Final answer:
Technology and globalization are key factors influencing the future of small businesses. The internet has expanded the reach of consumers and enabled global competition, impacting both local retail businesses and business-to-business markets. There is a debate about whether technology will result in larger or smaller firms, with potential for both scenarios.
Step-by-step explanation:
In recent decades, two important shifts have been influencing the future of small businesses: technology and globalization. The improvement in communication technologies, particularly the internet, has allowed consumers to access products and services from anywhere in the world. This has increased competition for local retail businesses and has even affected markets for business supplies, where buyers and suppliers can connect globally through 'business-to-business' websites. Furthermore, there is a debate on whether technology will lead to a larger or smaller size for firms, as it can enable small firms to reach customers beyond their local area while also potentially creating winner-take-all markets dominated by large companies.