The Internet
In the modern, highly competitive world, the Internet plays a vital role in the operations of many enterprises, including small businesses (SBs). The maturation of the Internet and the subsequent promotion of the digital economy have transformed the trading environment, giving SM opportunities to compete with large organizations (Devereux et al., 2019). In particular, some possibilities for SBs to start functioning at the level of bigger corporations utilizing the Internet concern transaction channels, communication, and marketing (Olsson & Bernhard, 2021; Zhong et al., 2020).
For example, by building an online presence, SBs can manipulate location selection and reach a greater variety of potential clients. Moreover, the Internet is likely to contribute to SBs’ innovation and performance activities (Zhong et al., 2020). As a result, the Internet levels the playing field for small businesses, enabling them to expand their reach to wide markets and customer bases while also promoting their growth.
To better illustrate how the Internet helps SBs compete with bigger companies, it is meaningful to consider, for instance, the role of social media (SM). The concept of SM can be understood as a set of Internet-based applications designed to create and exchange value generated by users. Since people are modifying how they access information about products and services, SM is becoming quite influential for SBs (Devereux et al., 2019; Olsson & Bernhard, 2021).
SM provides access to numerous possible clients, can overcome time-related constraints, and is moderately affordable (Olsson & Bernhard, 2021). Such aspects are essential since SBs typically have financial and resource limitations and are likely to lack marketing proficiency compared to major corporations (Devereux et al., 2019). Therefore, one way the Internet puts SBs on the same footing as large organizations is by providing SBs with opportunities to expand their operations inexpensively with the use of SM.
Social Networking Sites
SM is a good illustration of how the Internet helps SBs, and a significant part of SM is comprised of social networking sites (SNSs). Being a type of SM application, SNSs enable interactions between users and exhibit typical characteristics of a small group of people (Devereux et al., 2019; Modi & Zhao, 2021). One way SNSs can assist SBs is by establishing immediate affinities between companies and their clients, with information traveling faster than through traditional media services (Modi & Zhao, 2021; Read et al., 2019).
For instance, an SNS such as Twitter facilitates online communication between consumers and brands by encouraging real-time conversations. As a result, potential customers are more likely to ask questions and engage with a firm (Read et al., 2019). Accordingly, SNSs can help SBs by instantly connecting them with possible clients.
Another way SNSs can assist an SB is by building communities associated with the business. SNSs not only enable information exchange between different parties but also allow people to form groups and communities. As individuals share their views and experiences, SBs can collect and examine communicated opinions to customize their offerings based on identified preferences (Modi & Zhao, 2021). For instance, Twitter provides a wealth of public content and can connect users and brands by utilizing methods such as hashtags and campaigns (Read et al., 2019).
However, it is essential to note that not all SNSs are the same. For example, both Facebook and Twitter can authorize the creation of communities associated with a company; yet, the scope of persons in each community is likely to vary. The former is relatively private and may attract a similar group to a business, whereas the latter is likely to have a greater diversity of people following an SB (Read et al., 2019). Overall, a significant way SNS can help SBs is by building communities of those interested in specific products and services.
Sites
The Internet offers numerous online platforms that can be beneficial for an SB. In the modern world, customers shift between SM and sites that have reviews to decide between various offerings (Lepkowska-White et al., 2019). Web pages with people’s opinions about products and services can help SBs by creating social networks in a specific location to spread information about a brand (Lepkowska-White et al., 2019; Luo & Xu, 2019).
For instance, Yelp is a prominent site that features millions of reviews from individuals in diverse areas, which others use to choose a particular offering (Luo & Xu, 2019). Since a person can post both a negative and a positive appraisal, an SB can either receive damaging feedback or stand out among its competitors (Lepkowska-White et al., 2019; Luo & Xu, 2019). Consequently, sites like Yelp can assist SBs in promoting their operations within local social networks.
Furthermore, a website can help an SB by providing insights into potential customers. For example, Yelp allows companies to monitor their online pages to collect visitor metrics or control personalization (Lepkowska-White et al., 2019; Medeiros, 2019). Businesses utilizing Yelp can communicate vital information about their operations, advertise their offerings, and incorporate elements such as special deals and videos (Medeiros, 2019).
By managing their activity on the site and examining clients’ reviews, SBs can make adjustments and improvements to both the content posted and their offerings. Nonetheless, SBs are prone to sharing only basic facts, such as location or opening hours, but often omit promotion opportunities (Lepkowska-White et al., 2019). Overall, sites such as Yelp can help SBs attract customers and collect data about consumer preferences, although SBs should be mindful of how they interact with reviews and users.
References
Devereux, E., Grimmer, L., & Grimmer, M. (2019). Consumer engagement on social media: Evidence from small retailers. Journal of Consumer Behavior, 19(2), 151-159.
Lepkowska-White, E., Parsons, A., & Berg, W. (2019). Social media marketing management: An application to small restaurants in the US. International Journal of Culture, Tourism and Hospitality Research, 13(3), 321-345.
Luo, Y., & Xu, X. (2019). Predicting the helpfulness of online restaurant reviews using different machine learning algorithms: A case study of Yelp. Sustainability, 11(19), 1-17.
Medeiros, B. (2019). Picketing the virtual storefront: Content moderation and political criticism of businesses on Yelp. International Journal of Communication, 13, 4857-4873.
Modi, D., & Zhao, L. (2021). Social media analysis of consumer opinion on apparel supply chain transparency. Journal of Fashion Marketing and Management: An International Journal, 25(3), 465-481.
Olsson, A. K., & Bernhard, I. (2021). Keeping up the pace of digitalization in small businesses–Women entrepreneurs’ knowledge and use of social media. International Journal of Entrepreneurial Behavior & Research, 27(2), 378-396.
Read, W., Robertson, N., McQuilken, L., & Ferdous, A. S. (2019). Consumer engagement on Twitter: Perceptions of the brand matter. European Journal of Marketing, 53(9), 1905-1933.
Zhong, S., Qiu, L., & Sun, B. (2020). Internet and firm development. International Journal of Crowd Science, 4(2), 171-187.