The Impact Of E-Commerce On Small Businesses

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.

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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 ...

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...change production planning and control, and supply and payment process, when firms provide customized products.

• EC offer an effective communication between supply and manufacturing, and companies are able to respond efficiently and quickly to demand. (Turban, 2006)

Conclusion:

E-commerce has grown significantly over the past years, it has helped small businesses to expand and create new businesses mush easier and faster than before, it also has changed the way they deal with customers and helped the growth of the economy, and more and more businesses are doing their business over the web, all of that shows how important EC is in many aspects and how it will continue emerging between businesses.

Bibliography:

Griffin, Ebert. Business Essentials. New Jersey: Person Education, 2003.

Turban, Efraim. Electronic Commerce. New Jersey: Person Education, 2006.