Micro-Entrepreneurship in the Internet - Research direction

Introduction

Micro-Entrepreneurship is an important and relevant topic, as it is really a stepping-off direct for new entrepreneurs and innovative businesses. Technically defines micro-enterprise as smaller business unit, characterized by fewer than 10 workers, although it is quite common that initially starts with a volume of annual turnover under 2 million. According to Hisrich and Peters (1998, p.9) entrepreneurship is defined as the process of creating something new with value by devoting the essential time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence.

The definitions of entrepreneurship are varied, but in general include the ability to create, innovate, bear risk, manage and achieve targets (Jennings, 1994, p. 12). Until not long ago to set off a business required a significant investment and take risks that could considerably affect the economics of entrepreneurship.

Fortunately, with the business opportunities folded in the Internet, a worldwide phenomenon of micro internet entrepreneurship is growing. Proof of this is that there are thousands of micro – entrepreneurs around the world that are establishing their own online business every day. Entry costs are very low or almost zero and the benefits and life style are appealing.

Rationale

As our economy continues to globalize and the internet makes it easier to start a business, there will be an increased number of workers making the transition from employee to contractors and micro – entrepreneurs. It is a trend that is being implemented in society and in a few years that will change the way we work and do business. A new era opens the possibility to generate income and become self-sufficient to have just anyone with a PC and an Internet connection. However, there are also challenges in initiating and managing a successful online business and those will be explored in this research project.

References

Bryman Alan, 2008, Social Research methods. Third edition, Oxford University Press

Creswell John W, 2007, Qualitative inquiry and research design, Second Edition, SAGE Publications, UK

Hisrich , R. D. and Peters, M. P., 1998, Entrepreneurship (4th Edition) Boston. McGraw Hill.

Jennings, D.F, 1994, Multiple Perspectives of Entrepreneurship: Text, Readings and Cases. South-Western, Ohio, USA.

Simpson Poon, Paula M.C. Swatman, (1997) "Small business use of the Internet: Findings from Australian case studies", International Marketing Review, Vol. 14 Iss: 5, pp.385 - 402

Marketing Strategies as a Micro-Entrepreneur

Marketing as Micro-Entrepreneur

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The effectiveness of Cause Related Marketing (CRM) on E-commerce

My latest research topic was the effectiveness of cause related marketing (CRM) on e-commerce. In 2009 alone, $1.57 billion was spent on cause marketing. And as marketing, communication, fundraising, and shopping transition to an entirely online world, the aim of this study was to examine if online CRM has an influence on customer perception and purchasing behavior.

According to the survey, almost 80 percent would switch brands, similar in price and quality, to one that supports a cause and more than 50 percent would be willing to purchase a more expensive brand if the brand supports a cause of interest. Israeli’s appreciate CRM activities and 95 percent believe a company has a more positive image when it supports a cause and almost 70 percent agree that more online companies should be involved in CRM.

Some key success factors for affective online CRM strategy were identified. First of all, based on the survey, security and credibility of the website are the most critical elements that influence online purchasing decision. Price is also an important factor as can be expected.

There seems to be a gap between the subjective norms of the respondents and how they perceive CRM. On one hand, they appreciate companies that involve in CRM and agree that more companies should engage in CRM. They would try new brands and some would even pay more for products that supports SRA but on the other hand 80 percent think that companies that are involved in SRA act out of self-interest and SRA is not an important factor when purchasing online.

On the other hand, with a contradiction for the above findings and conclusions, based on the survey when asked what is important to you when purchasing online, CRM was rated the last one from all the 11 variables. A possible explanation for this is that the combination of e-commerce and CRM is not widespread in Israel and educating the skeptical Israeli market is essential. Explaining the values and advantages behind this approach can be beneficial both to consumers, business involved and obviously to the cause itself.