E-Biz.com: Strategies for Small Business Success
by Joanne H. Pratt, 2002.  pages.
Joanne H. Pratt Associates. Dallas, Texas 75219
under contract SBAHQ-00-C-0004
This Small Business Research Summary (ISSN 1076-8904) summarizes one of a series of research papers prepared under contracts
issued by the U.S. Small Business Administration’s Office of Advocacy. The opinions and recommendations of the authors of this study do
not necessarily reflect official policies of the SBA or other agencies of the U.S. government. For more information, write to the Office of
Advocacy at 409 Third Street S.W., Washington, DC 20416, or visit the office’s Internet site at www.sba.gov/advo.
Technology, telecommunications, and the Internet
are changing the way businesses market and provide
products and services. The purpose of this study was
to examine the ways these forces create new oppor-
tunities for entrepreneurs and offer new means for
small businesses to compete effectively.
The Internet stimulates business owners to rethink
their business strategy. The more innovative entre-
preneurs—the early adopters—see the Internet as a
way to market niche products and reach distant cus-
tomers in ways that were not available in the past.
Their pioneering innovations foretell a structural
change in industrial organization for both small and
The smallest firms gain the most by reorganizing
as an e-business. For a small business, revenues
cover the costs of setting up and operating a website.
The power of the keyword search means that a busi-
ness can target customers who need niche products
without the wasteful expense of mass mailings.
Instead, customers find them. Finally, small business
owners can live in isolated locations and reach cus-
The Internet offers unparalleled new opportunities
for small businesses:
• 57 percent of small firms use the Internet.
• 61 percent of those have a website.
A website gives entrepren