It is a dog eat dog world
No one knows that better than a small business owner. Not only do they need to carve out their own little niche in the community, but they also have to fend off those larger corporations looking to corner the market in their industry.
Small businesses are important to a country’s economy because they keep money within local communities and ensure that economic development may continue there. They also increase the variety of goods and services within a country and enhance social capital.
With all of these headaches, there are still advantages that small businesses provide to the consumer and their community. One way is to power the economy of the area so everyone can enjoy a good life.
To find out what some of the other advantages are, just continue reading our article. It provides those advantages and shows how important a small business can be to you and your area.
Ten advantages small businesses provide
You may not have realized it but those small businesses that dot your city streets actually play a larger role in the success of the country’s economy than you realize. The larger corporations are not doing that as they are looking for ways to cut their workforce, maximize profits, and take over the market for themselves.
Here are ten ways that small businesses help the economy and the advantages they provide:
#1. Flexibility
Small businesses are far more flexible in their decision-making. When problems arise that threaten the existence of the business, they can make better and faster decisions than larger corporations can.
This decision-making ability can also be implemented a lot faster as the small business does not have the bureaucracy that a larger business does. Those chain stores have a set way of doing things, including making tough decisions, and that slows the process down.
By the time the decision was made the damage was done and it will take a long time to repair the damage. On the other hand, small business owners can act fast and avoid any risk that would damage their business.
If they get hurt at all, the damage may be minimal and they will have a shorter recovery time. They have an easier time avoiding the damage that hurts bigger companies which means that they can still contribute to the economy in positive ways.
That flexibility can mean survival for the small business in tougher times, even though the larger corporation has deeper pockets. Even with deep pockets, larger corporations do not like losing money and can shut down in rough times costing people their jobs and the economy then takes a hit.
#2. Expertise
The people with the expertise may not be found in those big box stores. Their interest is only in making sales and not providing the right information. This may cause a drop in their sales which can have a devastating effect on a community when the store cuts hours or shuts down.
On the other hand, the small business owner is usually known as the go-to guy or gal when someone needs expert advice. These owners know their business and they know how to solve problems. Those solutions mean that the people are happy and they come back for more products when they need them.
Many large corporations do not worry about customers coming back as they stock a myriad of products that will keep their sales up when they need them to stay up. They do not care if their employees know how to solve a customer’s problem. All they are concerned about is the bottom line.
Being customer friendly and providing the right solutions makes those customers happy to the point that they will gladly do business with the company. The prices may be higher at a small business outlet, but you cannot afford to miss out on the expertise those small business owners have.
Their advice can save you a lot of money in the long run, leaving you with more to spend on other items you like.
#3. Provide personal attention
Many shoppers at the larger outlets often get frustrated because those larger stores just do not give them the attention they need. In fact, since those larger outlets focus more on the bottom line than they do customer care, they may have far fewer clerks in the store to help their customers.
This is never good for business and can send shoppers elsewhere, even to other cities to do their shopping. When that happens, the local economy suffers and people can lose their jobs.
Small businesses may not always have a large supply of employees but the number they do have to take the time to give top-quality personal attention to their customers. These employees and businesses know how important their customers are and take great strides to provide them with a great shopping experience.
That builds trust and confidence in the store as well as loyalty. Small businesses treat their customers well so that they become returning customers. By having return customers, they make more money, can hire more clerks or other employees.
This action will trickle down and help the economy as those employees and their families need to shop for food and different supplies as well. Their income helps boost the economy.
#4. Product uniqueness
You may not think that this category will help the economy or give the small business an advantage over their larger competitors. But people are getting weary of those cheap, mass-produced products those larger corporations sell.
They are also tired of the cookie-cutter design of the stores and the way they are treated by the employees. Small businesses have an advantage as they can offer unique products that are made with care and top-quality materials.
Those products last longer making the customer happier and more willing to do business with the small business than the larger companies. The fact that small companies have a lot of freedom and flexibility to offer products and services that the big corporations are not allowed to offer, or won’t do that, gives the former a big advantage.
Plus, they have complete freedom to be creative and innovative in the products and services they offer. This freedom allows the small business to fit the product or service to the customer and provide the right fit.
It is a win-win situation for the small business as they are not hampered by corporate dictates from the head office.
#5. They have lower overhead costs
There are a lot of costly expenses that the larger corporations have to deal with. Their stores or businesses have a lot of lights, heating, cooling, and other expenses that smaller businesses do not have.
Plus, the larger companies need to provide restroom facilities and people to clean them that smaller businesses are excluded from providing. These large expenditures help drive the prices up at larger stores.
This means that the smaller business can lower their prices to make sure they are more competitive while not sacrificing the quality of the product. The lower price means you have more money in your pocket to do other shopping or pay other bills.
Those payments help the economy survive as well. The more you pay at the bigger outlets, the less money you have available for other needed expenses. You have to work more to get more money to cover those items and that takes time away from your family.
On top of that, the low overhead costs a small business owner has to contend with, the more money they have to reinvest in the community and help the economy stay vibrant. They also can contribute to many charities, competitions, and other community activities which in turn help the economy thrive.
