Opportunities of Marketplaces in Developing and Increasing the Competitiveness of Small and Medium-Sized Enterprises

Abstract

The rapid, large-scale and radical changes brought by the Internet to the business environment have led to the widespread of e-commerce, and marketplaces play an important part in it. Online sales are a relatively new method of promoting products — convenient and cost saving. Marketplaces include a wide range of online business operations related to sales and services. Information about suppliers becomes available to a wide range of people. E-platforms users can manage their communication regardless of the time and territorial remoteness. Buyers are able to choose goods and services, view their characteristics and make orders anywhere where they can get Internet access. Marketplaces can be used as a strategy of rapid business growth for small and medium-sized enterprises (SMEs). Ignoring electronic markets is a serious threat to the competitiveness of SMEs, excluding the potential opportunities to expand the target audience, reach new markets and facilitate trade across regional borders. The study examines the essence of marketplaces, their value for SMEs, the advantages of trading on e-platforms and the barriers that prevent it. Understanding the driving forces and obstacles on the way of e-commerce development stimulates introduction of marketplaces in the SMEs environment. The paper can be useful for managers, as well as researchers studying the impact of e-commerce on SMEs development