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Small Business Boom in Ecommerce: an in-depth Research Exploration

Article in International Journal of Business Management and Finance Research · January 2024
DOI: 10.59890/ijfbm.v2i1.1255

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International Journal of Finance and Business Management (IJFBM)
Vol. 2 No. 1, 2024: 1 - 14

Small Business Boom in Ecommerce: an in-depth Research

Exploration

Md. Imranur Barat1, Md. Mazedul Haque2

1Student and Researcher
2Assistant Professor
1,2Department of Marketing, Islamic University, Bangladesh

Corresponding Author: Md. Imranur Barat imranurbarat.fba.iu@gmail.com

ARTICLEINFO ABSTRACT
Keywords: Small Business, This research explores the transformative impact of e-
Innovation, Technology, commerce on small businesses, particularly in the context
Social Media. of their adoption of electronic marketing tools. Focusing
on the rise of small businesses in the booming e-
Received : 29, November commerce landscape, the study delves into the challenges
Revised : 18, December and opportunities faced by these enterprises, especially
Accepted: 22, January during and post-COVID. The investigation underscores
the essential role of digital platforms, such as social
©2024 Barat, Haque: This is media, in reshaping the global business environment.
an open-access article Emphasizing the importance of building trust and
distributed under the terms
delivering value through customer-friendly websites, the
of the Creative Commons
paper also addresses key issues like cybersecurity,
Atribusi 4.0 Internasional.
customer experience, and distinct value propositions.
Through a mixed-methods approach, including surveys
and literature reviews, the study provides insights into
the strategies adopted by small businesses in embracing e-
commerce, revealing a significant shift towards
digitization. The findings highlight the multifaceted
benefits of e-commerce, positioning it as a vital catalyst
for the success and sustainability of small businesses in
the evolving digital landscape.

DOI: https://doi.org/10.59890/ijfbm.v2i1.1255 1
( https://journal.multitechpublisher.com/index.php/ijfbm/index
Barat, Haque

INTRODUCTION
The transformation in news production, dissemination, and discourse is
underway, driven by the increasing prevalence of social media platforms such
as Facebook and Twitter. Yet, our comprehension is rudimentary regarding (1)
the relative significance of social media as a news source vis-à-vis other media,
(2) the extent of their utilization for news discovery, (3) the engagement levels
in more interactive forms of news consumption, and (4) whether these patterns
persist uniformly across nations with comparable technological advancement.
In the realm of commerce, the author contends that small businesses adopting
E-Marketing strategies wield the potential to reshape the global landscape and
character of their operations. The surge in Internet usage and the utilization of
electronic marketing tools for transactions, encompassing e-mail, intranets,
extranets, and mobile phones, presents a realm of opportunities for small
enterprises while mitigating associated risks. This perspective underscores the
pivotal role that electronic marketing tools, inclusive of the Internet and other
electronic media, play in executing marketing initiatives across diverse
corporate entities, irrespective of their scale or nature.

PROFILE OF SAMPLE UNIT

Enhancing the customer-friendliness of your website is a continuous
endeavor that warrants consistent attention. It is said, “Web site makes it
possible for the company to grow by recruiting new customers and by securing
the loyalty of existing customers”(Bellaaj, Bemard, Pecquet, & Plaisen, 2008). It's
imperative to recognize that a substantial 70% of purchasing decisions are made
by consumers before they engage with a sales representative or initiate a
product purchase. This highlights the crucial reality that, although you might
not directly influence the majority of the purchasing process, there are strategic
ways to guide the initial 70% of the conversation.
Of paramount importance in this process is the establishment of trust.
Trust emerges as the linchpin influencing individuals' decisions to choose a
particular business. Therefore, it becomes imperative to focus on building a
website that not only caters to customer needs but also fosters an environment
conducive to trust, ensuring that your online platform becomes a vital part of
the customer's decision-making journey.
Prioritize Value Delivery: Ensure that every page and every piece of
content on your website serves a purpose by delivering genuine value to your
audience. Steer clear of unnecessary filler and focus on providing meaningful
insights and education. Establishing trust begins with offering tangible value in
exchange for your visitors' time and attention.
Address Real Inquiries: Engage with your audience by responding to
their authentic questions. Don't shy away from discussing topics that many
organizations may find uncomfortable, such as pricing or competitors.
Approach this from a customer's perspective, anticipating and honestly
addressing every query that might arise during the sales process. Remember,
trust is built on transparency, and honesty is paramount.
Embrace the Power of Video: Recognize that people connect with
individuals, not just businesses. Leverage the effectiveness of video to build
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 International Journal of Finance and Business Management (IJFBM)
Vol. 2 No. 1, 2024: 1 - 14

