Small Business Solutions

History of Small Businesses

In the beginning, all businesses were small businesses. There wasn’t a need for “small” businesses until more prominent companies emerged. The idea that big and small businesses began during The Great Depression. During this time, people became aware of business sizes and were impacted when things like the middle class and organized labor emerged.

Subsequently, in July 1953, the Small Business Administration was created and established by Congress under the Small Business Act to support small businesses and entrepreneurs. This administration provided loans to small businesses and helped provide funds for privately owned firms. There were a few roadblocks along the way, but small companies started to grow with the help of the community and government.

The rise of Small Businesses

One of the things that gave small businesses exposure was Small Business Saturday. Its purpose was to be the opposite of Black Friday and Cyber Monday. Small Business Saturday was first observed in 2010, and American Express sponsored and promoted the first event. American Express cardholders also got money back when they used their cards to make small business purchases. In 2016, approximately 112 million people shopped at small businesses during Small Business Saturday.

Over 480 organizations joined the Small Business Saturday Coalition, and 72% of American consumers knew about the holiday. This was positive for small businesses and gave people the initiative to participate.

History of eCommerce / Small Business Website

Shopping is one of the most popular activities done online. Websites like Amazon have wildly succeeded because they cater to online audiences, but how did it start? Buying and selling online or e-commerce dates back to 1991. During this time, the Internet was open for commercial use. E-commerce had a different meaning which was the process of commercial transactions electronically.

While e-commerce was possible at the time, it wasn’t safe. Security protocols like HTTP took a few years to create an ideal shopping environment. By 2000, major companies started popping up on the World Wide Web. Shopping on the Internet was proven very successful because, by the end of 2001, around $700 billion in transactions were made! At this time, the meaning of e-commerce started to form into what it is now.

Small Business Website Benefits

A small business must be online and have effective online marketing strategies to survive. For example, a small business website, online marketing, and SEO are necessary. In fact, in 2013, a survey was conducted, and it was found that 36% were US shoppers, and 45% of UK shoppers shopped online for the holidays. By 2015, it increased to 61% of US and 71% of UK shoppers. Hence this clearly shows that an increase in online shopping is expected as we move forward.

Businesses can make their products and services accessible to this growing market with eCommerce services. Companies can provide a wider variety of products and reach a bigger audience.

The Internet’s Influence on Shopping

The influence on one another is a significant positive outcome between both. Having a Small Business Website run through the web is an excellent investment. It gives your customers options and makes you more visible. A study by GE Capital Retail Bank in 2013 found that 81% of people look at products online before purchasing them in a store. Just the previous year it was only 20%.

People depend more on the Internet to make the right purchasing decision. The Internet houses other customers’ reviews, companies’ advertisements, and other products. 81% of people take their time with their research. They spend about 79 days gathering intel about a product before making a big purchase. Putting a small business online can increase customers’ options when making online purchases.

Small Businesses Going Large

Apple is a company that many people are familiar with, but did you know it started very small? In 1975, Steve Jobs and his friend Steve Wozniak started Apple in Jobs’ parents’ garage. They just started with an idea and a passion for computers, and something as small as a garage company became huge. Now there are all kinds of apple gadgets that people swear by. Apple is one of the world’s largest tech companies. Steve wasn’t aiming for this when he started in that garage.

Summary

What’s considered a small business? Is it how much you sell or the profit you make? Only having one location and dealing with locals? Small businesses are privately-owned corporations, partnerships, or sole proprietorships. It goes well beyond buying and selling items on the Internet. Also, it is about using information, technology, and resources to conduct business online.

It is also about the bond that small companies and customers make. Those relationships are what bring customers coming back to support these businesses. While people cherish this, we move forward in a technology-driven world that loves to consume. Small businesses and the Internet joining forces are a big step in the right direction.