THE IMPACT OF E-COMMERCE ON SMEs

Forum theme: “Community-Based Entrepreneurship and Innovation: A

Strategy for Small Island Developing States (SIDS).”

Title:

“The potential for Small and Medium-size

Enterprises (SMEs) in Trinidad and Tobago

engaging E-commerce to be more innovative.”

Jeanette R. M. Marcelle BA (Hons), MBA

THE IMPACT OF E-COMMERCE ON SMEs

Forum theme: “Community-Based Entrepreneurship and Innovation: A

Strategy for Small Island Developing States (SIDS).”

Title:

“The potential for Small and Medium-size

Enterprises (SMEs) in Trinidad and Tobago

engaging E-commerce to be more innovative.”

Jeanette R. M. Marcelle BA (Hons), MBA

PRESENTATION OBJECTIVES

• To enhance the competitiveness of the non-oil sector;

• To empower communities, disadvantage and otherwise

challenged groups and alleviate poverty through self-

employment opportunities;

• To evaluate the policies and procedures on e-

commerce as it relates to small and medium-sized

enterprises (SMEs) in Trinidad & Tobago.

Jeanette R.M. Marcelle BA (Hons) MBA

INTRODUCTION • E-commerce can be defined as Electronic Commerce that

enables a firm or individual to conduct business over an

electronic network, typically the internet.

• There are three (3) forms of e-commerce - business to business

(B2B), business to consumer (B2C), and

• Consumer to consumer (C2C) is probably the most radical and

recent form of information and communication technology

(ICT) innovation in the areas of e-commerce.

THE PURPOSE OF THE STUDY

The purpose of this research is to emphasize the relationship

between e-commerce and the development of SMEs and how

they can use e-commerce to promote, market, and sell more of

their services and products locally, regionally and globally.

This research focuses on both the opportunities and the threats

facing SMEs in Trinidad and Tobago by evaluating how such

issues concerning adequate levels of telecoms infrastructure,

regulation and investment either help or hinder SMEs from

finding the right and new opportunities through e-commerce.

THE GROWTH OF SMEs IN T&T

SMEs

Catering/restaurant owner

Hair dresser/Nail tech

IT technicians/Website developers

fashion designer

Other

2008 2009 2010

People employed Growth Financial contribution

20%

10%

15%

5%

30%

25%

15%

20%

10%

30%

58%

40%

39%

36%

60%

How can e-commerce be used by small and medium-

sized enterprises (SMES) in Trinidad and Tobago to

strategically extend their competitiveness in the

region and global markets?

THE HOW

The strategy for setting up Internet-based electronic commerce,

and the opportunities and obstacles experienced can vary widely

from one SME to another.

SMEs need to think social and not shopping because Facebook

and other social media network is a “social” environment where

individuals gather to share updates about their lives and interact

with the rest of the world, not as a place to shop.

To be competitive and remain relevant SMEs need to think

“outside the box” and to do this they need to be innovative which

means spending a lot more time and effort on IT.

THE WHY

• The Internet is also instrumental in enabling SMEs in developing countries

to join discussion groups with their peers across the globe that are engaged

in the same business, and thereby share information, experiences, and even

solutions to specific technical problems.

• This is valuable especially to entrepreneurs who are geographically isolated

from peers in the same business.

• The advent of Internet-based electronic commerce offers considerable

opportunities for firms to expand their customer base enter new product

markets and rationalize their business.

Figure 4.1 What type of business are you into?

40%

15%

35%

10%

TYPE OF SMEs

Other SMEs Fashion sector Hospitiality/Culinary sector IT sector

Figure 4.2

55% 35%

5% 5%

BUSINESS STRUCTURE

Sole Trader Social Enterprise (NGO) Partnership Private company

Figure 4.3 THE USE OF E-COMMERCE

30%

15%

5%

50%

The use of e-commerce

Yes

No

Do not know about e-commerce

Still working on implementing e-commerce

Figure 4.4 THE USE OF SOCIAL MEDIA

5%

35%

15%

25%

20%

The use of social media

Public relations Promations/marketing Purchasing/sales Advertising Other

Figure 4.5

Figure 4.6 INTERNET USERS

Laws of managing social media content

.

• The Law of Listening

Success with social media and content marketing requires more listening and less

talking.

• The Law of Focus

it’s better to specialize than to be a jack-of-all-trades.

• The Law of Quality

Excellence trumps quantity. It’s better to have 1,000 online connections who read,

share and talk about your content with their own audiences than 10,000 connections

who disappear after connecting with you the first time.

• The Law of Patience

Social media and content marketing success doesn’t happen overnight.

Major limitations and challenges that face

entrepreneurs and small businesses

.

• Not sufficiently focused policies in place

• Difficulty in accessing financing

• Low levels of productivity and quality

• Insufficient resources for research and development

• Inadequate business information

• Inadequate transport and communication and ICT infrastructure

• Need to access new technologies

• Lack of opportunities to build on the prevailing entrepreneurial

culture

The most important determinant of a country’s competitiveness is its human

capital and talent — the skills, education and productivity of its workforce.

Women account for one-half of the potential talent base throughout the world,

according to ITU’s new report

.

• Closing the male-female employment gap is good for economic growth.

• Engaging women and girls in high-flying ICT careers is not only the right thing to do

from the point of social justice; it is also smart economics.

• Governments are increasingly recognizing the importance of taking steps to support

girls and women in ICT, and a range of initiatives is already under way

.

• In India’s ICT sector plays a pivotal role in bridging the gender divide in the country’s

workforce by helping to overcome biases against women and girls.

• Girls and women are encouraged to take up training courses in computer and ICT

engineering.

• The Philippines is another important ICT player in Asia, and women account for

about 65 per cent of the total professional and technical workers in IT services and

IT-enabled services.

CONCLUSION AND RECOMMENDATION

• All businesses in Trinidad and Tobago need to become more competitive,

globalization has shrink time and space bringing so many virtual

competitors right to your door.

• To SME this is a major threat especially when for the year 2014 ‘Trinis’

spent close to US $1 million in online shopping. However, instead of

viewing it as a threat, think of it as an opportunity to improve your already

existing business or ways to start your business.

• Firms and businesses in Trinidad and Tobago must place importance on the

continuous upgrade of plant and equipment used in their daily operations if

there are to maintain their competitiveness in the domestic and global

marketplace.

• In addition; to the rules and regulations that governors electronic

commerce such as: Laws such as the Libel and defamation Act, the Data

Protection Act, Social welfare Act, Cybercrime bill.

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