The Impact of E-Commerce on Small Businesses

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The Impact of E-Commerce on Small Businesses

By | December 2007
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Introduction:

E- Commerce is a phenomena that is emerging rapidly between businesses all over the world, and it has affected the businesses at all sizes in many aspects. This research is looking at the small businesses, and its importance in the market and economy, EC and its benefits and limitation, and what impact has electronic commerce had on the businesses.

Small Business:

Definition: A small business may is a business with a small number of employees. The definition of "small business" often different by country and industry, but is generally under one 100 employees in the United States, while under 50 employees in the European Union. These businesses are normally privately owned corporations, partnerships, or sole proprietorships.

Small businesses are common in many countries, and it depends on the economic system in the country. Examples include: small shops, hairdressers, tradesmen, lawyers, accountants, restaurants, photographers, small-scale manufacturing etc. Small businesses are usually independent businesses that have little influence on the market.

The smallest businesses, often located in private homes, are called micro businesses (term used by international organizations such as the World Bank and the International Finance Corporation). The term "mom and pop business" is a common expression for a single-family operation business with few or no employees other than the owners. When looking at the number of employees, the definitions in the USA and Europe are the same: under ten employees. (sbc004.pdf) (Griffin, 2003)

The Importance of small businesses:

Small businesses have a clear relationship with the economy in general, and if we take an example like the U.S. where over 86% of businesses have no more that 20 employees, and the total number of people employed by these small businesses is nearly one-fourth of the entire U.S. work force, so they play a very important role in its economy as they offer a big help in the...

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