Impact of Technology on Small Businesses Essay Example | Topics and Well Written Essays - 2750 words

Impact of Technology on belittled Businesses - endeavor ExampleIn the present paper the impact of applied science is critically analyzed to understand whether adopting engineering science in its various forms is profitable to small businesses or not through qualitative research methodology. Small businesses drive the economy by leading in innovation and very crucial for national economies because of their super contribution in terms of employment and turnover (Burns, 2007). Small Medium Enterprises (SME) according to the Bolton committee is outlined as an independent local firm whose ownership and management is vested in the same individuals and market contend is small. A firm is termed as SME when it meets two of the three criterias namely consisting up to 250 employees, up to 50 million annual turnover and 43 million annual statement of financial position tot up as given by the European Commission of 2003 (Amm, 2011, p.1). Small businesses like large firms, in their operatio ns try to apply latest technologies in order to be competitive, knowledgeable, more efficient and eventually more profitable (Kierman, 1995). However it has been found that technology is also negatively affecting the small businesses by diminish the personal aspect of the business relationship, surveillance and constant monitoring using technology is decreasing employee team spirit and productivity significantly and brick and mortar small stores are losing their market share to large companies who use technology extensively (Hanley, 2013) moreover technology brings change that might not be adopted well by employees and is expensive and keeps changing (Keirman, 1995 and Burgess, 2002). SMEs compared to big firms respond quickly to market threats and opportunities because they are more market-driven than larger firms who are more research driven. And use innovative technology or technology innovatively in exploitation new markets and about ten percent of SMEs are technology based and can be termed as innovative.