Electronic Commerce For Diaspora: A Real Option For The Local Company

Electronic commerce for diaspora: a real option for the local company

Population movements have existed in humanity for centuries, history shows how the human being has moved from place to seek a better quality of life. Puerto Rico has not been the exception, from the end of the 19th century to the present we have seen a massive and dispersion movement of the population outside the island. This movement is known for the scholars of the subject as the diaspora. The precarious economic situation of the island in recent years, aggravated by the roof of hurricanes Irma and María in 2017, has accelerated the movement of Puerto Ricans to American soil. The United States Census Office (2017) indicates that, if the current trend, the population of the island will be two million inhabitants for 2050, contrasting with the 3.8 million we had for the 2010 census.

Puerto Rican diaspora has the special feature of possessing US citizenship, different from other demographic movements that occur in the United States. Having this citizenship allows Puerto Ricans to establish themselves in any part of the United States, the place being the place of preference today. According to the Federal Census (2017), in Florida they live approximately 1.1 million people of Puerto Rican origin, but increases are also reflected in the Puerto Rican population in states such as Massachusetts, North Carolina and Indiana. In Washington d.C. An interesting trend occurs, since there are the Puerto Ricans with better academic preparation and those that generate more per capita income, according to the census (2017).

On the other hand, the island has growth in the population of older adults. Although it is a worldwide problem, in Puerto Rico it grows rapidly with the aggravating fact that they stop contributing to the economy and in some cases have a total dependence on the State (García, 2014). There are many countries of the world that are facing problems with the decrease in population such as Japan and Hungary (knowing is practical, 2017).

Effects and consequences

The current population movement in Puerto Rico is not precedent, since it has caused a leak of talents that negatively impacts our economy. The current exodus includes right -handed workers and not right -handed such as doctors, engineers, lawyers, nurses, police, firefighters, medical emergency technicians, entrepreneurs and entrepreneurs.

A publication of December 17, 2018 of the El Espero newspaper, indicated that an increase in the exodus of teachers, wardens and police in the coming years is expected. This population movement has an opportunity cost to the extent that it allows to escape productive resources creating loss of local income and with this, a chain of multiplier effects. The opportunity cost worsens when most of those talents, with excellent skills, were created and developed on the island with our resources. However, they are now part of the labor market of other cities where they contribute what is acquired. The reduction in the consumption created by the current population movement has decreased demand for products and/or services in all the lines of the Puerto Rican economy. Some economists indicate that the economy that does not move by decrease in population creates permanent depression. In other words, there are fewer people acquiring products and/or services, which decreases the income of Puerto Rican companies that have had to adjust the way of doing business.

The companies of the island are going through one of the worst moments in their history, since the decrease in their sales causes them to contribute less to the treasury, but the government in turn responds, imposing more arbitration to be able to balance its budget. The balance is always against companies (World Eonomic Forum, 2017).

Economic situation

The decrease in consumers that support local businesses leads companies to look for alternatives to improve that situation. The market decreases and the trend is to continue that way for the coming years.

Companies urgently need to increase the demand for their products and/or services to stay competitive. So all looks and hopes must be directed to the Internet and electronic or digital commerce, since every company can reach more customers anywhere in the world without making trips abroad.

According to dr. Julio Santana of the Carlos Albizu University, in a publication by José Javier Pérez de El Nuevo Día (2018), “The Puerto Rican diaspora really does not go from Puerto Rico, since they are connected by a sense of belonging that is not geographical,but emotional, cultural and psychological ". This connection is the growth opportunity that local companies need to increase their market share and the alternative is called electronic commerce.

In a publication for the digital edition of the New Day newspaper, economist Gustavo Vélez (2018) pointed out that "Internet has changed the way of doing business and the variables are not measured taking into account traditional model factors". Technological advances have allowed the proliferation of companies oriented to digital trade that have begun to leave behind the traditional companies that were the ones who established the guidelines of what it was to do business in the last century.

Digital trade requires that every business on the island, regardless of size, pay attention to that model in a priority way if you want to get ahead. Large world prestige companies are already making substantial adjustments in their retail sales plans to face the ravages that electronic commerce is creating. Many world -class traditional companies are losing between 50 % and 95 % of their market value, according to Gustavo Vélez on the new day (2018).

The impact of electronic commerce on the traditional retail sale is currently, it can currently be observed how many shopping centers close operations in the United States (Vélez, 2018). A situation that has been lived on the island for some time and that is aggravated by the loss of population and government economic problems. We are all witnesses of how world-prestigious companies such as Sears Roebuck, Sams Club and K-Mart are disappearing or decreases their presence in the Puerto Rican market. Many of these companies are the pillar of large shopping centers, so when they disappear they affect other businesses. Definitely, the local private company must be encouraged to use electronic commerce, since it can be the real option for the economic situation of the island.