#6. Better policies
This is another area that you may think won’t affect the economy nor give the small business an advantage over their larger competition. That type of thinking would be i error as smaller businesses have a lot more leeway in dealing with irate or unsatisfied customers than larger businesses do.
For example, the larger chain stores or businesses have one corporate policy to follow. That policy is often rigid, set in stone, and unable for exceptions to be made. When unsatisfied or angry customers run into that rigid operation process, they often do not return to that store for a very long time.
Smaller businesses are not like that and often the customer and the owner can negotiate a settlement that is satisfactory to both them and their angry or unsatisfied customer.
The owner of the small business does not have a corporate board or legal department to answer to. They can make changes in their policies in an instant to make sure they can retain that customer’s business and satisfy them at the same time.
Instead of losing money, the small business retains the sale and guarantees that the customer may return in the future. Satisfying customers quickly is a small business advantage.
#7. React quickly to changing markets
If anything helps an economy more, it is hard to find. When trends change, markets alter, and buying habits are not the same as they once were, small businesses can adapt faster.
The larger businesses have to go through different corporate channels and processes to make the changes they need to make to stay in business in that specific community. Those options can be very slow cutting sales down significantly.
The smaller businesses do not have this problem. When the owner sees these changes taking place, they can implement their own changes quickly. Those upgrades can be in the way of changing billing practices, inventory supplies, and so on.
There is no need for the small business to wait before corporate headquarters think the changes are a good idea. They are the corporate headquarters and if the owner is keeping an eye on the different trends, they can get a jump on the larger companies and keep the money they make in the community.
That is one good way to help the local community. larger corporations send the money outside of the city, town, or state, never to be seen again. Small businesses make sure the money they make remains in the area so the local economy is enhanced.
#8. Intangible advantages
There are many areas where the small business owner cannot compete with his or her larger competitors. Those areas can include, resources, storage space, larger inventory, and selection.
These are areas that are hard to overcome as the small business only has room for a certain amount of items and that is it. Also, their bank accounts are not as big as their larger competitors making it very difficult to compete on a head-to-head basis.
However, small businesses can compete in other areas which makes them more attractive to work for. One of those areas will be scheduling. Many small business owners can offer schedule flexibility. This means that you can work the hours you need to and also make changes when emergencies arise.
Larger stores often cut hours of employees so that they do not get the minimum 40 hours a week in to collect benefits. larger stores save a lot of money this way and through that cut to employees’ benefits, the economy can be affected.,
The employees just do not get enough money each week to make a difference in the economy. Small business owners do not have that ability to short-change workers on their hours and often do not try. Their employees get a good work week in, possibly with lots of overtime, and also those needed benefits.
Keeping their workers happy, gives the small business owner an edge over their larger competitors because they do not have to spend extra money training new employees. The large business may offer more money but they often do not offer a relaxed dress code, senior leadership, and other unique aspects of business that the small business owner can offer.
#9. Friendly approach
Employees in those big box stores and other large corporations just do not have the time to get to know their customers. One, they may be too busy as they are short-staffed, again, or they have a lot of duties to perform.
Two, they are told not to get too friendly to customers for if they do the customer may take advantage of the friendship and ask for unauthorized discounts, etc. Three, they might not be the best hires available because of the working conditions at those stores.
One way that the small business owner can have an edge over those larger stores is to hire qualified people who know the business. Plus, they can keep more staff on hand to make sure their customers get that friendly one on one attention they like.
Also, the store clerks can learn the names of their customers and take a personal interest in them. This does not happen in those larger stores which makes shopping there so cold and unfriendly.
The smaller outlets by learning the names of their customers can provide a very warm and friendly place to shop. with that type of atmosphere, the small business can draw in more customers and make sure they and the economy remain healthy.
#10. A good boss
In most big corporations, the boss is some nameless and faceless person living and working in another state. They have no concern for you, your problems, or what is happening in your city. When a downturn hits, those same faceless bosses can take your job without feeling guilty or losing sleep.
However, things are different with a small business. Your boss can make decisions right away, know who you are, and care about you when problems arise in your life. That employer-employee relationship becomes a lot better than it would be in large retail or other outlets.
You may not get the highest wages in the world but you get a lot more. For the most part, you get a boss who cares and works with you. This helps the employee to customer relations as well. A happy employee reflects well on a business and the better and happier the employee, the customer can sense it.
That makes the atmosphere in the store a lot better and entices customers to return and shop there. The boss of a small business also lives in the community and cares about what happens to it. That attitude goes a long way with customers and potential customers.
Some final words
Small businesses may not be able to offer all the sales,. discounts and items customers want to see and buy. But they offer something that the big stores can’t- personal service, a friendly atmosphere, well-trained employees and expert advice when needed.
Plus, by doing business with these smaller companies you help keep the local economy thriving. That helps everyone in the community and not just the higher-ups at the larger businesses.
Small businesses do have some advantages and one of them is that they help keep a community together. That is better than a larger paycheck or cheaper items that do not last very long.Cancel