The Significant Impact of E-commerce on Entrepreneurship
It has become apparent that the US economy, and any other economy globally, so heavily depends on e-commerce that any attempt to eliminate the initiative would lead to their collapse. This is a report from a research study that was conducted by the University of Pennsylvania, which indicated that more than 70 per cent of all the business activities in the world is done through the internet. This was a significant revelation to the government since it got the challenge to protect the business operators who perform their business activities through the internet. For many years in history, a lot of potential entrepreneursgot scared of opening businesses to sell their products and services due to the fear of the costs that were associated with the formation of a business enterprise.
First, the entrepreneur required to have a fixed location where they would direct their customers so that they could purchase their products or receive their services. This came with an associated cost in the form of buying land or paying rent. Many of the small-scale entrepreneurs could not afford to pay for these resources, and hence they were forced to quit their dreams of once becoming business operators. The other cost that they had to incur was that of purchasing the office equipment as well as paying wages for the employees, who they could employ so that they could increase their market reach. Again, these costs were too heavy a burden to beginners, and hence they were left with no other option than quitting from entrepreneurship.
The emergence of information technology led to the upcoming of e-commerce, an idea that has completely transformed the business world and the way the activities are carried out. Many organizations in different economic sectors have benefitted from the initiative due to the myriad of advantages that e-commerce has over the traditional business operations. One of the greatest beneficiaries of e-commerce is Stitch Labs, an organization that deals with offering clients solutions relating to their businesses such as accounting and other financial analyses. A lot more firms and individuals have benefited from e-commerce in various ways as stipulated below:
In every business organization, the efficiency of operations is one of the fundamental things that are given priority. By the introduction of e-commerce, the business activities became more comfortable to the extent of making purchases while the customers are seated in their homes. This was one of the most significant advancement that the customers celebrated since they were no more required to travel to the premises of the merchants to access their services or purchase their products. They just needed to have an internet connection and log into the merchant’s website and request the products or services that they required.
Reduced Cost of Operation
As stated earlier, running an e-commerce business requires the operator to have a couple of things in place. They must have the merchandise that they wish to sell to their customers, and they also must have a virtual space on the internet, where they can display their products. Fortunately, the virtual space is free and easy to gain access to. Hence any entrepreneur can afford to start an online business, as long as they have internet access.