Opportunity Knocks...but it Doesn't
Wait:
Small Business Internet Solution Providers Wake Up!
by Diane W. Collins
President, MARKETINGWEB.COM
dcollins@marketingweb.com
Archive
Technology companies providing Internet
solutions to the small business marketplace need to seriously
reconsider their approach. It is true that small business was
among the first to embrace the Internet. The Internet was seen
as an "equalizer" or
a method of leveling the playing field by giving small business
an economical means to compete with the "Big Boys". However,
the majority of small business has not taken hold of the Internet's
full potential by developing web sites and enabling e-commerce.
In fact, out of this market which, according
to the Yankee Group, "represents
98% of all US businesses, 50% of the GNP and spends approximately
$445 billion annually on information technology products and services" only
41.2%, according to IDC Research, currently access the Internet!
Yankee research states that of the small to medium businesses surveyed
in their report only 30% felt the Internet was important to their
business goals. The small businesses who actually have an Internet
presence (SBI's) for the most part remain as entry level "electronic
brochures". Why?
Recent reports identify small business
concerns as web development costs, maintenance, customer service
and security. These issues are thought to be the existing impediments
to furthering the small business IT market. However, these are
the concerns of the small businesses who have an Internet presence...
SBI's, the ones who already understand the value. What about
the majority? Let me further my point, all of these SBI concerns
are being addressed by innovative software companies developing
packaged software solutions that reduce costs, enable you to
maintain your own site, deliver high quality customer service
and provide the security options small business needs. Yet the
majority of small business is not running to take advantage of
the one tool that will take them into the next century...that
will preserve their place in the economic structure. "Among
the small (2-99 employees) and medium (100-499) businesses surveyed
by the Yankee Group, an average of only 30 percent stated that
the Internet was important to achieving business goals." What
is the missing link?
Through technology we have structured
the solutions. But are we still believing that "if we build it they will come?" Just
because we have the solutions doesn't mean small business knows
about them or believes in them. So what's the answer? Education...both
online and off. If you're not spending money on education it really
doesn't matter what products you have to offer. It is also important
to remember that 58.8% of your market is still off-line. If you
don't offer off-line education in strategic small business arenas
you're missing the majority of your market share.
Why do companies providing Internet solutions to the small business
marketplace need to get on this now? According to Forrester Research
by 2002 of the 5,367 companies that make up US Big Business (1,000
- 4,999 employees) 98% will be online and 79% will be e-commerce
enabled. Concerning the 1,352 companies comprising US Very Big
Business (5,000 plus employees) 98% will be online and 92% will
be enabled with e-commerce. Including 1999 there is a four year
window. We all understand the importance of being in the marketplace
first. We have all seen the changes taking place in Internet demographics.
The small business customer is online. Even local markets
will be effected by local content sites. Studies are available
on cities as designated "most connected" by population.
Without an Internet distribution channel small business will be
seriously handicapped.
No one understood this better than Amazon.com,
once-upon-a-time a small business. However, consider this...
how is Amazon.com currently affecting the small business book-seller
who is off-line? How much more affected do you think he will
be in 1999 when the major shift in Internet demographics is seen
as "the masses come to the
net"? The small business IT market is going to shrink unless
small business is brought up to speed on the opportunity available
to them. Unless this is accomplished, the ROI for small business
Internet solution providers will definitely be reduced. Opportunity
knocks...but it doesn't wait. Providers of small business Internet
solutions had better get heavily into education...and that means
on and off the Internet if they want this exceptional market
called small business to remain a viable marketplace for their
products and services. Otherwise, it's just going to be the "Big
Boys' " game.
JANUARY 11, 1999
Copyright © 1999 MARKETINGWEB.COM.
All Rights Reserved. Legal Notices.
Related Articles:
IDC Predictions '99: The "Real" Internet Emerges, IDC
Research
Small Business Embraces the Internet, IDC Research
SMBs Missing Internet Opportunity, CyberAtlas
More Small Businesses Using the Internet, CyberAtlas
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