Positive and Negative Effects for Business in Net Neutrality

Generally, as a small business owner, I’m convinced Net Neutrality brings advantages and disadvantages to small businesses at the same time. The impact causes positive and negative results. Net neutrality has three positive effects for small companies. They are small companies are simpler to survive, increasing information flow and elevating business efficiency. First of all, to an emerging and small company, the most considerable target is to survive. After that, the company can increase profits by expanding its business. Because the net neutrality requires that any website is loaded at the identical speed. Simultaneously, the internet provider company cannot treat any websites differently. Huge corporations can't use strong financial resources and unreasonable methods to compete with other companies. Net neutrality refrains a market to be monopolized by a few large corporations. In this case, every industry is fair on the foundation of competition, and it is simpler for small companies to survive. Second, increasing information flow is beneficial for small business. Net Neutrality allows users to visit each website without any hindrance. Therefore, various information is convenient to circulate. With the exchange of information with different companies and the disclosure of information, the technology of small businesses will be able to progress and grow rapidly. Third, elevating business efficiency is another superiority. 

Net neutrality permits all visitors to have the same speed entering every website. According to Suthar, S. (2018)” It is being long time that the website has been your most effective marketing tool for any business. Is this still holds true, these day website is not just used to drive business, but it also conducts business.” Website development is essential for businesses looking to increase efficiency across their organization. Besides, internet providers cannot charge additional fees for specific websites. As a result, small companies can increase their operational speed. Operating costs are also going to reduce. Therefore, business efficiency can significantly improve.

Nevertheless, net neutrality has also brought some negative impacts on small businesses. First, small businesses are not simple to form alliances with enormous companies. In the past, large Internet provider companies can be cooperative with specific small companies. Consumers were more likely to browse small company websites. Due to the implementation of network neutrality, small companies are unable to use alliances with other large Internet provider companies as before. Therefore, small companies have no ways to increase brand awareness by huge Internet providers now. According to CHRIS, P. (2001). “What's it like when everyone sees your logo and instantly knows who you are? Just ask Nike. The Nike Swoosh is immediately recognizable, and the company's slogan, 'Just Do It,' has become a part of the American lexicon. The power of its branding helped Nike sprint past the competition in the 1970s and '80s.” Therefore, the inability to increase brand awareness is a significant loss for the small business.

Besides, net neutrality has removed many restrictions. Therefore, many competitors are more convenient to enter the market. To small companies, they have to spend more R&D costs and personnel cost maintaining its competitiveness. In this case, some companies are going to reduce the price to compete with other enterprises. The condition will shrink the company’s profits.

It has a negative impact on the long-term development of the industry.