Investigating the Impact of E-commerce on Small Businesses

This report investigates the impact of e-commerce on small businesses in the UK, exploring its effects on business growth, marketing, and profitability. It analyzes how e-commerce has facilitated the expansion of small businesses by enhancing their marketing reach and customer engagement. The research delves into the perceived value delivered through e-commerce, including increased sales and broader market access, while also addressing the challenges companies face even with e-commerce integration. The report uses literature review and research methodologies to assess the role of e-commerce in promoting the growth of small businesses and examines factors such as online sales, customer tracking, and advertising effectiveness.

The impact of e-commerce for small businesses
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Table of Contents
Introduction......................................................................................................................................3
Project Objective.............................................................................................................................4
Project Scope...................................................................................................................................4
Literature Review............................................................................................................................5
Research Questions/Hypothesis.......................................................................................................7
Research Design and Methodology.................................................................................................8
Research Limitations:......................................................................................................................8
Time Schedule (Research plan).......................................................................................................9
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................11
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Introduction
The Internet has drastically converted this age with cutting-edge technology and enormous
developments in the technique of communication. With the progression of the Internet, the
commerce systems have been urbanized an astonishing arrangement. Despite the fact that the
core principles of business associations have continued as it was earlier, the spontaneous
formation of the profitable policies is obvious because of the assurance of web. Not just has it
gotten cataclysm in the field of communication, however it immensely affects each part of the
common mass, business, administration, order and personal life. Though this is aged just only
two decades, it has changed the view individuals look at the world as it is bringing everything
within the grasp by the fast mode of communication.
As per a newly formed report, small sized businesses in Britain could draw a graph that goes
up in sales by next year if they plan to expand their business through business in 2018. The
number of small sized enterprises who trade online is about to ascend to 88% by the time span
of next 12 months, in comparison to the 64% that currently follow the way of e-commerce to
widen their market (Qu et al., 2015).
A huge part is planning to tender online trade via the company’s own website by next year and
an inclination from 50% this year to 68% by the end of 2018 is expected while an increasing
number of small businesses plan to maximize the use of the company’s own mobile apps to
enhance business, up from 13% to 24% (Choshin and Ghaffari, 2017 )
At the same time the number of businesses that carry on their sales through third-party vendors
is about to increase from 21% to 27% (Ahmad et al., 2015)
A recent report exposes that a good number of number of people shop online during their
vacations and this population has increased drastically from 2013 to 2014. 45% of U.K. buyers
are recorded doing the greater part of their shopping through web back in 2013. Their new study
says this to increase till 71% of U.K. consumers.
This project is going to shed light on the impact of ecommerce on small businesses by analyzing
the data and through a detailed research on the topic.
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The aim of this project is to identify the impact of ecommerce on small businesses in UK.
Project Objective
The key objectives of this project are as follows
 To analyze the impacts of ecommerce on small businesses
 To investigate how the business has expanded through the use of ecommerce
 To assess the perceived increase in the profit in the business by implementing the option
of ecommerce
 To understand the challenges that a company faces even after using ecommerce in their
business
Project Scope
Included scope:
 To identify the factors that have promoted the growth of small businesses in UK
 To evaluate whether E-commerce has affected the marketing departments of these small
businesses (Awa et al., 2015)
Excluded Scope:
 To asses consumer perceptions regarding the use of E-commerce
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Literature Review
This project is going to uncover few findings of effectiveness of e-commerce on small business.
E-commerce or on the whole the 'web business' is a conglomeration of two phases, association,
and business run online. Associations are combining internet arranging with usual shopping and
the project shows how the businesses started using the online medium of communication.
As opined by Park et al., (2015) with passage of time the concept of business is changing as the
same is happening with the perception of the mass towards the term business. Previously this
term was associated with a huge and corporate style association but later on the term has become
quite familiar with small setups as this is an era of small businesses and behind this fact the
contribution of the e-commerce is undeniable.
A challenging part of any kind of business is marketing or letting people know about the new
trade that is launched to cater to the public demand. This was difficult because the mode of
communication was not so vast rather there was no way to communicate other than meeting face
to face. Even few years back it could have been observed that leaflet took a huge part of
marketing and obviously that was a hectic thing to execute. But with development in technology
when the facility of e-commerce has been introduced, it has covered a large portion in terms of
marketing as people can access the online portal from any corner of the globe and here comes the
major change in small businesses. They are left with a big scope of globalizing their trade in no
time.
