Advancing Rural e-Commerce

Jean PlymaleVirginia Tech eCorridors Programwww.ecorridors.vt.eduApril 18, 2005

e-Commerce?

• Electronic commerce. Often referred to as simply e-commerce, business that is conducted over the Internet using any of the applications that rely on the Internet, such as e-mail, instant messaging, shopping carts, Web services, UDDI, FTP, and EDI, among others. Electronic commerce can be between two businesses transmitting funds, goods, services and/or data or between a business and a customer. http://e-comm.webopedia.com/TERM/e/electronic_commerce.html

• Electric commerce: the conducting of business communication and transactions over networks and through computers. Specifically, ecommerce is the buying and selling of goods and services, and the transfer of funds, through digital communications.www.wda.org/Public/help/glossary.htm

• The process of selling products or services via the Web.advertise.sympatico.msn.ca/Glossary/

• Internet facilitated commerce, using electronic means for promoting, selling, distributing, and servicing products.www.stile.coventry.ac.uk/cbs/staff/beech/BOTM/Glossary.htm

• Electronic commerce or e-commerce consists of the buying, selling, marketing, and servicing of products or services over computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions. en.wikipedia.org/wiki/ECommerce

Why Focus on Small Business?

• Small businesses represent the economic heart of a community

• Strategic assets to our national economy

• Essential to recovering our global competitive edge. Made in America!

• Play a key role in the process of technological change (innovation)

• Can effect the process by which local industry evolves

• Key factor for growth and sustainability for most communities.

• The presence a large number of small firms is indicative of an abundance of entrepreneurial talent

• Entrepreneurial talent can change the direction of the local economy

Sources: Acs, Zoltan J., Audretsch, David B.1990. Innovation and Small Firms. Cambridge MA: The MIT PressBirch, David L. 1987. Job Creation in America. New York, NY: The Free Press

Advancing e-Commerce Capabilities

• Affordable, always-on (non-dialup) high speed Internet connections

• Sufficient, symmetrical bandwidth per user, to support the full range of emerging, converged data, voice, and video applications

• Scalable bandwidth options

• Free access in public spaces can generate business for indoor spaces

• Training programs to provide current business the opportunity to learn about and try new business practices

• Entrepreneurial training programs to encourages a new generation of people interested in new business development

e-Commerce in ActionExamples from Blacksburg Va.

Keith Roberts owner of Vintage Cellarhttp://www.vintagecellar.com

High Speed Ethernet Available www.chasemanagement.com

From Dorm to Success

• Sells thousands of products – No inventory!

• Each week the Bowl Championship Series (BCS) relies on Massey ratings for college football rankings

Kenneth Massey, developer of Massey Rating System www.masseyratings.com

Willie Jester, CEOwww.buycollegestuff.com

Dependent on High Speed http://www.nanocom.com/

“…providing affordable, cross-platform video chat and conferencing software...

“Our videoconferencing business depends on high speed, broadband access.”

http://www.exemplum.com/“Interactive product

demonstrations provide new ways to deliver product information…”

“Without high speed network access, we wouldn’t be here.”

nanoCom founder and President, Bob Summers

Regional Advantage

• >3000 small businesses in the Danville MSA (VEC)

• Highly developed work ethic • So many small firms offer area residents hope for employment

outside the traditional options

• Small firms can potentially be the mechanism for job growth in the area if the region can foster the right environment including quality, affordable IT options

• Small businesses in the area stand to benefit from sound, innovative IT policies and infrastructure

e-Commerce Transition and Tradition

• The Dan River Region is highly dependent upon the economic well-being of dominant industries; Tobacco, Textiles, and Tires.

• e-Commerce should enhance the existing economy while adding new opportunities for diversification.

Important Considerations

• Do rural areas have the technological infrastructure in place to facilitate e-commerce activities?

• Do local governments understand that e-commerce can play a vital role in making the global marketplace available to local firms?

• Do economic developers have the knowledge and educational resources needed to provide support?

• Do rural small businesses understand how e-commerce can be utilized to improve business activities?

Questions and/or Comments?

vplymale@vt.edu

540-231-2270