trust and humanize your brand. In today's digital landscape, incorporating

video into your website is essential for achieving measurable, long-term
benefits. Ensure that your website includes seven crucial types of videos: 80%
videos, staff bio videos, product or service videos, landing page videos,
customer journey videos, videos outlining your company's promises, and a
video candidly describing situations where your offerings might not be the best
fit. Honest communication through video is a powerful tool for establishing
authenticity and building lasting connections with your audience.

LITERATURE REVIEW
Rise of Small Business in E-commerce: Navigating Challenges and Embracing
Opportunities During and Post-COVID
In the realm of commerce, small businesses, often characterized by
private ownership and operation, are experiencing a significant surge in their
presence within the vast landscape of e-commerce. This transformation is
instrumental in enabling smaller enterprises to not only compete but thrive
alongside their larger counterparts.
E-commerce's Impact on Small Businesses: A Boost Amidst Challenges
The benefits of e-commerce for small businesses are pronounced, with
online purchasing emerging as a lifeline for many during challenging times.
Research from eMarketer highlights that internet shopping contributed to a 3.5
percent increase in overall retail sales in 2020, amounting to an impressive $5.6
trillion. Notably, e-commerce alone experienced a remarkable growth rate of
33.6 percent in the same year. As a research says,
Online purchasing has enabled hundreds of thousands of small
businesses to not only survive, but also to prosper. According to the research
company eMarketer, internet shopping increased overall retail sales by
approximately 3.5 percent in 2020, to $5.6 trillion. In 2020, e-commerce alone
will have grown by 33.6 percent (Prasad & Kumar, 2023).
Adaptation Amidst Crisis: Small Businesses and the COVID Challenge
Amid the unprecedented challenges posed by the COVID-19 pandemic,
small business owners exhibited remarkable resilience. Faced with the sudden
upheaval of established business norms, these entrepreneurs displayed tenacity
and adaptability. As state-wide lockdowns ensued, and subsequent partial
reopenings transpired, small businesses underwent rapid transformations.
Many redirected their focus towards establishing a robust e-commerce presence
and expanding their digital platforms.
E-commerce as a Survival Strategy: Statistics and Insights
Statistics from Alibaba.com underscore the pivotal role of e-commerce in
the survival playbook of small enterprises. A report reveals that 93% of
businesses now conduct some portion of their operations online, showcasing a
notable increase from 90% in December 2019. Additionally, 43% of these
businesses actively utilize e-commerce, marking an 8% surge within the same
time frame.
In essence, the rise of small businesses in e-commerce is not merely a
response to challenges but a strategic shift that positions them to thrive in the
dynamic and evolving landscape of digital commerce. The adaptability
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Barat, Haque

