An analysis of the use of the internet by micro-businesses in Malta

Abstract

This dissertation analyses how micro-businesses in Malta have adapted to using the internet as a tool to help them compete with other, especially larger, firms. This dissertation investigates the notion that smaller firms are slower to adapt newer internet-related technologies and use them to their advantage, because they are usually ‘followers’ of the larger firms and are refrain from investing in newer technology due to various constraints such as limited resources and lack of knowledge. This dissertation studies how the internet is used by local micro-businesses, and how effective these found by their owner-managers. In order to do so, various journals, books, online articles, local statistics and more literature were reviewed, and a case study research approach was adopted, where 10 owner-managers of micro-businesses from the pet and electronics industry were studied. These respondents’ level of internet tool usage was identified, and reasons why they have, or have not, adopted certain internet tools were recognized and examined. This dissertation analyses if and why local micro-businesses refrain from adopting certain internet technologies to their advantage, and hopes to help solve these barriers, therefore encouraging micro-businesses to practice benefits realisation management to use the internet both efficiently and effectively. The general findings from this dissertation include that the main uses of the internet by micro-businesses are social media, especially Facebook, Email, and website. Online advertisement, especially on social media, is considered to be more cost-effective than other forms of advertisement. Also, by using the internet, micro-businesses are saving lots of time and money. The main threat from the internet to micro-businesses was recognized as that of increased online competition. There is more potential for internet use by micro-businesses, such as Cloud services, but restrictions especially lack of time and resources keep them from doing so.