DISSERTATION

On

IMPACT OF E-COMMERCE ON SMEs RETAIL BUSINESS

By

Bhavya Pande
A0102215078

MBA Class of 2017

Under the Supervision of

Dr. Garima Malik

Associate Professor
Department of Marketing & Sales

In Partial Fulfilment of the Requirements for the Degree of

Master of Business Administration Marketing & Sales
At

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

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 DECLARATION
I, Bhavya Pande, do hereby declare that the project entitled Impact of e-commerce on SMEs
retail business has been undertaken by me as part of my studies in the degree of Masters of
Business Administration (Specialization of Marketing and Sales) of Amity University, Noida. I
have completed this study under the guidance of Dr Garima Malik, Associate Professor, Amity
Business School, Amity University, Noida.

I declare

(a) That the work presented for assessment in this Dissertation Report is my own, that it has not
previously been presented for another assessment and that my debts (for words, data, arguments
and ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.

(c) The Plagiarism in the report is 6% (permissible limit is 15 % )

Place: Noida
Date: Bhavya Pande

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 CERTIFICATE
This is to certify that Bhavya Pande student of Masters of Business Administration M&S at
Amity Business School, Amity University Uttar Pradesh has completed the Dissertation Report
on Impact of e-commerce on SMEs retail business, under my guidance.

The report has been checked for Plagiarism and is within limits of acceptance.

Place: Amity University, ABS, NOIDA

Date: Dr. Garima Malik

Associate Professor
Department of Marketing & Sales

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 ACKNOWLEDGEMENT
I am indebted to many people who helped me accomplish this internship successfully.

I thank Dr. Sanjeev Bansal, Director and Head (Amity Business School) and Department of
Amity Business School for their kind support.

I thank Dr Garima Malik, my mentor, for her support and guidance during the course of my
project. I remember her with much gratitude for her patience and motivation which assisted me
in my project.

I thank my parents and sibling for their blessings and constant support, without which this
project work would not have seen the light of day.

Bhavya Pande

Enrollment No: A0102215078

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 TABLE OF CONTENTS

Declaration i
Certificate ii
Acknowledgments iii
Table of contents iv
List of Charts/Graphs v
List of Tables vi

1-20
Chapter 1: Introduction

Chapter 2: Literature review 21-28

Chapter 3: Research Methodology 29-31

Chapter 4: Data Analysis and Interpretation 32-44

Chapter 5: Findings , conclusion and Limitation 45-47

Reference vii
Appendix viii

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LIST OF FIGURES PAGE NO.

Figure 1: e-business, e-commerce & i-commerce

4

Figure/ Graph 2: Indian online retail revenues

7

Figure/ Graph 3: The status of e-commerce among Indian MSMEs (MSME insights), 2014 15

Figure 4: e-commerce barriers in SMEs in India

18

Figure 5: Independent and Dependent variable for E-commerce Usage

30

Figure 6: Age of the respondents 32

Figure 7: Gender of respondents

32

Figure 8: Education of respondents

33

Figure 9: No of people engaged in the respondents firm 33

Figure 10: No of year respondents firm has been in business 34

Figure 11: Respondents firm using e commerce platform 34

Figure 12: Employees waste their time

35

Figure 13: Uncertainty about internet security

35

Figure 14: Maintenance is difficult and expensive

36

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Figure 15: Business partners and customers are not using the internet 36

Figure 16: Internet cost is too high

37

Figure 17: Purpose for using e-commerce 38

Figure 18: e-commerce enhances overall value of the firm 38

Figure 19: Value that e-commerce adds

39

LIST OF TABLES PAGE NO.

Table 1: Five different categories of e-commerce applications

2-3

Table 2: Asia Pacific Online Retail Forecast, 2011 To 2016

8

Table 3: SMES Classification 12

Table 4: E-commerce and its meaning

21-24

Table 5: Reliability of questionnaire- Cronbachs alpha 31

Table 6: Correlation
38

Table 7: Model Summary

40

Table 8: ANOVA
41

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Table 9: Coefficients
41

EXECUTIVE SUMMARY

E-Commerce is the commercial transactions conducted electronically on the internet. A great

deal of efficiency and productivity increase has been achieved in the production process through
the use of information and communication technologies (ICTs) in recent years. These
developments have created remarkable opportunities for the small and medium size enterprises
(SMEs) whose advertising and marketing budgets are relatively limited. A survey was carried out
with a sample size of 50 SMEs in Delhi, NCR and Lucknow in order to find out the present use
of e-commerce in the SMEs, its perceived advantages, potential problems and what impact e-
commerce have on SMEs performance. For the present study the usage of e-commerce by SME
was dependent variable and perceived ease of use, security, perceived usefulness, company
readiness were independent variable which was taken based on literature review. The results
reveal that the firms are aware of the fact that e-commerce provides them with more of security,
ease of use exists, and the users of e-commerce see the usage of e-commerce as very useful
platform to grow their business. E-commerce platform provide competitive advantage, enable to

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reach the customers easily and expand the markets. The main reasons why the SMEs are not
able to use e-commerce platforms are found as the lack of information and specialized personnel,
security threats, maintenance cost, business partners and customers not using the internet and
internet cost is being too high.

Even if some companies still consider the cost factor as most important this is because of
insufficient understanding for e-commerce and the positive effect of it. This in turn leads to non-
consistency or stopping the process of innovation. Thus company readiness should exist in order
to accept the change in a positive manner.

Using statistical analysis it was clear that perceived ease of use, security, and perceived
usefulness were significantly co-related with company readiness. If the company has adequate
trained personal and infrastructure (applications and software) than they will find e-commerce
platform to be productive.