As mentioned in Computer Weekly, (2018), a business cannot grow until and unless the service
provider is well aware of the mass and its demand and expectation it is catering to. E-commerce
has increased the range of customers as well as it helps the organization to track their consumers.
They can follow all the activities of the customers – starting from how long they roam around
their site to what kind of products are on high demand from which locality. This phenomenon
lets the small business group to target their customers and enrich their products accordingly.
A business is termed as small based on their capital. At the same time when business is set up, a
good amount of their resources are spent behind setting up the outlet (Johnston and Marshall,
2016). But if a small business opts for online trading, it can lower its cost of establishing a shop
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front and instead it leaves you with a scope of utilizing the capital in advertising and promotions.
Selling online denotes one can track their catalog with an ease and know what is actually being
bought, by whom and at what time of the day. E-commerce has removed the time bar that a shop
has to maintain by making the business for 24*7. As per statistics, this is a proven fact that when
a consumer is up to visit an outlet, there is a restriction to pick up things at a time but this
limitation is reduced on a huge part when it comes to online shopping. Consumers end up
purchasing more than they do by visiting physically as there is no problem to carry the huge load
to home and there is always a facility of home delivery.
At the same time the advertising plays an important role when it comes to draw customers and
earn revenue from the ads. A small business tends to become a big one when it gains profit from
several sources (Dvir and Sadeh, 2017). It lets the organization have a control over the ads to
make out which ads are driving consumers to their website and which one are actually not
working. But in case of a business that does not opt for e-commerce, it becomes difficult to know
the same as it is not possible to communicate with each and every customer who is visiting the
store physically.
Figure 1: Expected E-commerce growth rate annually
(Source: Etikan et al, 2016)
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In the year of 2016, one out of five businesses in the Europe opted for the e-commerce option.
The percentage of revenue gained from online trading amounted to 18% of the total earning of
companies with minimum 10 or more individuals employed.
From 2008 to 2016, the percentage of organizations that had online sales gone up by 7 percent
points and the organization’s revenue comprehended from e-sales amplified by 6 percentage
point.
In the year of 2016, 44 % of huge enterprises that opted for e-sales matching to 26% of total
profit in small sized business. On the contrary, 18 % of small organizations is utilizing the scope
of E-commerce corresponding to just 7 % of the earnings of such companies (Saridakis et al.,
2017).
Explicit ways for e-commerce allow the entire ’sales process’ to occupy place in a quicker and
more competent manner. These ways can be widely divided into two categories such as web
sales and EDI type sales that refer to the way of customers, private or business, who all place
orders for the goods and services that they desire to buy.
The outcome of the study is dependent on the effect of E-commerce on small business. The
related data and statistics are not enough to cover up aims and objectives of the entire project.
Nevertheless, there have been different hypothesis that could have been investigated to look into
the nature of business. There lies a gap in the effectual administration of global market in the
field of business which could be assessed significantly through the estimations of various
scholars (Awa et al., 2015). The impact of e-commerce on small that is prominent in the recent
years and at the same time the effect is ever growing to wrap up in one discussion.
Research Questions/Hypothesis
The questions of this research are as follows:
 What impacts does e-commerce have on small businesses?
 How have businesses grown through the use of e-commerce?
 What is the increase in perceived value delivered through e-commerce?
 What are the challenges that a company faces even after using ecommerce in their
business?
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Research Design and Methodology
This project will express the several techniques that would prove to be effective for the study
work. Research is a term that represents the vital study of resources in order to present a
successful exploration to presume the new endings. This project critically asses the hypothetical
methods that are incorporated into the study. Research plan performs an essential function in the
incorporation of a project. Research designs are integrated into three divisions mainly;
explanatory research, exploratory research and descriptive research. Explanatory research is
practiced when a researcher does not have enough suppositions. Exploratory research focuses on
the detection of apt statistics and information related to the research. Descriptive research is
about previously planned information on a subject to understand the assume hypothesis. These
are essential features to be taken under consideration while the conduction of a research works
(Babič and Rebolj, 2016). Sampling technique comprises of possibility and non-possibility ways
for the research work. Data collection ways are important to put together to do research work and
engages the amalgamation of numerical data. Unproductive data is thought to hinder and debase
the research work. There are two noteworthy methods of gathering data primarily: Primary data
and Secondary Data.
