The Impact Of E-Commerce On Small Businesses Essay

Many people want to live the “American Dream”, and what better way to do that than to start a small business. Small businesses are incredibly important to the United States economy. Small businesses have been around from the beginning of the history of the U.S. and remain a large portion of the business community today. Small businesses are the driving force for job creation. Small businesses struggle to meet regulations set in place by the government and at the same time stay afloat in the U.S. economy. There are strict size standards set in place that make small business owners weary of expanding the amount of people they employ. Small business owners also struggle with offering healthcare to their employees. Small businesses try to stay ahead by introducing new and unique products. In an ever-changing economy, it is important to understand the impact of small businesses in the United States.

There is a reason the term “small business” is vague; it reflects the lack of a generally accepted definition. The U.S. Small Business Administration (SBA) has established numerical definitions of small businesses. These size standards vary to reflect industry

Small businesses are independently owned, for profit businesses which employees no more than 500 employees and are not dominant in its competitive area. Small Businesses are critical for the US economy because more than 99 percent of businesses in the US fall under the small business category (Farrell, Hirt & Farrell, 2009). This is clearly why small businesses are important for the US economy because of its percentage make up for the business industry. Small businesses also create opportunities for minorities and give women the opportunity to successful in the business world. Small business owners are not guaranteed

Small town business is always benefiting the community in many ways. It’s not hard to see that locally owned small businesses in small towns have a focus on their local community. My feeling is that small town people start out more focused on our local community than people who live in suburbs or big, loose metropolitan areas. They donate to local causes, volunteer at local events, and they participate in local issues. When small businesses need help they hire local people, they buy from local suppliers and they contract to local services. These all add up to a lot of community

I am choosing to do my Business Analysis paper on e-commerce. I will explain the importance of it as well as the effects on the global economy. I will discuss the advantages of telecommunications and information technologies in a business versus those businesses without e-commerce. I will also discuss the marketing strategies involved with e-commerce and how it helps businesses. Due to the global nature of internet business, electronic commerce (e-commerce) standards have become a priority on the national and international level. While most traditional businesses are subject to local, state, and national

Small businesses are generally started by an entrepreneur portraying their idea to the public and selling for a profit, beginning with a micro business, sole proprieter or a partnership. This will eventually evolve into a small business if they hire more employees. As more employees are hired, this adds to their quality of life through giving a sense of self worth to those employed. Innovation is important to small businesses, as it opens doors into oppertunities for future endeavours. Innovation will allow a business to predict possible future needs and to fulfull these before other competitve businesses do.

With more than half of the private sector in the United States, small business makes a crucial part of the economy of the country. Out of the 90 million people hired, 50% of them are working in small businesses or small establishments. (Wiatrowski, p 29) Regardless of how popular they are how much success they have had, finding out an exact definition of a small business is very difficult.

Numerous large businesses that are operating today were once started as small businesses. A new business is established to create a good or service that no other businesses have ever created or simply a product of higher quality than existing products, with the purpose of meeting customers’ needs and earning profits. Due to the technological advances at the present time, starting and operating a new business is less laborious. Nevertheless, would-be entrepreneurs should be familiar with the proper approaches to start their businesses.

Small businesses were once the backbone of the United States economy. After a time these business owners expanded, merged, and bought other businesses. This historic business trend has created some the well know corporations we know of today. One example would be the development of Wal-mart. Today, small businesses operate in the shadows of “big box” stores. However, small business owners account for more than 90% of, but only less than 5% or 10% of the GDP, “gross domestic product.” As a manager of a large corporation or a prospective business owner it is wise to be knowladgeble of new competitors, state of the economy, and current management trends. There are trends today that will change everyone’s expecatons of small business

Small businesses are mighty minnows, reflecting the competitive spirit that a market economy needs for efficiency; they provide an outlet for entrepreneurial talents, a wider range of consumer goods and services, a check to monopoly inefficiency a source of innovation, and a seedbed for new industries; they allow an economy to be more adaptable to structural change through continuous initiatives embodying new technologies, skills, processes, or products (Ibielski 1997, p. 1).

This report offers a briefing of SME (Small and medium sized enterprises). Defines SME in terms of employee numbers and turnover. Explains to the reader why small business are important for UK economy and what impact SME has on it. Report opens up and helps to understand the advantages and disadvantages of creating the business, explains the risks entrepreneur must take in order to make it successful. It is useful for people who is thinking to open up their own business because report shows sides of the industry that never been consider and helps to understand what is required in case to succeed and drive the business into the global market. Enlightens three main ways of business that individual can start and shows both sides of the coin.

E-commerce is a product that has been available since the early 90’s. It is something that people are familiar with. A product that is now part and parcel of people’s lives.

The economy’s motivation of small businesses stability as compared to large businesses that are well established, also the financial assistance of other organization including the government.

Entrepreneurship and small businesses is the foundation and driving force of America’s success. Apple, Amazon, Google, and Wal-Mart (just to name a few) all started as small businesses. Small businesses make up: 99.7 percent of U.S. employer firms, 64 percent of net new private-sector jobs, 49.2 percent of private-sector employment, 42.9 percent of private-sector payroll, 46 percent of private-sector output, 43 percent of high-tech employment, 8 percent of firms exporting goods, and 33 percent of exporting value. It’s essential that small businesses continue to flourish if we are going succeed as a nation.

E-commerce has built a nearly perfect market because immediate and people are able to compare the offerings from numerous sellers worldwide. The growth of E-commerce has numerous advantages over the traditional stores or brick-and-mortar stores, which include greater flexibility, improved market outreach, lower cost structures, faster transactions, broader product lines, greater convenience, and customization (Srinivasan, Anderson and Ponnavolu, 2002). E-commerce provides opportunities to businesses especially in developing countries to access to the global market and reduce the transaction costs, and also helps developing countries to overcome the world economy problems (Lawrence and Tar, 2010). Since E-commerce enables all businesses from anywhere in the world to access to the global market, all people have equally chance to compete with the others. Without E-commerce, it is almost impossible for small-medium enterprises (SMEs) to compete with the large organizations due to the amount of the capitals that makes the larger organizations to hold the advantages over the smaller organizations. E-commerce is involved the use of the information technology (IT) to improve the communications and transactions with all of an organization’s stakeholders. E-commerce is also used as a new innovation strategy to raise business competitiveness,