PRINCIPLES OF ACCOUNTS

SCHOOL BASED ASSESSMENT

Effects of E-commerce on Small Businesses in our Communities

 TITLE PAGE
GROUP MEMBERS

Sheldon Bedward

Alicia Samuels

Iseanie Morrison

Iana Falconer

Chevaughn Johnson

CANDIDATE NUMBERS:

TOPIC: An investigation to analyze the effects of e-commerce on small businesses in our

communities.

NAME OF SCHOOL

St. Catherine High School

Center Number: 100105

TEACHER’S NAME

Ms. DaCosta- Walker

Territory: Jamaica

Year of submission: 2023

 ACKNOWLEDGEMENT

The completion of this assessment would not have been possible without the dedication and

hard work displayed by the researchers, and parents for pushing the researchers past their

comfort zones to complete this research.

First and foremost the researchers would like to express their utmost gratitude to God, for He

has given us the right frame of mind, strength and has been there from the beginning to end of

this assessment and continues to play a major role in our daily lives.

Lastly, the researchers would like to thank Mrs. DaCosta-Walker for assisting them

throughout the research process.

 TABLE OF CONTENTS

TITLE PAGE 2

ACKNOWLEDGEMENT 3

TOPIC/ISSUE/PROBLEM 5

OBJECTIVES 6

BACKGROUND/OVERVIEW 7

METHODOLOGY 8
 TOPIC/ISSUE/PROBLEM

An investigation to analyze the effects of e-commerce on small businesses in our communities.

 OBJECTIVES

● To explain the main reason for the use of e-commerce by residents in our communities.

● To discuss the effects that e-commerce has on small local businesses.

● To outline solutions that local businesses can use to maintain profitability in an era of e-

commerce.
 BACKGROUND/OVERVIEW

According to https://www.investopedia.com, electronic commerce (ecommerce) refers to

companies and individuals that buy and sell goods and services over the Internet. Over the past

decade, technology has become more advanced and continues to advance as time passes by,

however with this advanced technology consumers worldwide are now making their purchases

online rather than visiting the local businesses. Even though e-commerce has many benefits such

as: faster buying process, cost reduction, flexibility for customers etc. It has a negative impact on

local businesses in my community. The most common local businesses in our communities are

local wholesales, that mainly provide: Food items, home appliances, hygienic products and

stationery products. However, due to e-commerce these local enterprises are having less sales

because people are purchasing online. There has also been an increase in ecommerce during the

period of the Pandemic, as residents were able to order their groceries, fast food and medications

online and get them delivered.

Seeing this problem as Principles of Accounts students, who by God’s will in the future may

own different businesses and wanting to also inform our local businesses about e-commerce, and

how they can maintain profitability in an era of e-commerce, we decided to choose this topic for

our research.
 METHODOLOGY

The researchers decided on two methods of data collection being quantitative and qualitative,

whereas the use of a questionnaire and an interview will be necessary for research . A

questionnaire is a list of questions or items used to gather data from respondents about their

attitudes, experiences, or opinions. Meanwhile, an interview is a structured conversation where

one participant asks questions, and the other provides answers .Using a questionnaire would be

a fast, efficient and inexpensive way to gather large amounts of information from a sizable

sample volume. Also the use of an interview will give a good explanation, better understanding,

and makes it possible to explore research subjects' opinions, behavior, experiences,

phenomenon, etc. The questionnaire consists of a maximum of 15 close ended questions

meanwhile, the interview consists of a maximum of 5 questions.

 QUESTIONNAIRE

The purpose of this questionnaire is to gather information on the effects of e-commerce on small
businesses in our communities. This information will aid us in completing our Principles of
Accounts School Based Assessment. Please note that your responses will be kept confidential
and there is no need to write your name on the form. In addition, please read all questions
carefully.

Place a tick in the circle corresponding to the answer you have chosen.

1) Gender
o Male
o Female

2) Do you think making a purchase online is far better than visiting the local business?
o Yes, I do
o Not necessarily
o I don't know

3) Do you think due to the pandemic where people had to make full use of e-commerce to
buy whatever they want may be a leading cause to why e-commerce is so prominent
now?

Yes
No

● Yes I do
● No I do not

4) Do you think local businesses fail to supply their customers with what they want, so they
take the initiative to purchase online.

o Yes
o No
5) What is the main reason you make your purchases online or you believe others do?
o It's cheaper when purchasing online.
o Not wanting to leave home.
o Don’t have the time to visit the local store, so purchase is completed online and
delivered.
o Other, please specify_________________________________

6) What do you think may be the main cause of people purchasing online?

o The convenience of shopping anywhere.

o It's easier and affordable.
o The rapid adoption of smartphones
o Other, Please specify________________________________________________.

7) Do you own a business enterprise, whether large or small?

o Yes
o No

8) Do you think local businesses are losing customers to the online market?

o Yes
o No

9) Do you think that e-commerce has affected the supply and demand management of local
businesses?

Yes
No

10) Do you think local businesses can still maintain profitability in an era where the majority
of people are purchasing online?

o Yes
o No
11) What alternative would you suggest to local business owners to take in order to maintain
profitability.

o To promote their businesses and attract more customers

o Start their own e-commerce trade online
o Other, please specify _____________________________.

12) Do you think that local businesses should also turn to e-commerce in order to maintain
profitability?
Yes
No

13) Do you think local businesses should make it their best effort to supply their customers
with whatever they demand in an attempt to gain profit?

Yes
No

14) After completing this questionnaire, are you now more conscious about your spending
habits online? And how it affects not only local businesses but the economy?
● Yes
● No
● I do not know.
Presentation of Data.

A total of 34 individuals took part in this research.

18 of these individuals were females and 16 males.

A pie chart showing the Percentage of individuals responses to: Do you think purchasing online is better
than visiting the local businesses?

Percentage put of

A 3D pie chart displaying response to a main cause of e-commerce.

A bar graph showing responses of why are people purchasing online rather than traditionally.

Horizontal bar graph displaying the reasons people purchase online.

A scatter chart displaying the reasons individuals purchase online.
A smooth line chart displaying local businesses possible alternatives to making a profit.

Vertical bar chart showing how local businesses can maintain profitability.

Vertical bar chart showing responses. Showing possible alternatives to e-commerce.

A line chart displaying how can traditional business still maintain profitability.
 Data analysis

Conclusion

Throughout our investigation the researchers observed that the majority of the individuals are either not
sure whether purchasing, or not purchasing online is better than purchasing locally. When asked the main
causes of purchasing online, it was majoritized that: local businesses fail to supply their customers with
what they want, individuals take full advantage of purchasing anywhere at anytime from home, and due
to the COVID 19 pandemic where individuals had to make full use of e-commerce.

It was also observed that local businesses are severely affected by the shift to electronic commerce.
Losing their customers to the online market, affecting local businesses'
profitability, their supply and demand, and also staff getting laid off to decrease the operations expenses.

To maintain profitability, it was observed that the respondents strongly believe that local businesses
should start their own e-commerce trading, or should make it their top priority to meet the demands of it's
customers. Local businesses are not only affected but the economy as a whole, as due to the shift to e-
commerce. More money is leaving the country rather than entering affecting the economic stability.