demonstrated during the COVID era has forged a path where e-commerce is
not just a survival strategy but a defining element of the future for small
businesses.
Led to digitization
The Internet has experienced exponential growth, doubling in size
annually in recent years and creating a global network for the seamless
exchange of digital data. The most recent advancements have been marked by a
surge in new commercial activities. Despite extensive coverage in mainstream
media, there is a limited understanding of the influence the Internet is exerting
on businesses utilizing this platform for conducting commerce. As research
says,
The Internet has doubled in size every year in recent years and now
spans the globe, facilitating the exchange of all matter of digital data. Recent
development has been categorized by an explosion in new commercial activity.
Despite overwhelming coverage in the popular press, relatively little is
understood regarding the impact the Internet is having on firms that use this
medium to facilitate commerce (Auger & Gallaugher, 1997).
Small businesses have swiftly embraced digitization, utilizing e-
commerce as a pivotal platform for this transformative shift. The initiation of
online sales by small enterprises has not only granted them access to an
expansive customer base but has also presented lucrative opportunities for
growth and expansion. This proactive move towards digital channels has
catalyzed an inherent synergy between small business operations and the latest
technological advancements.
Examining the impact of a small business in the context of Bangladesh
sheds light on the significant contributions of these enterprises to the national
economy. From traditional handicrafts to local grocery stores, pharmacies,
hardware shops, mobile retailers, recharge businesses, and local fruit and
vegetable vendors, small businesses form the backbone of various industries.
These diverse sectors collectively play a crucial role in job creation, providing
sustenance for a considerable portion of the Bangladeshi population.
In essence, the dynamic partnership between small business endeavors
and the digital landscape, epitomized by e-commerce, underscores a
transformative narrative. This narrative not only enriches the economic fabric
but also exemplifies the adaptability and resilience ingrained in the
entrepreneurial spirit, ensuring the continued prosperity of small businesses
within the evolving digital landscape.
Because of the pandemic last year, most businesses suffered greatly and
faced significant losses; nevertheless, internet shopping had a positive response
and the business expanded significantly. Because people were unable to go out
in crowded areas and do their own shopping, they opted for sitting at their
homes and ordering products, such as clothing, groceries, medicines, or
vegetables, as well as power (Kumia, 2006)
However, each of these advantages and disadvantages will be analysed
in greater depth in connection to these fundamental principles. As a result, the
goal of this review of literature is to emphasise what has been done and what

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 International Journal of Finance and Business Management (IJFBM)
Vol. 2 No. 1, 2024: 1 - 14

future researchers and educators may learn from a wide range of findings in the
classroom context.
Given its recent emergence, the term "social media" can be classified
within more comprehensive and established frameworks (Chen, 2003). Among
these, Information and Communications Technology (ICT) stands out as one of
the most recognized and extensively studied categories. ICT encompasses a
wide spectrum of interactive and non-interactive mediums, ranging from
interactive whiteboards to offline computer games. In instances like offline
computer games, the audience is confined to individuals physically present and
engaged with the medium at the time.

METHODOLOGY
This study aims to investigate the multifaceted aspects of e-commerce
platforms, focusing on the operational procedures involved in product
showcasing, customer transactions, and the subsequent fulfillment processes.
Employing a mixed-methods research approach, this methodology integrates
both quantitative and qualitative methodologies to provide a comprehensive
understanding of the intricate dynamics within the e-commerce landscape.
Primary data collection: A questionnaire has been devised to collect
primary data from small business employers in order to investigate the impact
of e-commerce on small businesses in Dhaka, Bangladesh. We emailed Google
forms to a few small business owners to measure the level of e-commerce
adoption in their firm.
Secondary data gathering: We collected secondary data from a variety of
journals, books, periodicals, and websites containing technical information.

STATEMENT OF PROBLEM
E-commerce enterprises encounter challenges across various dimensions,
necessitating strategic responses to mitigate these issues. Victor Congionti,
Chief Information Officer and Co-founder of Proven Data, emphasizes the
critical importance of establishing robust cybersecurity policies and
technologies, particularly for small e-commerce ventures. He underscores the
need for comprehensive rules and procedures to fortify the cybersecurity
framework, highlighting that disruptions caused by cyberattacks can be
financially perilous for small businesses, heavily reliant on each transaction's
success.
Conjoint asserts that small business owners aspire to implement effective
cybersecurity measures to safeguard data while empowering employees to
adeptly deploy procedures and technologies against potential assaults. The
economic viability of small firms is intricately tied to the efficacy of their
cybersecurity framework.
For businesses primarily engaged in e-commerce or those venturing into
online selling, providing customers with a comparable experience to brick-and-
mortar stores poses a challenge. George Dunham, CEO of epaCUBE, identifies
pricing and client segmentation as often overlooked aspects of the consumer
experience during the transition to e-commerce. Dunham emphasizes that,
when embarking on an e-commerce initiative, ensuring a seamless customer
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Barat, Haque

