Facilitating Growth in Economy with the Advent of New Technology
Date: Monday , April 11, 2016
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In our modern fast-paced world, where people and their surroundings are constantly evolving, economic growth has been a major contributing factor in promoting a nation\'s progress and stability. Over the years, major economic meltdowns caused by war, famine, or other worldwide issues demonstrated the predicament as well as ability of different countries to bounce back from varying levels of shift in economic growth. One of the most important factors that have contributed to economic growth and development is the advancement of technology. It has been observed over centuries that technological innovation, or the lack of it, can make or mar an individual, an idea or a nation\'s ability to stand out and be a front-runner in the race to development.
Information and Communication Technology (ICT) is a relatively new and broader expression for Information Technology, which refers to the usage and amalgamation of various telecommunicating and computing devices such as wireless signals, audio-visual systems, and telephone lines which can be linked through a single cable network. ICTs have been advantageous to various sectors like business and education by facilitating greater growth possibilities and promoting development. Many businesses today use some form of ICT to expand their reach into different horizons and reach a wider audience.
Most developing countries have access to modern technology nowadays, which has assisted them in boosting their developmental goals as well as providing better standards of living for their citizens. Additionally, they have been encouraging local brick and mortar businesses to utilize this power in pursuance of greater success and maximum profits. Entrepreneurial ventures or startups are a great way of optimizing latest technology and reaching out to customers across geographical borders. Such small businesses also help in creating job opportunities, and have a contemporary method of selling their products with various technological assistance.
Peru, which has one of the best GDP growth rates among developing nations, is helping its small and medium enterprises (SMEs) by introducing them to new technologies which can help grow their business. According to a study done in 2014 by Peru-based consultancy firm, Ipsos Peru, small and middle-sized companies which adopted Information Technology as a means to expand their business showed greater growth potential and those businesses grew by 18 percent in three years.
More and more SMEs are getting influenced by technology as it provides many benefits to their businesses. Nowadays, it is mandatory for most business ventures to have an online presence to reach out to more customers and be more successful. Various services are freely and easily available on the internet today which help both businesses and their customers in meeting each other\'s needs.
Businesses can now offer their services by just signing up in one place, irrespective of their geographic location. It enables them to reach a wider audience without compromising on their budget and it also helps in increasing their visibility. From a single virtual gateway, a business can be exposed to a large audience as well as compete with other players. This also gives the companies a better perspective of where they stand among the competition.
Information technology has helped in cost reduction of businesses, thereby allowing them to increase their growth and profit effectively. With a virtual store, companies can reduce personnel costs as well as cost for rental. Cost reduction allows them to put in more effort in customer service as well as order management. Additionally, this reduction in cost helps in offering discounts and relatively better prices to customers who are accessing the services online.
Having online presence can help businesses in optimizing their inventory. A virtual store can provide customers with a full showcase of its products and services. This helps in reducing the cost of keeping a large inventory and in providing customized services. That way, they only need to provide what the customer orders. Having a virtual store also helps businesses stay open 24/7 for their customers. They can access the services of the company at any time of the day. A consumer can access any service from anywhere without any geographical restrictions.
One of the latest advancement in technology is that of Mobile Integration, which provides all kinds of online facilities on a mobile phone. This new technology has helped usher in a new era of holding the world in the palm of one\'s hand. Businesses can now reach out to their customers across various computing devices and vice versa.
According to latest internet statistics, almost 40 percent of the world population has access to the World Wide Web, which is a sharp contrast from a meagre 1 percent twenty years ago. People can now use internet on the go across different platforms, while entrepreneurs have been able to expand their businesses and reap more benefits. Advent of new technology has been instrumental in promoting economic growth and development across nations, and by continuing to assist and motivate SMEs, it will only progress further, helmed by constant innovation and better opportunities.