Primary data engages the assemblage of data via direct assessment and attempt to recognize
research difficulties. Secondary data stresses on second hand information that is previously
recorded by a human being. The investigator uses the Primary data as it is very effective in the
flat finishing of the research work (Awa et al., 2015).
Research Limitations:
Executing a research demands few things without which the study can never be fruitful from all
the aspects. For example, the lack of financial funding is the key reason that stops the research
work. A research work is all about gathering information from different sources and this needs a
financial support as well lack of which creates an obstacle to make it a complete one from all
facets. Another one concern to create hindrance is lack of responses. Often person to be
interviewed defy spending their time to question the answers (Qu et al., 2015).
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Time Schedule (Research plan)
TASKS WEEKS
1 2 3 4 5 6 7 8 9 10 1
1
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2
Research topic identification
Problem Statement and Rationale
Research aim and objectives
Primary Review of Literature
Research plan and approach
Methods of Sampling and data collection
Ethical contemplation
Formation the final draft
Submission
Gantt chart
(Source: Created by the Learner)
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Conclusion
UK small businesses use the E-commerce to expand their business globally. It assists them
appreciably to lower cost and develop their communication with the customers as well as
suppliers. Internet has a huge surfer and performing sales in this platform is an actual advantage.
Besides, the effortlessness of using the E-commerce is another privilege of expanding a business.
The impact of ecommerce on small businesses is a noticeable thing that is gradually enabling
them to compete with the big ones in the market. Though in present days with the high demand
of the mass all kinds of businesses are growing rapidly, but the introduction of ecommerce to the
world of small business has brought a high rise in the market expansion.
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Reference List
Ahmad, S.Z., Abu Bakar, A.R., Faziharudean, T.M. and Mohamad Zaki, K.A., 2015. An
empirical study of factors affecting e-commerce adoption among small-and medium-sized
enterprises in a developing country: Evidence from Malaysia. Information Technology for
Development, 21(4), pp.555-572
Awa, H.O., Ojiabo, O.U. and Emecheta, B.C., 2015. Integrating TAM, TPB and TOE
frameworks and expanding their characteristic constructs for e-commerce adoption by
SMEs. Journal of Science & Technology Policy Management, 6(1), pp.76-94
Awa, H.O., Ojiabo, O.U. and Emecheta, B.C., 2015. Integrating TAM, TPB and TOE
frameworks and expanding their characteristic constructs for e-commerce adoption by
SMEs. Journal of Science & Technology Policy Management, 6(1), pp.76-94.
Babič, N.Č. and Rebolj, D., 2016. Culture change in construction industry: from 2D toward BIM
based construction. Journal of Information Technology in Construction (ITcon), 21(6), pp.86-99.
Choshin, M. and Ghaffari, A., 2017. An investigation of the impact of effective factors on the
success of e-commerce in small-and medium-sized companies. Computers in Human
Behavior, 66, pp.67-74
Computer Weekly (2018). How building information modelling is changing the construction
industry. [online] Available at: https://www.computerweekly.com/feature/How-building-
information-modelling-is-changing-the-construction-industry [Accessed 12 May 2018]
Dvir, D. and Sadeh, A., 2017, July. The Impact of Technological and Market Uncertainty on
Innovative Development Processes. In Management of Engineering and Technology (PICMET),
2017 Portland International Conference on (pp. 1-5). IEEE
Etikan, I., Musa, S.A. and Alkassim, R.S., 2016. Comparison of convenience sampling and
purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), pp.1-4.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge
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Park, C.S., Le, Q.T., Pedro, A. and Lim, C.R., 2015. Interactive building anatomy modeling for
experiential building construction education. Journal of Professional Issues in Engineering
Education and Practice, 142(3), p.04015019.
Qu, W.G., Pinsonneault, A., Tomiuk, D., Wang, S. and Liu, Y., 2015. The impacts of social trust
on open and closed B2B e-commerce: A Europe-based study. Information &
Management, 52(2), pp.151-159
Saridakis, G., Lai, Y., Mohammed, A.M. and Hansen, J.M., 2017. Industry characteristics, stages
of E-commerce communications, and entrepreneurs and SMEs revenue growth. Technological
Forecasting and Social Change
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