Small businesses might only be small in terms of organizational structure, but what the collective statistics suggest bear no semblance to anything small. According to Forbes, there are over 28 million small businesses functioning in the US alone, which have employed around half of America’s working population. Non-employer small businesses constitute a massive 75% of all the businesses operating in the US now. Furthermore, according to US Small Business Administration, the total number of small businesses account for about 54% of all the sales made.
When you look into the industry of small businesses collectively, you get an idea of how enormously they affect, positively so, the economy of the country. So while the stats may have convinced you of the physical enormity of the small business industry, there are few more reasons why it is the next ‘big thing’. Read on!
They are in closer contact with the masses
Small businesses represent the essence of a place since they are being run by the common people, who don’t have larger than life investments at their disposal and contacts with the big players of their industry. When big businesses target niches and try to build exclusivity around them thereby separating from the masses, it is the small businesses which center their services on the core population of a country. Since they know what unique needs and gaps exist in their specific limited markets, they can connect better. What you don’t find at a luxury departmental store, you might get your hands on at your neighborhood store being run by some old couple living nearby, aware of the spirit of the neighborhood.
They generate more employment
There is a huge chunk of high school graduates in the US who don’t make it to college because of a number of reasons, mainly financial. The reason why they get employment is because of the small businesses and the massive employment opportunities they come up with. Bigger corporations settle for no less than at least bachelor’s degree for the candidates they consider for employment. If it was not for the small businesses, a large population would be left unemployed. Getting yourself proficient in a certain skill and the willingness to work is all you need to get yourself relevant employment with a small business.
They adapt and respond better
Since small businesses do not have huge and complicated organizational structures to maintain and staff to handle, it’s easier for them to adapt to local changes and needs better. Also, any changes in the local trends in terms of demand of certain goods and services come into their notice way before corporations do. This ability to adapt better and respond better gives small businesses an edge over their big counterparts. Also, this makes them automatically more enabled to personalize and customize their services because they know what it is that people instantly connect with. The absence of multiple levels of authority puts them in an open and more flexible position to cater to their markets in a better way.
April Salsbury, MBA is a strategist, an analyst, an operational guru, a recognized leader and C-suite global healthcare executive with drive and focus for competitive markets. Co-host of The Business Forum Show and regular contributor to various business journals, she possess multi-functional and multi-national competencies with more than 15 years experience in business and healthcare. Her expertise is in invigorating revenue growth and infusing value of lean practices in growing companies through improvements to cash flow and operations management.
Fueling revenue, growth and profit, Salsbury & Co. is a consultancy firm focused on helping businesses and healthcare organizations achieve excellency. Our specialists have executive experience combined with deep functional expertise to provide our clients with services that drive real impact and results.
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