This report focuses on the growing number of small businesses in the US that can now do business internationally thanks to Internet advancements.
This report focuses on how small businesses around the world, but particularly in America, are for the first time able to reach a broad customer base. No longer inhibited by traditional infrastructure, the internet has allowed for the formation of “micro-multinationals”. Micro-multinationals refers to small businesses that export their products internationally. This study explores the growth of US based micro-multinationals on the eBay platform over the course of 10 years.
The study concludes that there are four trends within this group: 1) small businesses are exporting their products outside the U.S.; 2) unlike most traditional businesses, eBay small businesses continue to survive while exporting their goods; 3) the internet is creating a more inclusive economic model as it provides inroads for small businesses to enter into the global market, which was traditionally reserved for larger companies; 4) reduced barriers to trade as eBay and the internet have helped to bypass traditional barriers of entry for small businesses into the global arena, such as language and customs.
The report concludes with suggestions to allow for the continuation of growth of small businesses in the global market through the platform of the web. These suggestions include raising de Minimis levels, which will remove friction from customs in trading for small businesses. Also modernizing and harmonizing postal regimes, which are still made predominantly for domestic not international use. Third, protecting intermediaries against third party liability and finally, tailoring government programs to fit the needs of micro-multinationals.