Wednesday, 21 January 2015

The impact of Internet on SME’s

The internet has made its availability felt in an around the oblate spheroid, and like every where it has made positive impact in the economy of the UK especially in growth of Small and Medium size enterprise. According to the 2010 data the contribution of internet for the SME’s in UK has been around 56.09% which according to economist is a healthy rate in terms of business standards and it acts as a vibrant economic rate. Internet provides SMEs in UK with new opportunities to enhance existing export activities or to find new foreign customers. During the last fifteen years or twenty years Internet literally changed the landscape of global business arena and has taken the SME’s to an higher altitude. A question often rises how Internet has been influential in making SME’s an effective tool to run an organized business? It is because broadband and line services not only help SME’s begin internationalization but it also helps in maintaining a dominant position in the global market. In-fact it acts as a gateway when the organization knocks at the doors of foreign market, moreover the boom of internet in the UK has allowed in making the SME firms of the country get international recognition. As it is known the SME’s are considered to be the backbone of the European economy, and thereby it is also the core in the economy of UK. Some economist opine that the new technological progression is widely accepted as a channel of communication which allows the SME’s in carrying out transaction by customers and competitors within the market. The various business deals which are carried out presently are done online via the internet, be it a commercial transaction or a conference with the client or may be selling of goods through e-commerce, both the SME and the internet play a hand in hand role in order to make products and services available in quick time. In order to understand their Internet activities, BCG conducted a survey of near about 900 SME’s which has shown near about 77.09% of the sector is in need of Internet in order to make their availability in and around UK and in the global scenario. The present business structure is moving at a rapid pace and thereby each and every client is need of their services on time, each and every business houses are moving online by using high ended internet and broadband services. Be it broadband and line services in the UK, it has been stable and continuous. According to a report concluded by a business journal in the UK various SME’s in the year spanning between 2002-2008 went online, 67.08% is the exact number to be specific, and the number has increased rapidly in the past couple of years, which implies internet has certainly made an impact on the SME’s which are in operation in the UK. Talking of the broadband those are provide by the service provider to the SME sector are of high ended, be it the wires or the cables or may it be the ports modems or routers, one can be rest assured to receive optimal products from the service providers. The respective organization believes in building up a positive channel of communication with the SME sector which in-turn boosts up the economy and contributes in the rate of GDP. Nancy Garcia, whose business falls under SME is of the opinion that internet service she has been using in order to run her business has been more than effective and added positive values to her business. To be honest the broadband or line service in usage is cost effective and can be afforded by all and sundry, as said before the products are highly durable which will surely meet needs of several SME’s.

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