E‐business: linking available services and entrepreneurs’ needs

Traditionally, entrepreneurs and small businesses have faced difficulties when competing with entrenched firms for customers and expanding into global markets. The World Wide Web (WWW) is one approach to overcoming obstacles by giving organizations a direct connection to potential customers and suppliers on a global level. However, complex technology, security, and reliability present significant challenges to the entrepreneur or small business owner about to enter the e‐business arena. Difficulties are especially notable when the business operates in a non‐Web‐related field or when it has relatively few individuals with IT (information technology)/Web experience. Facing these challenges alone by hiring or developing an in‐house technology staff and building a support infrastructure is costly and may be risky. An alternative, contracting for Web‐based services from an application service provider (ASP), effectively reduces cost and risk while preserving the competitive advantage of the entrepreneurial firm. This paper describes the use of the ASP concept to allow an entrepreneurial firm to compete effectively in the global market.