e-commerce opportunities for limited resources rural population extension worker training kimball...
TRANSCRIPT
E-Commerce Opportunitiesfor
Limited Resources Rural Population
Extension Worker Training
Kimball P.Marshall, Ph.D., Alcorn State University [email protected]
Ilya Smolyaninov, Alcorn State UniversityIgor Georgievskii, Alcorn State University
Leigh Junkin, Alcorn State University
Chapter 1: Introduction
Objectives of training manual
• Provide guidance to extension workers to encourage rural limited-resource people to begin small-scale Internet-based, e-commerce activities
• Rural, limited-resource populations must believe in the ability to use e-commerce for personal goals
• Extension workers must encourage this belief and provide support as skills are developed
• Expectancy Theory provides the theoretical framework• Existing e-commerce private sector sites provide the opportunity
Chapter 1: Slide 1
Chapter Outline
Chapter 1: Slide 2
Chapter 2 Explains how expectancy theory and the concept of locus of control can be applied to rural limited-resource populations
Chapter 3 Provides examples of success stories of rural populations that have used basic e-commerce to sell products made with rural life skills
Chapter 4 Provides guidance identifying rural life skill products appropriate for e-commerce
Chapter 5 Introduces simple approaches to e-commerce such as selling products on Internet auction sites
Chapter 6 Provides guidance in basic personal finance management skills for entering e-commerce
Chapter 7 Reviews what has been learned and encourages actions
Chapter 2: Building Confidence – Expectancy Theory and Locus of Control as Theories of Motivation
• Rural limited-resource populations face many e-commerce barriers– Lack of information and experience– Lack of knowledge about similar people – Lack of role models
• Two key theories of managerial psychology can help limited resources clients– Expectancy theory– Locus of control theory
Chapter 2: Slide 1
• Expectancy theory involves establishing three basic beliefs• The individual must believe that he
or she can perform the required tasks
• The individual must believe that performing the tasks specified will lead to the intended results of the task
• The individual must believe that, as a result of successfully achieving the desired outcomes, the individual will achieve the reward that the individual desires
Chapter 2: Slide 2
Expectancy Theory
• Locus of control refers to whether an individual perceives himself or herself as having the ability to achieve personal goals or whether the individual perceives their fate as controlled by external conditions
Internal locus of control
You believe you can set and achieve your own
goals
External locus of control
You believe you must depend on others to set and
fulfill goals
Chapter 2: Slide 3
Locus of Control
Locus of control Expectancy Theory
Locus of control can be tied to expectancy theory in that the
individual must believe he or she can perform the required tasks, and that
the tasks will lead to the intended outcome, which will result in the individual receiving the desired
reward Chapter 2: Slide 4
• Persons with an internal locus of control – Have confidence in their ability to perform desired tasks– Recognize that this ability allows them to achieve personal goals
• Persons with an external locus of control – Might not believe that they can accomplish the desired tasks – May lack confidence in their ability to achieve personal goals
• The extension worker’s challenge is to build clients’ confidence – In their goals– In their ability to achieve their goals– In their ability to perform the necessary e-commerce tasks
Chapter 2: Slide 5
Challenges Facing Rural Limited Resource Populations
Chapter 2: Slide 6
• Explore Clients’ Desires for Financial, Social and Psychological Rewards from Self-Owned Business Ventures – Free flowing discussions with groups of clients and extension
workers can help clients identify desired rewards (financial, social and psychological)
• All members of the group should be encouraged to share their ideas with one another
• Explore Clients’ Awareness of Neighbors Who Produce and Sell Products on a Small scale for “Extra Cash.”– Entrepreneurial small farmers who engage in truck farming
activities– People who participate in local farmers markets– Persons who are known to make special products such as jams,
jellies, toys, quilts or other craft products
Discussion Topics and Exercises
Chapter 3. Microenterprise Success Stories from Rural Communities
• Success stories will– build confidence – motivate– Stimulate vision– Provide reference group for the limited
resources client• Key success story illustrations include
– Highland Harvest– Oyster Creek Mushroom Company – Indian Village
Chapter 3: Slide 1
Examples of rural, microenterprise e-commerce activities can help rural, limited-resource people to understand that their rural life skills have value and that the products they make can be sold through e-commerce
Chapter 3: Slide 2
Highland Harvest
Highland Harvest, supported by Lightstone Community Development Corporation, is a very interesting example of how producers can join together to create an “on-line” shopping mall for high value-added, gourmet, food products. Through Highland Harvest, producers from small farms in Hampshire County, West Virginia, offer organically grown products directly to consumers over the Internet. By emphasizing finished products developed from organically grown produce, Highland Harvest is able to distinguish its products from commodities that do not command high prices. By teaming together, producers offer on one web site a variety of products to capture and maintain consumer interest.
