By Phil Watlington

Thanks to globalization and the communications technology of the Internet, small businesses now have the world at their door. These two powerful forces provide small businesses access to virtually all markets and consumers on Earth.

The Internet provides a global desktop communications medium capable of reaching potential customers and suppliers locally, as well as in the remotest regions of our "global village." Globalization-generally defined as the freedom and ability of individuals and companies to initiate voluntary commercial transactions with residents/businesses of other countries-and the Internet are breaking down barriers to trade, fostering consumerism and driving cross-border commercial transactions and capital investments.

New Markets
For example, unprecedented opportunities exist for selling and sourcing products and services in the developing nations of China  (with its 1.3 billion residents) and India (the world's largest Democracy and English-speaking nation with 1.1 billion people). To bring the size of these markets into perspective, the population of the United States is just 300 million, or about one-fourth the size of either of these countries.

Countries across Eastern Europe, namely those that comprised the former Soviet Union, also represent huge new markets for products and services offered by small businesses. It is hard to believe that the former Soviet Bloc countries and communist China are showing signs of capitalism, democracy and consumerism. But, it is happening. And, small businesses can (and must) take advantage of these huge and fast-growing markets to improve their top line sales and bottom line profitability.

E-commerce Economy
Studies show that 75-80 percent of all small businesses in the U.S. today engage in some form of e-commerce-either "business to business" or "business to consumer." The percentage is expected to grow to 90 percent in the near future, driven primarily by "baby boomers" starting online businesses, as well as the subsequent generations who are even more Web-savvy.

And, according to a joint study by BusinessWeek and the Boston Consulting Group, 37 percent of small businesses are now doing business globally. Futhermore, 40-50 percent of small businesses now have Web sites. Having a Web site in today's new global economy is advertising to the world.

Sooner or later, companies with Web sites attract international customers who, in turn, drive them to become global companies. The best news, though, is that a study by Booz Allen & Hamilton Consultants indicates that e-marketing/advertising costs about 25 percent of what conventional marketing/advertising costs. And e-marketing/advertising generates 10 times more sales for approximately 10 percent of the advertising budget.

Yet, there are still some small businesses that incorrectly assume:

• Globalization and the Internet will have no impact on their business
• Globalization and "e-business" are actually hurting their business and the overall economy
• They simply cannot compete with large companies in global markets

However, now that the global e-commerce playing field-upon which the games of buying and selling products and services are played-has been competitively leveled by globalization and the Internet, small businesses can now survive and thrive in this ever-changing global environment.

Today, Americans who run small businesses-like entrepreneurs of the past-are once again reinventing themselves as the transition to a new global economy picks up momentum and the "Web generation" comes of age. Will you, as a small business leader, catch this historic wave of change and lead the way to a new global community and economy that benefits all? Or, will you fall victim to the rising tide of despair? The world is at your door. It is a door to your future!
 

Phil Watlington teaches finance, managerial accounting and strategic planning through the University of Phoenix and is a senior manager at General Electric Company. He is the author of "The World Is At Your Door." You can reach him at (913) 491-1885 or .