The Internet And Small Companies *

Certainly you have already had an experience like this: You are looking for a product, service or company you need, and the first place you look is the Internet. Using the Internet is convenient, plus there’s the possibility of finding detailed information such as comparing prices from different companies for the same product. However, as you begin your search on the Internet, you realize that only large and well-known companies are represented on the Internet. Small companies like the ones in your neighborhood don’t even have their phone number published, much less their products or services available through the Internet.

A recent study published in Brazil by the Internet Management Committee (CGI) called “Information Technology and Communication,” analyzed small businesses on the Internet. CGI focused their research on companies having at least 10 employees. The study examined the period from 2007 and 2010 and concluded that small businesses in Brazil still are not investing in the Internet as a way to promote their products or services. Their lack of reliance on the Internet is all the more surprising since during the past few years Internet connections have vastly improved in Brazil. We have migrated from the dial-up connection to ADSL, and even more important, businesses have been adopting local networks (also known as LAN) in order to connect more computers. Some companies and even home users now have gone beyond this and adopted wireless connections.

Nevertheless, with these vast improvements in Internet service thanks to new technology, the study shows that small businesses are not doing enough to take advantage of the power of the Internet as a way to boost revenue. More than 60 percent of these companies don’t even have a web page to present their products or services. More than 80 percent don’t have any type of simple customer service, such as an e-mail address where the customer can establish contact with the business.

Some small companies still maintain they don’t need the Internet to promote their business. They have Internet access inside the company only for their employees to use e-mail or search engines. Companies also complain they don’t have the expertise to employ this technology to expand their business, and they are also concerned about the security of information, theirs and their customers, such as with Internet identity theft.

If we look around, it is obvious that many traditional and small companies have found a way to move to the Internet. In some cases, the Internet has allowed small companies to grow into big companies and even trade shares on the stock exchange. New business lines were created specifically for the Internet, while the traditional ones had to adapt, and they are achieving great success.

So what prevents a small company from utilizing the tools of the Internet to expand its business? At the beginning, it seems to many of them like a waste of money with no return in the short-term. However, these companies are forgetting about consumers like you and me who today have high-speed Internet connections at home or in our offices, and we are likely to go to the Internet to look for something we need. When we are looking at our search results, don’t small companies want to be included?

This reluctance to change among small businesses is something we saw in Brazil some years ago — it looks like the paradigm for the adoption of credit cards as a way of payment. In the past, small businesses did not accept credit cards, but now all of them provide this service because they eventually realized how it would increase their business. As a result, today more than 80 percent of consumers’ purchases are paid for with credit cards.

In summary, the Internet is infinite so there is always adequate space for all kinds of products and services, big or small companies, suppliers and competitors. Moreover, there are several ways to develop a presence on the Internet, such as simple web pages, blogs, social networks, collective purchase websites, etc. The first step toward this new business model is not such a difficult challenge, so if you are a small business and considering it, a little research will reveal many ways to enter the Internet business arena. Sebrae, a public service organization that is well-known for offering assistance to small companies can definitely help you and guide your first steps. All of us consumers hope to see you here!

* Article published on Curitiba in English.