Strategy in action
Chapter 3: Slide 3
www.lightstone.org/dev/shoponline/index.html
Chapter 3: Slide 4
www.lightstone.org/dev/shoponline/index.html
Oyster Creek Mushroom Company
Strategy in action
Oyster Creek Mushroom Company of Damariscotta, Maine is an interesting example of how e-commerce can serve specialty food niche markets. The web site explains that the company grows “the very best” Shiitake Mushrooms, as well as a variety of fresh wild mushrooms, and offers dried mushrooms, mushroom powders, flavored mushroom oils, and gift boxes. The site also tells the owners’ personal story, educates customers about wild mushrooms, offers recipes, and allows customers to purchase on-line.
Chapter 3: Slide 5
www.oystercreekmushroom.com
Indian VillageStrategy in action
One of the most interesting rural e-commerce web sites is www.IndianVillage.com, an on-line shopping mall with many links to Indian related web sites such as Durango Silver Company that offers Bisbee Blue turquoise jewelry and cabochons through its E-Bay store. Other IndianVillage.com web site links shows the e-commerce activities of American Indian artisans who offer pottery, basketry, textiles, beadwork and various forms of Indian jewelry.
Chapter 3: Slide 7
www.indianvillage.com
• Seek Local Area Success Stories From Clients– Find others who have sold products on the Internet
• family members, neighbors, work colleagues, friends– Ask questions
• How did they do it?• What auction site(s) do they know about?• Did they make money?
• Review Web Pages Cited– Print or display web pages– Ask clients to think of products they might sell– Discuss costs involved
• Time• Supplies
• Compare costs with similar prices being sold on the InternetChapter 3: Slide 9
Discussion Topics and Exercises
Chapter 4. Valuing Rural Life Skills and Products
Chapter 4: Slide 1
The limited-resource client needs to recognize the market value of his or her skills and the products they can produce
Common Rural Life Skills
A variety of job skills can product marketable products appropriate for high-margin e-commerce sales:
• Food Processing• Fabric Crafts• Carpentry and Wood Working• Visual Arts • Music• Book Publishing
Chapter 4: Slide 2
• Jams, Jellies, Candies, Relishes• “Home grown” or “Gourmet” foods
Chapter 4: Slide 3
Food Processing
• Sewing• Knitting• Crocheting• Quilting• Leather goods• Embroidery• Fabric toys
Chapter 4: Slide 4
Fabric Crafts
• Furniture• Toys• Art objects• Yard décor• Dollhouses• Mailboxes
Chapter 4: Slide 5
Carpentry and Wood Working
• Painting• Photography• Sculpture
– Clay
– Metal
– Ceramic
– Wood
• Pottery– Decorative
– Functional
Chapter 4: Slide 6
Visual Arts
• Independent artists• Musical groups• Church choirs
Chapter 4: Slide 7
Music
• Rural authors• Cultural or historical organizations• Club fund raisers• Genealogical materials
Chapter 4: Slide 8
Book Publishing
• Discover the Clients’ Skills and Products– Products that were made by oneself as presents or for using
at home• Explore Market Potentials Through On-line Store Searches
– Similar products on Internet auction sites– How Internet auction sites work?
Chapter 4: Slide 9
Discussion Topics and Exercises
Chapter 5: Slide 1
Chapter 5: Simple E-Commerce Approaches
for Getting Started
An online auction and shopping website is where people and businesses buy and sell goods and services worldwide
Things clients need to know about selling online
• Obtain Internet access and an e-mail address• Register as a seller on an Internet auction site• Establishing a payment system to receive your
money• Create a listing to offer your product• Actively sell your product during the offering time• Arrange payment and shipping• Buyer and Seller feedback to the Internet auction
site
Chapter 5: Slide 2
Obtaining Internet access and an e-mail address
• Free Internet access is often available in the community.
