Electronic Business Constraints
Although many entrepreneurs would like to join the electronic business model, there are certain barriers that prevent this process. Some of these barriers are within their control and all they have to do is change their working practices in order to achieve the electronic business dream.
On the other hand some of these barriers are totally external in their origin and it is very difficult for the entrepreneurs to control their dynamics. In working with the electronic business model it is important that the companies are aware of these barriers so that they can take the necessary steps to protect their business interests and introduce rationality in the way that they deal with the electronic business model.
Once one understands the things that might prevent them from enjoying the benefits of the electronic business model, they can then come up with strategies to ensure that in the future they are at the forefront of getting to achieve this objective. This article aims to look at the general constraints that affect the full implementation of the electronic business model:
- Funding is often cited as one of the major obstacles to small businesses joining the model. This is particularly true if they are operating within the context of less developed economies that cannot sustain certain areas of work despite the best efforts of the people who are working in them. If the small business would like to implement the ebusiness model, they might have to go out for a loan and the lenders might not be too enthusiastic about their bid. Therefore one can say that money can prevent people from joining the electronic business model.
- The lack of awareness is also a contributory factor in the suppressed uptake of the electronic business. Some entrepreneurs are not fully briefed about the specific benefits that they can get from an implementation of the electronic business model. In that case they will not bother to go for the challenging tasks of implementing the scheme when they know very well that they have limited chances of success in this area. In working with the electronic business the people might start to appreciate what the model can do for their businesses.
- Government restrictions can play a part in reducing the full implementation of the electronic business model. These restrictions range from the sublime to the ridiculous. Sometimes the government can tax the very equipment that is going to build the businesses that they are trying to promote. This increases the costs of implementing electronic business and ensures that a whole set of entrepreneurs are discouraged from trying out the electronic business model. This is the irrationality of government policy that has often proved to be a powerful hindrance to economic activity and prosperity. It would take the experience of a manger with a good base knowledge of the electronic business model to convince the state that they really need to keep their noses out of the implementation. Sadly this is not always possible.