Internet and Self-Employment - Essay Example

?Internet and Self-Employment Before going into the discussion regarding increase of business owners because of internet, let us get a better understanding of what e-business actually is. E-Business means running an online business with a purpose to improve sales and productivity of the business. In today’s world, getting online is the need of almost every company and organization because it not only helps the companies create their names in the international markets but also results in increasing business of the companies. “Ebusiness is a term used to describe businesses run on the Internet, or utilizing Internet technologies to improve the productivity or profitability of a business” (McGuigan, 2011). Internet is a technology, which is used by the companies to operate their business online. Without internet facility, it is impossible to reach international markets and introduce products to the international customers. At present, internet has become one of the extensively used technologies, which has made many business reach success in a very short span of time. Facebook, Twitter, and Groupon are some of the major examples of successful online firms (Beer, 2011). E-businesses are based on ideas. An e-business is successful if the idea behind that business makes people save their money (Quittner, 2009). How Well Does Internet Increase The Progress Of Businesses Online? Internet makes small businesses more profitable and efficient as compared to the small conventional style businesses. A company working in the ebusiness environment makes use of website to make people aware of the products and services offered by the company. A good website is very important for the success of an online company because it is the main source of communication between the company and the customers. A website not only helps a company gain exposure in international markets but also attracts a large number of customers towards the products and services of the company. Conventional companies have no web presence because they do not make use of internet technologies to run their businesses. There is a lot of difference between operating a business in one area and operating a business in different parts of the world though internet. Conventional businesses do not get much exposure to the outside world which results in decreased levels of productivity whereas online businesses operate in different parts of the world by making use of internet technologies resulting in many benefits, such as, attracting more customers towards the products and services of the company and increasing productivity and profitability of the company. In today’s world, a company can never gain competitive edge over its competitors with low levels of productivity and market share. Efficiency and productivity are the keys towards customer satisfaction and achievement of competitive advantage. Online businesses hold a large number of customers and market opportunities as compared to conventional businesses, which increase their chances of achieving competitive advantage in the markets where they operate their businesses. Exposure to multiple markets is one of main features of online businesses. Today, the world has become a global village where customers are very much comfortable with the use of internet and they can search for their desired products online instead of going to supermarkets physically. Another thing is that the customers look for their desired features in the products, which they look for. If they do not get their desired products from one company, they search for other companies online in order to find their desired products, which results in increasing the business of those companies, which have online presence. Therefore, we can say that online presence of a company results in increasing the productivity of the company. Increase in productivity is not only related to the number of customers of a company but also to the number of markets in which a company operates its businesses. Online companies can reach the customers more effectively as compared to small conventional companies by using internet related technologies, such as, emails and websites. Conventional companies have no web presence and they make use of traditional style advertising techniques, which are not very effective in the present world because more and more people are focusing towards the use of internet and related technologies for buying any kind of product. Another feature of online businesses, which makes them superior to conventional businesses, is that online businesses do not usually need to be located somewhere physically. The owners of such businesses can operate their businesses from anywhere whereas conventional businesses need some physical location from where they can be run. Moreover, online businesses are much more efficient as compared to conventional businesses. A 24/7 customer support service is available to the customers in online companies, whereas in conventional businesses, there are fixed timings when the customers can go to the companies to ask the queries. Therefore, we can say that online business are more efficient as compared to conventional businesses and this efficiency and other significant benefits, such as, improved productivity and exposure to international markets make online businesses superior to conventional businesses. Costs of Small E-Businesses and Conventional Businesses The reduced cost of running an e-business is a major factor why a large number of entrepreneurs are going for e-businesses instead of stating conventional from of businesses. The overall cost of running a small e-business is very less as compared to running a conventional business. What an entrepreneur needs in running an e-business is a set of computer systems, some chairs and tables, and an internet connection. There is no need to buy any sort of property or to take some place on rent to run an online business rather an online business can be run even from the house of the business owner. In conventional businesses, the owners first have to look for a suitable location, which increases the initial cost of the business. Next, they have to buy required equipment, furniture, and some business professionals, which add to the overall cost of the business. There is no such requirement in case of online businesses, which makes it a very attractive form of business for the less experienced and low budget individuals. Age Group of E-Business Owners There is no age limit for the e-business owners. Any person, who possesses the ability to start an online business, can go for it. There are no hard and fast rules regarding age of an e-business owner. Generally, people belonging to the age group of 25 to 40 start online businesses because this is the age when a person is more focused towards earning money. What a person requires to run an e-business is the ability to run all activities of the business in an appropriate manner. E-business requires skills in the use of computer, internet, and marketing. Most of the owners of online businesses base their business models on advertising (Rubel, 2007). A good knowledge of internet marketing is very necessary for an e-business owner in order to make the business productive and successful. Level of Experience of an E-Business Owner Although there is no condition of experience to start any form of business, but a person should have some experience in order to make the business successful. In case of e-business, a person must have some experience in using computer and internet. An individual must get useful information about running an e-business from a person who is already doing such kind of business. Without experience, chances of failure increase for the e-business owners. A know how of every aspect of running an e-business is very important for an individual to run a profitable online business. Internet Businesses at a Macro Level At macro level, internet businesses are a good way to earn money in the present world. Today, conventional businesses are not very easy to start and manage due to various legal and economic factors. Starting a new business today is a different experience as compared to few years ago (Stone, 2005). The rate of unemployment is increasing in every country these days and the salaries are not big enough to meet the daily demands of life. Therefore, more and more people are focusing towards internet businesses in order to earn a respectable income. Reduced Risk in E-Businesses The amount of risk is very low in starting online business. First, the startup cost for an online business is very low as compared to conventional business which makes it a low risk business in case the business fails to come up to the expectations of the owner. Secondly, there are no added costs related to online businesses, such as, equipment, administrative costs, or operational costs. Another point is that there is no building or equipment damage risk related to e-businesses because of its simple structure. Therefore, we can say that an e-business is an easy and low risk approach towards a successful business as compared to conventional businesses. Conclusion Summing it up, e-business is a modern way of doing business with a purpose to improve sales and productivity of the business in a very short time. Internet is the main technology, which is used by the companies to operate their businesses online. Internet increases the productivity and efficiency of a business in a number of ways. E-businesses provide many benefits to the business owners, such as, reduced risks, cost effective marketing strategies, web presence for the customers, introduction in new markets, reduction in advertising costs, and improvement in customer service through 24/7 customer support. Therefore, we can say that internet makes small businesses more profitable as compared to conventional businesses. References Beer, J. (2011). THE NEW DOT-COM BOOM. Canadian Business, 84(1/2), 28-34. McGuigan, B. (2011). What is eBusiness?. Retrieved from http://www.wisegeek.com/what-is-ebusiness.htm Quittner, J. (2009). Get Rich Slow. Time, 173(15), 42-45. Rubel, S. (2007). With so many start-ups, only you can save Web 2.0. Advertising Age, 78(44), 31. Stone, B. (2005). Hi-Tech's New Day. Newsweek, 145(15), 60-64. Read More