E-commerce is globalization’s shot at equality

January 19th, 2020 – Small businesses have global potential thanks to e-commerce. SMEs active on the internet export more than traditional businesses. Heightened economic activity can especially benefit women.

Globalization got a bad rap in part because, by sweeping aside barriers to the movement of capital, labour and goods, it was perceived to have favoured large corporate interests over all others.

With the unfolding e-commerce revolution, however, a fairer and more inclusive balance is reshaping the global business environment to provide more room and opportunity for small businesses, especially those headed by women.Globalization got a bad rap in part because, by sweeping aside barriers to the movement of capital, labour and goods, it was perceived to have favoured large corporate interests over all others.

With the unfolding e-commerce revolution, however, a fairer and more inclusive balance is reshaping the global business environment to provide more room and opportunity for small businesses, especially those headed by women.

E-commerce: small business accelerator

Today, small businesses – even one-person “social sellers” – can run as global entities thanks to the growing availability of inexpensive digital tools that allow them to source, ship, deliver, pay, collect and virtualize other key aspects of their operations. The fast-developing e-commerce ecosystem, which includes marketplaces, payment gateways and online logistics, is helping to reduce barriers to trade across borders.

Export participation rates for traditional small businesses (those that typically do not sell online) range between 2-28% in most countries. In contrast, 97% of internet-enabled small businesses export, according to the World Trade Organization.

E-commerce: gender accelerator

When it comes to the gender effect of e-commerce, the research is still emerging and much of the data is localized, but early signs are promising.

The International Trade Centre (ITC) has found that despite having less access to technology, women use digital platforms to their advantage. The head of the ITC says four out of five small businesses engaged in cross-border e-commerce are women-owned, while just one in five firms engaged in offline trade is headed by women.

Meanwhile, there is more and more evidence to show how e-commerce and digital technology are bringing women to the fore of global trade.

More…https://www.weforum.org/agenda/2020/01/e-commerce-sme-globalization-equality-women/

Written by World Economic Forum