Electronic commerce

Electronic commerce comes as part of the digital revolution and brings an incredible increase in the flow of information and capital creating enormous pressure in all world economies due to the use of the network (Vélez, 2018). The access that a country has to the Internet or the network is a crucial factor for its development. So much so, that it is used to measure competitiveness and productivity by world organizations such as the World Economic Forum (2014). In Puerto Rico, the use of the Internet is 69% and that figure 86% connects through smartphones, indicating that the island is growing in that line (The Media Scoop, 2017). Still, the island has places where the internet does not arrive, but there are initiatives, such as Connect.PR that work to improve that situation.

Acquiring products from any part of the planet is the greatest benefit offered by electronic commerce. At the same time, it is one of the most growth tools in the network, but that requires an investment in computer technology, equipment and programs which can be expensive for small and medium enterprises (SMEs). To this is added, that extensive knowledge is needed in the area. There are affordable alternatives for the small merchant to participate in the network without having extensive knowledge or having to invest in equipment. This is found in the so -called cloud. The cloud is a set of companies that allow us to use their equipment and programs with or without pay on the Internet. Basically, if we do an analysis, almost everything that is emerging today on the Internet, it is through the cloud, from social networks to storage places. For example, when you do a google search or enter Facebook you use the resources of those companies that exist in the cloud. It is the same when using Dropbox, Google Drive from Google, One Drive from Microsoft or Apple ICloud, which is storing in the electronic equipment of those companies. There are companies in the cloud dedicated to collecting data so that its users can analyze the information and make real decisions. The TripAdvisor application (2017) is one of the cloud companies dedicated to collecting data on different parts of the world, so that the traveler has first -hand information about the place he wants to visit.

The most feasible way for SMEs to enter electronic commerce is selecting a host (host) in the cloud, which is a company with resources to handle large amounts of data on the Internet. There are many online options that help SMEs to be part of electronic commerce. The important thing is to search and compare cost with what each one offers to select the one that best suits the needs of the company.

Thanks to the cloud, today it is much easier to enter the Internet. However, it remains a process that requires certain details that not everyone knows and for this reason it is advisable to hire an independent person (freelancer) or a company dedicated to preparing electronic commerce for SMEs.

conclusion

Local and foreign companies face the greatest challenge in their history, due to an unprecedented decrease in consumers as a result of the population movement and a digital market that increases acceleratedly. To have an idea of the impact of electronic or digital commerce, in the United States electronic sales presented an increase of 9.1 % between 2010 and 2017, with figures that amounted to $ 3.8 trillions at $ 5.1 Trillones (Vélez, 2018). As analysts indicate, digital trade arrives to stay and those companies that do not make the necessary adjustments could disappear.

Electronic commerce must be the first option for Puerto Rican companies because of the aforementioned and the message that they must take to the Puerto Rican diaspora must be the love of the homeland and the love of the manufactured or manufactured in Puerto Rico.

On the island there are already digital projects to address the Puerto Rican diaspora in the United States. For example, the Shop & Hire Puerto Rico platform was created by the Puerto Rico Science, Technology and Research Trust with the Colmena66 program66. The product is a directory of online stores, freelancers and Puerto Rican professionals who work remotely from Puerto Rico. The development of Platforms for Puerto Ricua is an area that is growing and companies must join.

Local shops must highlight the resources and culture that the Puerto Rican diaspora longs for, and present products to vacation in Puerto Rico is always their first option. Currently, there are several initiatives that invite the Puerto Rican diaspora to tour historical and cultural places of the island and the TripAdvisor application (2017) presents several of those alternatives. Local businesses, regardless of what product they sell, must be promoted in electronic commerce with images alluding to resources and the culture of the place where they place, and thus attract that vsi -boricua emigrated.

The island harvests and packs many products known and appreciated by the diaspora that are already sent to the United States by traditional means. However, there is a group of young farmers that make that dynamic for costs impossible for costs. For these land workers, electronic commerce offers real options at affordable prices, so that they can carry their products outside the island.

Some authors propose non -technological alternatives that are interesting to stop the population movement. According to García (2014), to avoid the exodus of Puerto Rican talents, university students should be aware and in a way ‘force them’ to work in Puerto Rico for a period of time. In this way, local capital is produced for the island. As indicated, it is not just that we have an exodus of talent, they prepared on the island but they took that knowledge and skill to another country. Dr’s proposal. Garcia would help SMEs use and retain local university talent, to develop a competitive electronic commerce for the global environment.

As indicated, there are electronic commerce initiatives that cover many areas, but we must do more when considering that the population of Puerto Ricans in the United States duplicates that they live on the island and continues to increase. At the same time, the island’s productive population decreases, while people with retirement age increase. With these factors we can affirm that it is time to look for alternatives to balance the equation, so that the economy can grow. The traditional way is not the solution, so we must resort to electronic commerce technology to find solutions.

References

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