The high pace in technological change is creating growth opportunities for large, medium-sized and small businesses. From reducing operating costs to increasing company productivity, technology is widely accepted as a crucial driver of businessâ profitability. These and other factors determine how far and fast a small business grows.
Lowering Cost reduction
Lowering costs helps businesses to offer products at a cheaper price, which means they are more affordable to customers. The company is able to increase its capital base and expand through, for instance, buying more equipment. Using computer-based applications and phone systems, small businesses can contract/hire workers remotely and reduce labor expenses. Networking through phone systems has helped many small business owners reduce the number of
Small business owners invest in applications and systems that make completion of tasks and production processes faster, thus, productivity per unit time increases. This means the company can sell more in a unit time and increase
Collaboration is vital in sharing resources, ideas and information. Exchange of data and information using computer and phone systems and applications has made it easier and faster for people (even located at different places) to share information and contribute to projects. In addition to increasing productivity and speed of accomplishing tasks, computer and phone
Inventory management and internal automation
Technological innovations help small business ownerâs account for inventories, track inventories, and manage inventory levels, which helps lower inventory costs. In addition, reduction/elimination of manual operations can help minimize costs.
Technology can help Small Businesses Compete Equally with Larger Firms
While large and medium-sized businesses have some advantages over small businesses such as larger capital base, technology offers an opportunity to small businesses to increase market coverage. The modern market is characterized by high competition and unless small businesses adopt technological innovations, large-sized firms will continue having advantages over them in the market. Learning how to deal with competition is a vital issue if small businesses must grow. Indeed, small businesses can be pushed out of market forcefully where competition is unbearable to them. Since large-sized firms have larger resource base, globalization tends to favor them in the traditional market settings. For instance, they are able to sell their products art at a lesser cost even in foreign markets because of larger economies of scale. In addition, larger corporations are able to invest more resources in market publicity, market
Increasing market coverage
Computer-based and phone-based internet applications and systems help companies reach out to more customers without necessarily setting up a local shop. Computer and phone systems help firms excel in e-commerce: for instance, not only will a small business offer to sell products
Linkage of suppliers, distributors and other companiesCompanies can collaborate with suppliers and distributors to achieve lower inventory costs. They can also link with other companies through computer and phone systems to exchange information, for instance.