A business owner's perspective on globalization

Globalization can be viewed in many different perspectives, positive and negative. It is natural for humans to want to expand and improve their ways of life. In today’s world globalization has allowed people to easily access their wants and needs by simply going on the internet. Many businesses that are a part of this global expansion are benefiting from the internet but it’s the small local business owner’s that are still struggling to keep up.

Customers in today’s economy utilize the internet more than ever. The negative side of strictly using the internet for this purpose is that in most cases this skips over the smaller local business owner’s opportunity to be seen. Larger businesses like Wal-Mart and Target have such an online presence that small business owners can’t afford the marketing money it takes to have their business seen. So the question is how much should a business spend on marketing and advertising? Businesses typically spend a certain percentage of sales on marketing. This percentage can be from .5% up to 10% of sales. For most businesses this is an achievable number but compare sales of a small business versus a business like Wal-Mart. The dollars spent on marketing are outrageous compared to what a small business can contribute. This is why larger businesses are gaining ground and small businesses are struggling. The concepts of customers driving around to brick-n-mortar locations to shop are quickly fading away. The cost of owning a store location versus having your business strictly online is night and day. Creating an online business is very affordable and this is why so many businesses are being forced to go this route.

Personally I am a small business owner. My business is party rental equipment. This type of company does not require a store front but it requires a large effort in marketing online. I constantly feel the pressure to be competitive online and in many cases it can cost more money than it’s worth. I’ve spent large amounts of money marketing online and received poor results due to my competition. Keeping a high ranking online can be very costly and that is why now I typically spread out my marketing with other local options to gain business exposure.

In conclusion globalization has made owning a small business very challenging and competitive. Small business owners now have to choose to convert their businesses to more of an online setting or possibly go out of business while larger corporate businesses continue to grow and increase profit. The future of the small business owner’s are fading away and the rise of large global corporate businesses are here.

Sources:

http://www.businessweek.com/smallbiz/content/feb2009/sb20090210_165498.htm

http://www.buzzle.com/articles/negative-effects-of-globalization.html