This study was carried out because there was a need to find out the issues related to starting and running an online business in children's clothing. Factors to be considered were the form and structure of a company, product selection in a webstore, consumer behavior, marketing instru-ments, and challenges related to e-commerce. In addition to these, the aim was to find out the opportunities and resourcing possibilities in e-commerce. The study did not cover any comparison between alternatives of technical solutions such as options of e-commerce platforms. The aim was to comprehensively gather information about operating e-commerce. In addition, the aim of the material was to be of assistance to those who are planning to start an e-commerce business.

The theoretical framework of the thesis consists of theories related to entrepreneurship and e-commerce. Moreover, it considers theories of consumer behavior and marketing. Practical expe-riences related to the topic of this thesis were collected through a web-based survey which was answered by a total of 26 e-commerce entrepreneurs. The majority of respondents were operating in the business sector of kids´ clothes and accessories.

The study gave answers to questions about establishing e-commerce business, starting points of entrepreneurship and the situation of e-business. In addition to these the study answers ques-tions about entrepreneurial resource needs in e-commerce, marketing, challenges and opportuni-ties in e-commerce. The results showed that it is possible to establish an e-commerce business in the field of kids´ clothing by using scarce financial resource but it requires a lot of effort and marketing moves for the company to become and stay visible among numerous competitors. They also indicate that a substantial growth of the e-commerce industry and foreign competitors in the market are constantly demanding entrepreneurs to perform marketing efforts. The prepar-edness to adjust to the changing market situation is also demanded in order to stay competitive. The survey also revealed that almost half of the respondents had a local store in addition to a webstore. It also revealed that the e-commerce form of clothing business is challenging because there is no physical contact with the product which is generally necessary in the purchase deci-sion.

In this development task the aims were achieved. The study provided answers to the questions related to creating a children's clothing e-commerce business and being an entrepreneur in this industry. In addition to these this thesis offers guidelines and useful tools for starting a business, an e-commerce business and marketing decisions.