• Free e-mail accounts are available through several reputable internet sites
Chapter 5: Slide 3
Registration as a Seller
• Basic Steps:
• Enter basic information
• Choose your User ID and password
• Click on the register link at the top of most internet auction pages
• Get a confirmation email
Chapter 5: Slide 4
Establish a Payment System
• Requirements for efficient, secure sales:
• Account to receive payments to
– Local Bank account
• Secure payment method for customers
– PayPal (https://www.paypal.com/)
Chapter 5: Slide 5
Create a listing
• Decide what to sell
• Complete online listing form
• Auction format
– Fixed price format
– Classified Ad format
– “Store” format
• Select a category
• Specify a title
• Write a description
• Take digital photographs
• Beginning and ending times for the auction
• Other listing information
Chapter 5: Slide 6
Selling the Product
• Monitor the process regularly– Check email and auction site
• Communicate with interested buyers– Reply to any information requests
in a timely manner• Promptly close the sale
– Notify winning bidder – Confirm purchase
Chapter 5: Slide 7
Payment and Shipping
• Monitor payment method• Ship product when payment is
received• Pack product properly• Insure the product• Get a tracking number• Use a reputable carrier
– USPS– UPS– FedEx– DHL
Chapter 5: Slide 8
Buyer and Seller Feedback
• Feedback is important to create a trustworthy online auction community
• Trust will build sales
Chapter 5: Slide 9
Discussion Topics and Exercises• Work with Clients to Identify Free Computer and
E-mail Access Resources– Churches, Public Libraries, Schools– Ask friends and relatives for assistance– Demonstrate how to use e-mail and the
Internet• Online Exploration of Internet Auctions with
Limited Resource Clients– Perform searches– Monitor auction activity– Determine shipping options and costs– Calculate realistic prices for products to be
sold
Chapter 5: Slide 10
Chapter 6: The Need to Keep Track – Financial Literacy, Record Keeping, Taxes and Internet
Transactions
Chapter 6: Slide 1
Financial Literacy Challenges of Limited Resource Populations
The extension worker should help the Client to develop basic financial literacy skills needed for e-commerce
• Basic record keeping• Sales tax• Income tax• How to get paid
• Simple accounting approaches of keeping records• Use IRS Schedule C as template• Help Client organize simple ledger
Chapter 6: Slide 2
Record Keeping
Sales Taxes• Consult with State Tax authority to
determine current policies– Sales tax may be State and
County specific– Most states do not require the
Internet seller to pay sales tax on out-of-state sales
• Local extension worker assistance will be important– Assist with setting up a sales tax
account if necessary
Chapter 6: Slide 3
Personal Income Taxes
• Profits from e-commerce sales are subject to taxes– Federal, State, and Local income taxes
– Self-employment taxes
• Portion of e-commerce revenues should be set aside in a bank account
• Forms to become familiar with– IRS Form 1040 Schedule C– IRS Schedule SE– State income tax form (state-dependent)
• Again, Local extension worker assistance will be important
Chapter 6: Slide 4
How to Get Paid: The Need for a Basic Bank Checking Account and Third Party Payment System
• Important challenge is to encourage limited resource client to develop a trust in credit and banking systems
• Bank checking account is critical for e-commerce selling
• PayPal third party payment account is strongly advised– Provides a safe and secure
method to purchase goods– Speeds up the seller’s
receipt of funds from a sale • Bank and PayPal fees should
be taken into consideration when setting product prices
Chapter 6: Slide 5
Chapter 6: Slide 6
Discussion Topics and Exercises
• Financial Literacy Discussions– Discuss how client feels about banks and payment systems– Discuss client’s current method of handling personal finances– Include information about credit and interest rates– See the Financial Fitness Quiz at
http://njaes.rutgers.edu/money/ffquiz• The Need for Basic Record keeping
– Clients should work in groups to review the IRS Schedule C (1040 form)
– Keeping good records is critical to the success of any business
Chapter 7: Now Let’s Get Started
• Expectancy and Locus of Control Theory• E-commerce success stories• Common rural life skills can become marketable products• Steps to begin e-commerce activity• Financial management issues
Chapter 7: Slide 1
EvaluationAn evaluation process is important to ensure that any training program is
effective and to provide for continuous improvement for future programs. An extension worker evaluation and a client evaluation is included—Thank you for taking the time to see they are completed.