Business Impacts of the Internet for small Firms
Business Impacts of the Internet for small Firms Introduction According to Demick and O’Reilly (2000), small firms are a key economic sector, currently accounting for more than 90 percent of companies in the European Union. Small and medium-sized enterprises (SMEs) play a central role in the global economy adopted by the European Commission. ... Because of their small size, SMEs have less scope to manage the fixed costs involved in tasks like gathering information, assessing the risks and the costs and benefits of investing in new technologies and lack of contacts, knowledge, manpower, and financial resources! ... Furthermore, barriers to the use of Internet technology by SMEs typically include lack of time and lack of specialised technical expertise (Business Information and the Internet, 1998). E-objectives Is the situation technological evolution for Small businesses? To some, the growth of the Internet is just another step in the continuing technological evolution society. Others assert that the Internet simply provides SMEs with one more way of doing the same old thing they have been doing for decades. However, business use of telecommunications technology has evolved through many stages, not necessarily in an even progression but including post, telegraph, telephone, radio, television and fax. Therefore one may ask how the Internet fits into this evolutionary trend. Internet technology, include the World Wide Web, represents a relatively low-cost technology with the potential for high returns to small businesses. Internet technology offers a combination of the television, efficiency of the fax and the potential for multifaceted interactivity that can possibly mimic live in-person communication when it is not otherwise available. Clearly, the Internet is more than just another step in the progression of business technology. For small businesses to be likely to use a new technology, the technology must become widely available to ordinary people. The speed with which the Internet’s WWW is becoming an accepted part of life can be illustrated by comparing the rate of its spread with previously well-accepted technology innovations. ... Clearly, the Internet and Web have been rapidly absorbed into society and smaller businesses can now easily and affordably reach a wider audience than ever before. The potential returns from using Internet technology for e-commerce are not just financial, but span a wide range. The truly entrepreneurial small enterprise can possibly create improvements in virtually all areas of the business, such as: Increased sales Easier product returns Easier order tracking Improved communication with customers, vendors and employees Faster response to customer inquiry.