Dissertation

e-commerce in small and medium-sized enterprises

Submitted for the partial fulfillment of the

requirement for awarding the
Degree of Master of Business Administration (MBA)
By
Sagar Wakhale
130601312

Prepared For
e-commerce in small and medium-sized enterprises

Under the guidance of:

Dr. Rachna Gangwar
MUJ

TAPMI School of Business

Manipal University Jaipur

1. Introduction
1.1 Small and Medium Enterprises
Different countries define small medium enterprises in different ways. Teethe and Burn (2001)
define small medium enterprises (SME) as firms with less than 500 employees". This is further
broken down into micro companies, those with less than 5 employees; small companies, those
with 5 to 20 employees and medium companies, those with between20 and 500 employees".
On the other hand

1.2 SMEs and E-Commerce

Internet became a main way for effective marketing in business. It is one of the most effective
media all over the world and this makes it compulsory channel to use for market entries.
Specifically, small firms have major problems with strong companies and existing small firms
about market entries in the market. They have to prove their identity in the market as an
enterprise despite all these rivalry and difficulties such as web design, domain name, site
security responsibilities to customers, etc.
They have to let customers know that they are in the market and internet is an efficient way to
do so. Furthermore, cost advantages which come with e-commerce are reasonable for market
entry. Small firms have a lot of to do as they are new tithe market or they need to grow in the
market. They try to cut costs and increase investments in their business.

1.3 Importance of SMEs to countries economies

Baraka (2001) reports that growing evidence indicates that Small Medium Enterprises play an
important role in promoting the national economic development of any country. They create a
lot of new jobs and produce much of the creativity and innovation that fuels economic
progress. 90% of the total number of companies in most countries is comprised of small
medium enterprises, which provide on average 70% of job opportunities (OECD, 1997). 26% of
OECD exports

2. Problem statement
People who come from poor background and they want to start their own business but
due to lack of knowledge about the E-commerce use in SMEs they feel Hesitate, thus
they feel less motivated.

3. Literature Review
The Internet and Electronic Commerce have made the world market smaller place to trade in.
The Internet has opened up many possibilities of organizing and running an online business. It
has created a universal platform for buying and selling of goods which has resulted in faster
transaction times and reduced transaction costs. Colin Turner (2000), in his book on the
information of e-economy, talks about the e-commerce business accomplishment and
strategies. E-commerce has its benefits and shortcomings, along with this belief; the companies
are also battling with the pressures of information technology.

4. Research gap
There are so many people who want to do their own business but they doesnt aware from the
Technology so many people are still not aware and familiar with E-commerce thats why they
feel hesitate to taking new step in the new direction of e-commerce world.

5. Objectives
1. Critically evaluate the relevant literature on small firms and the importance/usage of the
internet.
2. Understand small firms problems and barriers to the use of e-commerce through articles,
newspapers, interviews and surveys.
3. Gain specific knowledge of internet usage for small firms in business through interviews,
publications
and company information.
4. Provide recommendations to improve the usage of internet as a competitive tool.
5. The advent of the e-commerce, its advantages and disadvantages.

6. Research Methodology
1. Literature Review Secondary Data was collected to generate and refine the research
ideas
2. Short listing - The next stage of the research comprised of shortlisting of the
institutions/small firms where the case study/survey will be carried out.
3. Unstructured and Structured Interviews The next stage was of data collection which
consisted of in-depth interviews with a representative cross-section of employees and
consumers who revealed variables to be tested at the next stage of the research project.
4. Questionnaire At the next stage of the research project questionnaires were sent to the
employees and consumers to get feedback.
5. Analysis The quantitative data was thoroughly analyzed.

7. Research Limitations
1. All the data which I get from secondary level.
2. Get help from some research papers and websites and tried to get accurate data as
much as I could do in this Dissertation
3. Time was not enough for the Research.
4. Get help from AU Financers SME Department.

8. Reference
www.slideshare.net
http://www.ukessays.com
www.researchgate.net
www.oecd.org