Effects of the Internet on Business

internet on business

Coming into the 21st century, the way a business runs has changed drastically.

We don’t live in the era of word-to-mouth marketing anymore. The advancement in technology is thriving and so is the way people do business.

Businesses don’t have to depend on their local customer base for survival anymore. The internet has allowed business to grow globally and also keep a better track of their customers and employees.

Today, it is both easier and harder for a business to grow and prosper. The internet has made it easier for business leaders to figure out ways to run their businesses.

But it has also set a lot of competition and difficulties in front of them. Due to which they’re forced to adopt the modern ways of running a business.

And if someone fails to adapt, they’ll witness their business falling behind.

Internet always has both the good and the bad side to it, no matter if it’s related to your business or your personal life. It has changed the business industry for both good and bad.

And if you can keep up with the constant change and evolution of technology, you’re sure to run a perfectly profitable organization.

Positive Impact of the Internet on Business.

In today’s fast-pacing life, internet plays a big role in business. It not only helps a business reach out to the target audience but also have better communication with the employees.

There are a number of positive impacts the internet has on the business industry.


The Internet is globally available which means your business can flourish globally if you take the right steps.

With easier marketing strategies and better audience reach, it helps you bring out the best in your business.

With the help of the internet, you’re not just selling your product locally and reaching a limited audience. Your business has the power to impact a wider range of audience, that too, on a global level.

Hence, the internet helps make your business visible and let customers have easy access to reach out.


Since everything on the internet is visible, it helps you figure out how to and how not to run your business.

And with better marketing skills and great customer service, you are able to make a personable impact on your customers. Hence, you have a great image of your brand in front of all your rivals.

Once you build a brand with a positive image, it’s easier for your business to get better collaboration deals with influencers that help take your business to another level.

Easier Entry.

In the past, it was really hard for a new business to make its mark in the industry. Unless you were well-known and established, you could wave goodbye to the thought of profiting in a short time.

But today, the scenario is totally different. New businesses have an equal chance to prosper and compete with their older counterparts.

The cost of starting a new business in relatively low today than what it was when the internet didn’t take over. You don’t necessarily need an office space to run a business.

And so is the cost of online marketing and advertisements. This helps small businesses run independently and big industries to get even bigger.

Better Research.

The main reason for the invention of the internet is easier access to information. So, there is no doubt that you’ll have all the information you’ll need to run and grow your business.

With better research facilities, the internet helps you identify your niche and understand your customers better.

You’ll know the needs of your customers as well as the fluctuation in the market. Hence, it’ll help you focus more on what’s lacking and find ways to make it better.


It’s a known fact that businesses run smoothly if it has good investors. But investing in a business is risky and many-a-times complicated.

But, thanks to the internet, investing in a business has become easier and more subtle.

Due to the internet, it’s easier for a company to track its profit and loss records. It also helps potential investors to know exactly what they’re getting into.


Negative Impacts of the Internet on Business.

Like everything in this world, the internet also comes with a bunch of setbacks. And for businesses, these setbacks can very much ruin the whole image of the company.

Here are some of the negative impacts the internet has on businesses.

Security Threats.

Not everything you do online is safe. Your company is surrounded with so much security threats that if you don’t act on it immediately, you might lose it all.

The Internet is filled with hackers waiting to hack into your system and mess up your smooth running business.

It takes no time for hackers to steal and expose sensitive data and greatly damage the entire company. So, security is a major issue you need to deal while doing business online.

Unnecessary Competition.

Healthy competition is always a good thing for any businesses. It helps you to learn and grow along the way.

However, the internet gave a different perspective on competition. Now that the internet has made business on a global level possible, there is a lot of unnecessary competition one has to deal with.

The sellers are forced to sell their products at discounted rates because there are so many stores selling the same product. And on the internet, whatever’s cheap gets sold.

This does not just affect a small-scale business and drive them out of business; it also impacts big brands and businesses.

Lacks Impersonality.

Thanks to the internet, it’s so much easier for a buyer to communicate directly to a seller and vice versa.

It’s easier for them to give and receive feedbacks instantly and also be clear about what they need.

However, it doesn’t make the purchase easier just so you can communicate easily. There are so many aspects the internet fails to fulfill.

Online shopping can never satisfy a customer like shopping in real life. It lacks impersonality that can turn out to disastrous.


For a business, reputation is everything. It takes a lot of hard work, time, and patience for someone to build a proper reputation for his company.

But it doesn’t take a lot of time for the internet to destroy it.

One little mistake and a few negative feedbacks are all you need to destroy the positive image of your business online.

Influence of Social Media on Business.

Social media has become the most important part of our lives lately. You won’t be wrong if you try comparing social media to the air we breathe.

Since its importance and popularity is growing immensely, it’s also a good idea for businesses to adapt.

Be that as it may, social media is a very powerful tool and it has the ability to either make or kill your business in an instant.

With a great social media presence, you can help your business reach out to more people and spread awareness.

This way your company becomes visible to more people and they’re sure to notice it.

However, if you play this wrong, it won’t take social media to destroy your presence.

Even hundreds of good comments and positive feedbacks can fall short in front of a few negative ones.

So, it is important to know what you’re getting into before you decide to run your business online.

You might find success like no other. But you might also run out of business in no time. Therefore, make sure to make the right moves and also be careful along the way.

About the author


Talks to self, more than others. Watches "the Office" all night and quotes Michael Scott all day.
"I am Beyoncé, always."