Almost two-thirds of the entrepreneurs surveyed said the revenue generated through their Web sites justified the establishment and running costs. Len Gould, founder of Creative Informatics, says Internet development is an act of faith. Forty-nine per cent said globalisation is having a significant to very significant effect on their business. They lack the exposure of the younger people to the enormous changes in technology, and the benefits that can flow from that. John Hay Globalisation is being felt in many ways.
Entrepreneurs report increased competition from overseas companies entering markets in Australia.
International companies have also been buying small and medium companies, reducing the number of clients in the market. Smaller companies that cannot afford to advertise extensively are reaching wider markets over the Internet. Retrenched middle managers who are starting their own businesses are driving profit margins down, particularly in the service industries. Entrepreneurs say they are under pressure from competitors to operate at world-best practice, and only companies with superior performance and clear differentiation will survive. One entrepreneur points out that the research and development funds required for maintaining world-leading technology means that companies must enter overseas markets to achieve economy of scale.