Entrepreneurship is often described as a powerful route to economic opportunity. Yet access to starting a business has not always been equal. For example, in the US, many Black entrepreneurs have historically been underrepresented due to financial, technical and structural barriers. However, a new study by Bryan Stroube from the University of Kentucky and London Business School Professor, Gary Dushnitsky, highlights how low-code platforms like Shopify, Wix and BigCommerce are transforming this landscape, and the future of business, by making entrepreneurship more accessible and inclusive.
These platforms eliminate the need for coding expertise, allowing users to build websites and storefronts at a fraction of the price using drag-and-drop tools, akin to digital Lego for business. There are three main benefits: no need to hire technical expertise; significantly reduced overheads, with some platforms starting at less than $50 per month; and scalability is built in, enabling businesses to grow alongside their operations. In addition, a new generation of AI tools, vibe coding tools, which are embedded in platforms like Shopify, are further propelling the rise of a “low-code generation” of entrepreneurs. They expand control over design and content creation, streamlining software development and enhancing platform accessibility.
The impact of these technologies is significant, with Shopify alone already accounting for approximately 10% of the global e-commerce software market. Using data from more than 160,000 Shopify-powered businesses across 32,000 US neighbourhoods, crunched together with demographic information from the Census American Community Surveys, Stroube and Dushnitsky found that neighbourhoods with higher Black populations have significantly more Shopify-based ventures. Dushnitsky says:
By lowering the barriers to entry, low-code platforms and AI tools are enabling people from traditionally underrepresented backgrounds to stake their claim in the digital economy.
These ventures are not just side hustles; they have the potential to drive economic development in areas often neglected by traditional investors. This evolution could lead to a more equitable, creative and dynamic entrepreneurial landscape.
Donations to research at LBS are instrumental in fuelling important studies like this. By investing in rigorous, data-driven inquiry, our donors enable LBS faculty to explore how emerging technologies shape real-world outcomes that leaders and governments can use to inform more inclusive approaches to business and policy.
Through continued support and investment in research, LBS is advancing knowledge that shapes the business landscape, preparing us for the future.
You can read our research into how platforms like Shopify are shaping the future of business in Think at London Business School.
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