Online competition between SMEs is hotting up, it has been revealed.
Research conducted by Cranfield School of Management suggests that the internet has bestowed one great advantage - it is now easier to enter the marketplace.
However, this means that competition is now more rigorous than before, with 46 per cent of SME owners saying that running a business is more complicated as a result.
Having said this, heightened competition means that SMEs are now more adept than ever.
“There is no question that the internet has enhanced the performance of SMEs,” commented Professor Andrew Burke, head of the Cranfield School of Management.
“The sting in the tail is that the uptake in internet use by SMEs has been so dramatic that most now share these same benefits and so few can garner a competitive advantage as a result.”
Foreign as well as domestic competition is to blame, with 62 per cent of the 422 SMEs polled saying that competition from foreign traders had increased.
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