Abstract
<p>This study aims to examine factors contributing to societies’ tendencies to choose online shopping, the characteristics of e-commerce needed by societies and obstacles faced by MSME in handling business competition. E-commerce is a set of dynamic technology, application and business process which connects certain companies, consumers and communities through electronic transaction. Trade of goods, services and information is performed electronically. The development of E-commerce system for MSME aims to change its culture which still relies on conventional purchasing into online shopping, improve MSME’s sales in order to promote, market and sell products to internet users through website without any space and time limits. The research subjects are people involving in MSME and communities of Jebres village, Surakarta. This study applies qualitative paradigm. The research subjects were taken using purposive sampling techniques. Data were collected using various techniques: structured interview, questionnaire, observation and content analysis or archive analysis. Data were later analyzed using four stages, namely data reduction, classification, data presentation and verification.</p>
Highlights
Globalization and free trade are challenges for Micro, Small and Medium Enterprise (MSME) to maintain its existence
The results of the interviews reveal that 36% of MSMEs around areas of UNS got to know E-commerce, 38% make use of E-commerce for online transaction and 33% are aware of benefits of using E-commerce (Table 8)
The present research shows that societies are enthusiastic about the use of E-commerce and many consumers start to shop online considering its easy process and time efficiency
Summary
Globalization and free trade are challenges for Micro, Small and Medium Enterprise (MSME) to maintain its existence. If MSME does not quickly get ready, it is feared that it can’t compete in the market place and later will go out of business. This is so for MSME plays significant roles in developing economy in many countries around the globe (Ramanathan et al, 2012). Information technology offers many advantages for MSME to improve its productivity and marketing, as well as increase its opportunity to cooperate with other business players (Neti, 2011). MSME plays important roles in creating job opportunities and developing the economy. The effects of globalization on the development in new business environment created by globalization are highly important for developing and developed countries (Savrul et al, 2014)
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