Investing into the internet - bubble?

INVESTING IN THE INTERNET

BACKGROUND

The Internet economy has grown at an unheard of rate -- over 170% annually -- and may be responsible for a third of the growth in the national economy. Many e-commerce-related IPO's have been super successes, encouraging investment in yet more startups. Traditional businesses like Wal-Mart, Barnes & Noble, and Compaq also are working to "e-commerce" themselves and compete in this new environment. The Internet as a global phenomenon permits information to move freely, at little cost, across continents.

Nearly everyone, including individual investors, corporate investors like Microsoft, and venture capitalists has been betting on the Internet as The Next Big Thing.

A selected and limited number of sports organizations have jumped on the internet bandwagon as well. However, most of the players in sports have not tapped into the potential of the internet, just yet, due to many reasons.

But is the Internet economy a "bubble"? Could it burst? What then for entrepreneurs and their prospects? Entrepreneurs have seen e-commerce and Internet initiatives as welcome avenues for business creation. Will this remain the case if the bubble pops or will the entrepreneur be blasted away? How can an entrepreneur plan for possible dramatic change?