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The Strengths of Small Business

ArticleID 122  
Writer Isaac Thuku
Category Personal Article

Any entrepreneur who is contemplating a new venture should examine the strengths of small businesses as compared to large ones and make the most of those competitive ad¬vantages. With careful planning, an entrepreneur can lessen the advantages of the large business vis-à-vis his operation and thereby increase his chances for success.

The strengths of large businesses are well documented. They have greater financial resources than small firms and therefore can offer a full product line and invest in product development and marketing. They benefit from economies of scale because they manufacture large quantities of products, resulting in lower costs and potentially lower prices. Many large firms have the credibility that a well-known name provides and the support of a large organization.

How can a small firm possibly compete?

• Small start-up firms enjoy more flexibility compared to larger firms and they also have capacity to respond immediately to industry or community developments. They can innovate and create new products and services more rapidly and creatively than larger companies that are caught up by bureaucracy. Whether reacting to changes in fashion, demographics, or competitive advertising, a small start up only needs days to make vital decisions unlike big companies.

• A small business can modify its products or services in response to unique customer needs. The average entrepreneur or manager of a small business has more knowledge of their customer base than the large company owners. If a modification in the products or services would meet customer service demands, a small firm can adjust better than a large one. Customers can even contribute to product development.

• A major strength of a start-up is that the people involved have a passionate, almost compulsive, desire to succeed. This makes them work harder and better.

• Finally, many small businesses and start-up ventures have a rare quality that comes from people who are fully engaged and doing what they want to do. This is “the entrepreneurial spirit,” the atmosphere of sheer excitement that is generated when people work together to create a chance for greater success than is otherwise possible. This can attract employees and inspire them to do their best.

The Strengths of Small Business
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