experience is crucial as customers anticipate online treatment equivalent to in-

person interactions. In the competitive e-commerce landscape, small businesses
grapple with various rivals, requiring them to match aggressive pricing, offer
competitive goods, and deliver superior services to capture their target
audience. Actully e-commerce “empowers us (business) to engage confidently
with international business partners, fostering connections with people
worldwide.” (Barat & Jobaar, 2023)
Calloway Cook, Founder of Illuminate Labs, suggests that developing a
distinct company value proposition that clients cannot find elsewhere is pivotal
for small firms to withstand pricing competition. In the saturated e-commerce
industry, distinguishing oneself becomes challenging, making it imperative for
businesses to articulate a unique value proposition to stand out amid the
competition.

OBJECTIVE OF STUDY
 Minimal Operational Costs
 To Increase Revenue And Profitability
 To Grow With The Market Trend And Attain Changes.
 E-Commerce May Be Flawlessly Incorporated Into The Strategies Of
Small Businesses.
 Every Percentage Of Customer Advocacy
 Increasing Sales In Ecommerce Stores.
 Increasing Brand Awareness.
 Attracting More Visitors.
 Increasing Client Satisfaction.
 A Minimum Of Shopping Cart Returns.
 Riskier Conversion Rates.
 Getting Into Continuing Business.
 Enhancing The User’s' Encounter

SCOPE OF STUDY
Merchants establish online platforms showcasing product images,
accompanied by detailed descriptions and pricing information. Customers
availing themselves of these products enjoy a variety of payment options,
including Cash on Delivery (COD), e-wallets, net banking, credit cards, among
others. The responsibility of the online seller encompasses not only processing
the transaction but also ensuring the secure and punctual dispatch of the
purchased merchandise to the buyer.

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 International Journal of Finance and Business Management (IJFBM)
Vol. 2 No. 1, 2024: 1 - 14

DATA ANALYSIS AND INTERPRETATION

1. Do you have an e-commerce system in your organization?
Yes No
83 17

2. How long have you been using e-commerce in your organisation?

Last one year 10
Last three years 50
Last five years 25
More than five years 15

3. Do you believe that e-commerce has an edge over traditional commercial

transactions?
Yes 92
No 8

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Barat, Haque

4. What factors prompted you to implement e-commerce technologies in

your organisation?
Upgrad To deal Data Time
e Business with suppliers maintenance Efficiency
Operations
45 5 35 15

5. Which of these e-technologies are you implementing in your company?

Inte Cr E- E- Bio F
rnet edit Card shopping wallet metric ax
65 17 13 3 1 1

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 International Journal of Finance and Business Management (IJFBM)
Vol. 2 No. 1, 2024: 1 - 14

6. Which factors did you examine while deciding on an e-commerce system

for your company?
Personal Brand Cost Technical
Recommendation Name Factors Support offered
58 22 9 11

7. Did you encounter any of the following issues when you first installed
and began utilising the e-commerce?
Deciding on Equipment Selection 1
0
Lack of information 5
Difficulty in usingequioment 8
No problems experienced 8
3

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Barat, Haque

8. To what extent have you encountered any of the following issues with
the Internet or e-commerce since you first began using it?
Security Maintena Reliabilit No
breach nce most costly y Service problem
than exopected experirnced
7 7 16 70

9. In what ways has the usage of e-commerce benefited your business?

Increased Sales 1
0
Improving customer Relationship 2
0
Improving Supplier Relationship 3
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 International Journal of Finance and Business Management (IJFBM)
Vol. 2 No. 1, 2024: 1 - 14

0
Speed up Process like transactions, recruitment, 2
marketing, etc. 0
Keeping upto date with external business 5
environment
Internal Communication 5
Convenience 1
0

10. Do you provide employee training when adopting e-commerce

technology?
Yes No
10 90

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Barat, Haque

LIMITATIONS
 In general, the accuracy of the respondents' responses determines the
findings of surveys.
 Although there are millions of users of online marketplaces, our research
relies on a select group of small business owners.

