The Internet Lowers Market Entry Barriers

 
The internet has completely changed the way business is done, but also has virtually eliminated barriers to entry. “There are no barriers to entry anymore.” says Marc Andreesen, co-founder of Netscape Communications Corporation. Virtual offices and internet marketing are some examples of how the internet has slashed costs for small business and made it incredibly easy for anyone with a great idea to enter any market online.

According to recent study conducted by the Small Business Administration, the emergence of the internet has enhanced opportunity for small business owners in every market, especially for niche players. The costs of starting a business online are lower than ever, making it easy for many people to start a business, with little start-up capital. Also, with the infinite amount of information available on the internet, consumers have more choices than ever, and can easily learn about new businesses through the internet.

Not all barriers have been eliminated. A few factors may still impose certain barriers for online businesses, like marketing costs and keeping up with technology. The internet also increases the importance of branding. However, these barriers are small indeed compared to the barriers overcome by the emergence of the online business. It's easier than ever to get into pretty much any business today than it ever has been, thanks largely to technology.