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The Impact of Information Technology on Small Business

Author: Ahmed Ragab

Publishing date: 2022-02-09

Categories: Small Businesses - Information Technology

The Impact of Information Technology on Small Business

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Technology provides a wide range of tools entrepreneurs can use to guide their new companies through the startup and growth stages. Small-business accounting, marketing and communication have been revolutionized by advances in computer, network and communications technology, and businesses in a range of industries continually adapt to take full advantage of technological developments.

Accounting

Setting up and managing a new accounting system can be a daunting task on your own. Modern accounting software packages simplify the process of setting up accounts and posting daily transactions. Managing accounts with a small-business accounting package such as Microsoft Money or QuickBooks can eliminate the need to hire full-time or third-party accountants. Accounting software also assists managers by creating informative reports and financial statements to increase decision-making effectiveness.

 

The Internet

The Internet has all but leveled the playing field for small-business marketers competing against established businesses. With advanced video and graphics editing software, small-business owners can create professional marketing materials that reach thousands or millions of viewers online. Entrepreneurs can take advantage of cost-efficient web marketing tools such as Google AdWords to spread targeted marketing messages to a broad audience or a select niche. Several small businesses can share expensive advertising space online through banner- and traffic-swaps.

Startup Costs

Despite the numerous advantages granted by modern technology, there are still drawbacks to technology's inseparable relationship with the business world. One such drawback is the increase in startup expenses for new businesses. Almost every new business requires computer workstations, multiple telephone lines and network infrastructure before it can begin operations. Bootstrap entrepreneurs can often get away with using their own PCs and cellphones during the startup phase, but serious new ventures undertaken by experienced entrepreneurs usually involve large infrastructure projects to accommodate rapid growth.

 

Time Management

Time management is crucial for any small-business owner. Freeing up time from administrative minutiae can allow you to focus on more productive activities, such as drumming up new business and making vital contacts with suppliers and potential strategic partners. Advances in computer and cellular telephone technology allow business owners unprecedented access to in-depth scheduling and customer relationship management software, enabling busy entrepreneurs to hold "face to face" meetings online, from anywhere in the world.

 

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