Internet increases business competition for small business

While nearly all small business owners have used the internet to further their business opportunities, many believe it has made being in charge of a business more difficult due to an increase in competition, according to new research.

A study by Cranfield University has revealed that 46 per cent of SMEs believe the advent of the internet has made running a business increasingly complex.

Yet Professor Andrew Burke, head of the Cranfield School of Management, says there is ‘no question’ that the internet has enhanced the performance of SMEs.

However, ‘the sting in the tail is that the uptake in internet use has been so dramatic that most now share these same benefits and so few can garner a competitive advantage as a result,’ he says.

A further 62 per cent of SMEs admitted that they were also worried by the increase of competition afforded by the lack of international boundaries provided by the internet.

Adam Wayland

Adam Wayland

Adam was Editor of SmallBusiness.co.uk from 2006 to 2008 and prior to that was staff writer on sister publication BusinessXL Magazine.

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