FINDINGS
 Table 1 shows that 83 percent of small business owners have ecommerce
facilities in their organisation.
 Table 2 shows the usage of E commerce in the organisation for 5
exceeding years.
 Table 3 shows the pie of the respondents sharing their views on e-
commerce having a benefit over traditional methods.
 Table 4 shows the ideology of the employee’s motivation in picking e
commerce in their organisation.
 Table 5 shows the adaptation being chosen to finish complied tasks
assigned.
 Table 6 shows the factors the respondents consider while selecting e-
commerce.
 Table 7 depicts if the organisation faced any problems while adapting to
e-commerce.
 Table 8 shows what problems were faced by them while pre developing
of e-commerce as a whole.
 In Table 9 the survey asks the respondents to pick what has been the
most benefits to their businesses.
 Table 10 asks the organisations if they help out employees in the change
of the platform.

SUGGESTIONS
 Selling goods that assist customers in achieving their personal or
professional objectives through an educational platform is a fantastic method to
generate passive income.

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 International Journal of Finance and Business Management (IJFBM)
Vol. 2 No. 1, 2024: 1 - 14

 It has become fairly popular to sell items that have been thrifted,
purchasing products that have been thrifted and then flipped has become
popular.
 Local sourcing is a growing trend that is advantageous to your
company and neighbourhood stakeholders.

CONCLUSIONS AND RECOMMENDATIONS

In a digital era where more than 70% of internet users actively engage in
social networks, dedicating an average of at least one hour each day, it is
evident that social platforms have evolved into a virtual reality fostering
communication, engagement, and trust. Notably, over 60% of these users access
social media via mobile devices, with strong indications suggesting a continual
upward trajectory in the coming years.
In this societal landscape, it is imperative to acknowledge that social
networks have transcended personal interactions and seamlessly integrated
into the commercial sector, constituting a new dimension of reality. A
resounding 90% of marketers either currently leverage or plan to utilize social
media for business purposes, with more than 60% intending to do so in the
immediate future.
As evidenced by the findings of the present survey, e-commerce emerges
as a multifaceted solution for small business owners, providing diverse avenues
for growth. It facilitates seamless interaction with both consumers and
suppliers, expedites processes, and extends critical support to small businesses.
The study extensively explores the pivotal role of e-commerce in fostering the
expansion of small businesses. Notably, the overwhelming majority of small
businesses in Bangalore actively embrace e-commerce services, including
internet platforms, credit cards, and e-wallets, underscoring the instrumental
role of digital commerce in the operational landscape of small enterprises. This
widespread adoption reflects the transformative impact of e-commerce,
affirming its position as a crucial catalyst for the success and sustainability of
small businesses in the contemporary business environment.

ADVANCED RESEARCH
Each study has limitations; thus, you can describe it here and briefly
provide suggestions for further research.

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 Barat, Haque

REFERENCES
Auger, P., & Gallaugher, J. M. (1997). Factors Affecting the Adoption of an
Internet-Based Sales Presence for Small Businesses. The Information Society,
13, 55-74. https://doi.org/10.1080/019722497129287
Barat, M. I., & Talukder, M. J. (2023). Exploring the Impact of English Language
Proficiency on Business Communication Effectiveness: A Comprehensive
Research Analysis. International Journal for Multidisciplinary Research, 5(6),
1-11. https://doi.org/10.36948/ijfmr.2023.v05i06.8809
Bellaaj, M., Bemard, P., Pecquet, P., & Plaisent, M. (2008). Organisational,
environmental, and technological aspects linked to the benefits of website
adoption. International Journal of Global Business, 1(1), 44-64.
Chen, T. (2003). The proliferation and implications of the Internet and e-
commerce in Taiwan. IWays, 16(4), 185-193.
Kumia, S. (2006). E-Commerce Adoption in Developing Countries: An Indonesia Case
Study (1st ed., pp. 145-165). Melbourne Uiversity Press.
Mehrtens, J., Cragg, P. B., & Mills, A. (2001). A model for Internet adoption by
SMEs. Information and Management, 39, 165-176.
Prasad, S., & Kumar, T. (2023). Rise of Small Business in Ecommerce. Journal of
Research in Business and Management, 11(4), 112-120.

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