolving landscape.