Entrepreneurs looking for innovative ways to launch their businesses benefit greatly from this feature of Web 2.0. It gives them the competitive edge against larger corporations that are run in an inflexible top down manner.

An early 2007 poll revealed that several established companies believed Web 2.0 was over-hyped and were convinced it would have no impact on their business or any other start-up business. Traditional thinking industry leaders found it difficult to believe that blogs and social networking could have world wide consequences on any level—start-up or otherwise. A few months later, Web 2.0 marketing has sky-rocketed, proving them wrong and leaving them scrambling to strategize and integrate this once innocuous marketing structure into their existing models.

Larger businesses may miss the point in making the routine change over from disseminating reports and circulars by e-mail, to keeping the team connected via a blog. Though it does seem of no consequence, the effects may be completely unanticipated. Just a simple shift to blogging can result in a drastic increase in page views as new subscribers subscribe via RSS feeds.

With nothing to lose and everything to gain, entrepreneurs who readily embraced the easily-accessible and mostly-free Web 2.0 technologies which have levelled the playing field against the larger companies. Though missing the Web 2.0 boat may not have obvious ramifications, there is a subtle but definite shift.

Some of the Web 2.0 applications that are helping small businesses achieve unprecedented success include:

Blogging

Blogs are being used to keep customers in the loop. Some of the more popular blogging applications include WordPress, TypePad and Blogger. There are several options available, most of which are free.

Videos & Podcasting

Many businesses use podcasts to provide customers with product information, useful tips and company updates. Videos can also be included in the new podcasts, giving rise to a new trend known as vodcasting.

Wikis

Using Socialtext, JotSpot and EditMe, businesses can develop a dialogue with visitors and allow them to edit company information in real time and also make suggestions.

Social Networking

Businesses are using social networking sites to create their own communities so consumers can connect with product managers. Employees too are increasingly using social networking sites to collaborate on various projects.

Syndication

Savvy entrepreneurs are broadening their customer reach using syndication. Feeds that are usually done in Atom and RSS formats can accommodate diverse media.

While the shift to Web 2.0 has been natural and subtle, it's changes can have huge ramifications for those small businesses who are willing, or unwilling, to embrace them.