The rapid development of the "information highway" most especially the World Wide Web has been likened by many to a new industrial revolution. In addition to the Web, the proliferation of several other information and telecommunications technologies is re-shaping the way business is transacted. These include fax machines, e-mail, overnight mail, and cellular phones.

These new technologies connect producers and consumers in a more timely and efficient manner. For small and home-based businesses, the key impacts are being felt in the following areas:

Input supply. Business owners can easily access information about input sources for use in their production and service activities. This can translate into lower costs for the inputs purchased, as well as less time spent searching for low-cost input suppliers.

Advertising and promotion. In effect, the new information and telecommunications technologies have reduced the cost of distance by enabling business owners to promote their products and services via Web- and e-mail-based advertising. These forms of advertising are both cheap and extensive. Because of this, they are particularly beneficial to small and home-based businesses located in relatively remote rural locations.

Sales and marketing. The new technologies expedite the market research necessary for business success, allowing entrepreneurs to investigate how other competing businesses are positioning their products. They also facilitate sales and customer service activities. Recent advances in security technologies allow customers to order products safely over the internet, while follow-up activities (such as product support) are expedited by fax and e-mail capabilities.

The globalization of the economy is a double-edged sword for small and home-based businesses. On the one hand, improvements in transportation and marketing capability the declining cost of distance permit small businesses to access more sources of input supplies and to sell goods and services to more distant customers. More than any other time in history, entrepreneurs can seek out niche markets and target customers outside of traditional market areas.

On the other hand, operating on an expanding economic playing field means that the competition small businesses face is likewise growing tremendously. This intensifies the need for existing small firms to fulfill the basic requirements for business success: efficiency in production, responsiveness to the tastes and needs of customers, and effective marketing. While the new information and telecommunications technologies can help a small or home-based business owner meet these requirements, the greater competition accompanying globalization has effectively stiffened the penalties for failure to do one's homework.

The same applies to entrepreneurs weighing the decision of whether or not to launch a new business. Given the realities of the new global marketplace, prospective business owners must pay close attention to the competitors they will face in the marketplace before they begin operating their business.

The way in which consumers buy products and services is evolving in ways that can favor small and home-based businesses especially businesses located in rural areas. Mail-order and electronic shopping are increasing decentralization of purchasing. This means that businesses no longer need a physical facility, such as a showroom or store, to connect them with their customers.

Despite these changes in purchasing habits, consumers still demand quick and reliable service and good product selection. And there is still a premium placed on a "personal touch" in the sales process. Small and home-based businesses located at some distance from their customer base must be sensitive to these desires on the part of their clientele.

Quilting is an excellent example of a typical home-based business in rural North Carolina, one commonly associated with remote locations like the mountains in the western part of the state. Quilters producing blankets, wall hangings and other quilted products traditionally have sold these items to chance passersby or at an occasional craft fair.

An excursion into the World Wide Web reveals that the quilting industry is now radically different than this stereotype a reflection of the three trends discussed above. Using one of the standard search engines, the keyword "quilts" turned up 281 web sites devoted to quilting. Some of these web sites provide listings of places to purchase fabrics, design books, threads, and other necessary supplies for producing quilts. Others have been set up by quilting organizations (such as the Asheville Quilt Guild and the Western North Carolina Quilters' Guild) to promote quilt-making as an art form, to share information, and to advertise quilting shows. And many are set up by individuals for commercial purposes.

The primary focus of the great majority of individual quilting web sites is to advertise and market quilted products. The World Wide Web technology allows individual producers to display pictures of their finished quilts and information on cost and ordering. In many instances, interested purchasers may pay by credit card. In this way, quilts are now being sold without any sort of face-to-face contact between the producer and the buyer.

The three trends that have been discussed here represent a mix of good news and bad news for current and prospective owners of small and home-based businesses. Nowadays, location is less and less of a constraint on the ability of entrepreneurs to operate a successful business. Continuing improvements in information and telecommunications technologies (and the changes in the purchasing habits of consumers that have accompanied them) work to the benefit of rural business owners by effectively reducing the cost of distance. On the other hand, the factors reducing the cost of distance are also intensifying the competitive forces operating within the global marketplace.

The ability of small and home-based business owners to recognize and respond to the these trends will thus have a profound impact on whether or not their enterprises prosper in the coming years. The North Carolina Cooperative Extension Service can help entrepreneurs take advantage of the possibilities represented by the information highway. Every Cooperative Extension center has at least one agent trained in using the new information technologies. Additionally, local agents can draw on the services of five Area Information Technology Agents whose job it is to provide backup support and expertise to agents within their geographical area. For more information, see your local Extension Agent.