For decades, the global market has been dominated by big business and the leaders of industry. However, through the power of the Internet and mobile technology, small businesses are now able to reach beyond their local communities and access global markets. As commerce continues to change and evolve and new businesses and entrepreneurs are leveraging the power of the Internet, eBay  Inc. is focused on helping small and medium sized businesses access global markets.  In an effort to help promote cross border trade, eBay sponsored a study by the Economist Intelligence Unit, The G20 e-Trade Readiness Index, that looks at how prepared G20 countries are to capitalize on global e-trade opportunities.

The G20 e-Trade Readiness Index looks at five factors that contribute to overall e-trade readiness: investment climate, Internet environment, international trading environment, regulatory and legal framework, and e-payments environment.  Australia emerged on top of the rankings, but a number of G20 countries were not far behind, including South Korea, the United States, Germany and Canada.  The G20 e-Trade Readiness Index also revealed that China's potential is large but is hindered by regulatory challenges.

Although the Index highlighted the positive trends that we are seeing across the globe on e-trade readiness, the study did identify friction points that slow the flow of global trade. The research shows:

• Shipping rules that were designed for large companies to send bulk packages need to be  revised to better facilitate small business trade. Postal systems should also consider programmes that make international shipping easier, more trackable and less costly.
• Companies may have to overcome potentially burdensome in-country data regulations. If countries implement laws that restrict cross border data flows, such as the requirement to store data in-country, compliance costs could be overwhelming for all global companies. When the cost of storing, using and securing global data goes up, our economy suffers the consequences by limiting the potential for investing in new markets.
• Careful attention must be paid to the dynamic between prudent regulation and openness to innovation and trade. The potential for a new wave of cross-border commercial and economic opportunity for the vast majority of businesses the world over should be an increasingly important consideration for policymakers looking for new, broad-based economic growth. Small and medium sized businesses are continuing to integrate information and communications technology into their business models - and they need the global policies to adapt and adjust to this new global, data driven market.
• There is still work to be done to bridge digital divides. Fast and reliable Internet access is critical to tapping this growth opportunity. We also need policies around the world that help businesses and employees equip themselves with digital skills to leverage this access to global markets.

Although technology empowers small businesses to overcome many barriers to global trading, pre-Internet trade policies now create complications for small-scale traders.  eBay Inc. believes that global trade rules should be modernized to ensure small businesses can participate in technology-enabled global commerce.  Our vision for a more connected form of commerce is one that is more inclusive, open, and diverse - and e-trade readiness is at the core of making the vision a reality.

To learn more about eBay Inc.'s position on promoting small business trade, please visit our cross border trade issue page or download The G20 e-Trade Readiness Index.