Research Proposal Investigating the Barriers to Online Profitability for SME's

Abstract

The aim of this research proposal is to gain an understanding over some of the major barriers to online profitability that small and medium enterprises have to deal with. Moreover this proposal also aims at identifying key solutions that can be implemented by SME's which can significantly help reduce existing barriers which can significantly benefit the business and allow it to further expand into various regions through globalisation and be able to reach a multitude of customers located in various regions.Research Proposal Investigating the Barriers to Online Profitability for SME's

Introduction

Small and medium enterprises (SME) are considered to be critical to the growth of national economies. The SME's make up for 99% of the businesses in the UK and provide 59% jobs within the private sector (Stockwood, 2011). SME's can be defined by three key terms; Small, single and local. Small could be used to describe the number of employees working, the capital and assets or the turnover rate. Single implies towards the fact that most SME's have single owners, and a majority of SME's are also local in nature and the business is localized to the location where they are situated. SME's account for 99% of the 23 million enterprises in the European Union and provide a total of 75 million jobs. SME's have relatively recently started incorporating information and communication technology (ICT) and since they are new to this technology most SME's are using inferior technologies and even though e-commerce has spread rapidly amongst large firms its growth remain pervasive in SME's.

Problem Statement

Small and medium enterprises currently face massive globalisation, demanding customers who frequently change their preferences and require rapid response time. In order to respond to these changes organisations need to become flexible, fast, focused on customers, competition and time. In order to remain competitive SME's need to globalise. Globalisation involves a number of cross border activities like for instance trade, investments and distribution. However SME's mostly lack the required knowledge of ICT which becomes a major barrier in the adaptation of ICT. Lack of time and mistrust of the IT industry has lead many SME's to opt against implementing ICT systems, since for an SME the number one goal is to make a profit. Therefore most SME's owners question the return they will make on their investment and in fear of having to bear with failure many SME avoid incorporating ICT systems irrelevant of the fact that such systems can prove to be quite beneficial for these businesses.

Thesis Statement

Understanding and overcoming the existing barriers SME's face while conducting online businesses which would significantly help improve the profitability of these organisations.

Purpose of the Study

The primary focus of this study will revolve around understanding the existing barriers to online profitability for SME's and how these barriers can be removed in order to facilitate SME's in utilizing ICT systems in their businesses which would enable them to complete globally and gain significant prosperity and growth.

Aims of Objectives

The primary focus of this study ...