Business Information Sources

Online Information

As we advance into the first decade of the 21st century, the ever-greater speed and scope of the Internet is beginning to turn the Web into the most powerful source of information for the small business. With appropriate subscription services like InfoTrac, even access to print sources is easier to achieve than actually searching newspapers or trade magazines. Search skills, of course, must be developed, but the small business owner can practice this art in the evenings when libraries and bookstores are closed.

Many of these databases offer information pertinent to the activities of business owners. As Ying Xu and Ken Ryan observed in Business Forum, the Internet includes data on demographics and markets, economics and business, finance and banking, international trade, foreign statistics, economic trends, investment information, and government regulations and laws. This information is provided by Internet news groups, online versions of newspapers and magazines, and trade associations. In addition, "many colleges, universities, libraries, research groups, and public bodies make information freely available to anyone with an Internet connection," stated Robert Fabian in CMA—The Management Accounting Magazine. "Often, the motivation is to make information available to people within the institution. But it can be less costly to provide general access than to screen access." He also noted that "increasingly, governments are publishing information on the Internet and insisting that organizations they fund also publish on the Internet. It's a practical way to move towards open government, and does make information, which is paid for by the taxpayers, far more accessible to those taxpayers (and any others with Internet access). The range of available information is impressive."

CD-ROM Information

CD-ROM (compact disc read-only memory) is an alternative to online services. As the name implies, CD-ROM is not so much an interactive system; in usage it is close to traditional print. In fact, CD-ROM versions of such print staples as the Oxford English Dictionary are now commonly available. Business applications for CD-ROM include corporate directories such as Dun & Bradstreet's Million Dollar Disk and demographic statistics such as Slater Hall Information Products' Population Statistics. The primary drawback associated with business CD-ROM products is the absence of current information, although many publishers of CD-ROM products offer updates on an annual—or even more frequent—basis.

The CD-ROM as an information delivery system is now facing increasing competition from subscription-based online services. The growing speed of the Internet when accessed by cable or DSL lines is making large down-loads from the Web less of a frustration; at the same time very rapid updates to the databases consulted are available to the user.

OTHER SOURCES OF BUSINESS INFORMATION

External sources of business information can be invaluable in helping a small business owner or entrepreneur determine appropriate courses of action and plan for the future. But researchers note that members of the business community often rely on personal contact for a great deal of their information.

"Common experience and the result of numerous research studies show quite clearly that managers, and indeed all seekers of information, frequently prefer personal and informal contacts and sources to published documents and formal sources generally," wrote David Kaye in Management Decision. "The reasons are well understood. A knowledgeable friend or colleague will often provide, not only the facts requested, but also advice, encouragement, and moral support. He or she may be able to evaluate the information supplied, indicate the best choice where there are options, relate the information to the enquirer's needs and situation, and support the enquirer's action or decision. Many such personal contacts will of course be found within the manager's own organization, which is for many people the prime source of facts, knowledge, and expertise'¦. Any organization is a complex information processing system in which actions and decisions are underpinned by an array of oral and written instructions, reports, regulations, information, and advice. Accordingly, many managers seldom look beyond the organization's boundaries in their search for information."

Business analysts note, however, that companies that do rely exclusively on internal information sources run the risk of 1) remaining uninformed about important trends in the larger industry—including new products/services and competitor moves—until it is too late to respond effectively; and 2) receiving skewed information from employees whose goals and opinions may not exactly coincide with the best interests of the business.

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