Impact of E-Commerce in a Small Medium Enterprise

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SMEs are considered the fastest growing sector of electronic commerce, the growth of e-commerce is evidence of entrepreneurs’ rush to meet the high growing market demands. E-commerce is a strong mechanism for various types of enhancement within a company; it has the use of effective management and the transformation of rudimental business strategies which represent the paste system to a new e-economy which synthesizes a more sophisticated and visionary approach to business (Van Hooft and Stegwee, 2001). E-commerce permits extended firms to be interwoven (Van Hooft and Stegwee, 2001). Owner managers that have the knowledge of the advantages tied to e-commerce and want to replicate these results, awareness and knowledge of e-commerce and its overall activities are very important (Kalakuta and Robinson, 2001; Local Futures Group, 2001; DTI, 2003). King and Clift (2000) debates that the letter “e” will soon be removed which means that e-commerce will be business as it is originally known. E-commerce involves knowing what the clients want. It involves using the internet, information and communication technology (ICT) to improve performance in all sphere of the business. Most importantly, the key function is its vast interconnection and system interaction. The automation of e-commerce has witnessed the elimination of many unnecessary human functions (Follit, 2000). General improvement and efficiency due to quicker processing and a minimal problem is ultimately met in data processing and business transaction (follit, 2000). Subsequently, e-commerce permit businesses to communicate with clients more effectively and as a result this improve business performance, increased loyalty as well as increased gains and competitive advantage (Rodgers et al., 2002).
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