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EXECUTIVE SUMMARY
Small business development is a crucial source of employment and
growth within any economy and the emergence of the Internet and
ecommerce is evolving as a potentially key facilitator of sustained
development for many small firms.
The main purpose of this study is
to examine the potential benefits and constraints associated with small
business use of e-commerce. The project firstly critiques existing
relevant e-commerce and small business development literature to
facilitate identification of key partial frames of guiding
literature-based understanding. That understanding is then used to
identify key research issues for a subsequent case study investigation
and assessment of a small business, KPD Antiques and Collectables (KPD),
which was commenced on a part-time basis utilizing a combination of
traditional shop form retail outlet and online selling. Development of
the business has stalled and the enterprise is struggling to fully
utilize e-commerce to underpin its ongoing development. Assessment of
the business is built up through face to face interviews with the owner
manager, analysis of secondary documentation and assessment of the
business’s current website.
Findings of the study revealed that small
businesses whilst bestowed with possible advantages relating to
smallness of operation and with regard to use of e-commerce in
particular, also face size related problems and constraints – and
specific potential difficulties with regard to effective uptake of
e-commerce. Findings from the case study assessment supported much of
the current existing literature-based understanding regarding small
business difficulties associated with effectively anchoring-in
e-commerce, including restraints of time, technical ability constraints
and the issue of adequacy of owner manager e-commerce awareness and
knowledge. But also gave specific focus to the issue of inadequate
marketing and management of the e-commerce process: for example, the
need for effective dovetailing of mainstream traditional business
marketing effort and appropriate and creative e-commerce related
marketing. Integral to this is the highlighting of how a small business
could have ‘the best website in the land’ – but if insufficient numbers
of people and the right potential customers in particular are unaware of
that website it is of little use.
The study concludes with the
offering of recommendation with regard to KPD development of effective
business and marketing strategies focused on identification of and
communication with potential customers, including enhanced on-line
interaction with that customer base for the building of trust and
‘educating’ that customer base in terms of KPD product and service
offerings – with the tackling of the issue of search engine optimisation
being integral to this.
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