In the business world, size is often equated to success.
The bigger the business, the more successful it is. Big companies, with their established dominance and vast resources, seem to have an overpowering advantage over their small counterparts. In this day and age, that is not the case anymore.
Small businesses have emerged as strong players in the business landscape, competing against industry giants and sometimes even surpassing their larger competitors. From agility to creativity, small businesses possess unique advantages to stay ahead in the game.
Keith DeMatteis discovers how small businesses not only endure but excel alongside large enterprises, leveraging their innovation to gain a strong competitive edge.
David vs. Goliath: How Small Businesses Compete with Industry Giants
Small businesses are the backbone of the country and the lifeblood of the economy.
According to U.S. Small Business Administration (SBA), small enterprises account for 99.7 percent of companies in America. They also accounted for 65% of net job creation from 2000 to 2017.
Indeed, small businesses are important for various reasons. These include bringing in innovation, exports, and job creation. More importantly, small-scale enterprises leverage their resources in ways that help their communities, which stimulates the economy.
Leslie Hassler, a small business scaling strategist, says “small business owners today not only care about their personal success, but also the success of their communities.”
To an outsider, it may seem like big companies hold the reins. When it comes to resources and strength, large enterprises have advantages over small businesses. However, small businesses have the upper hand in many other aspects including:
Agile
Big corporations often observe their smaller counterparts to stay updated with trends and to see what’s working in the market in real-time. One advantage that a small business has over big companies is their agile management.
Because of their agility, small enterprises can test new marketing methods, processes, systems, and technologies at a much faster pace. They are also able to make business decisions faster.
Creative
Small businesses spearhead innovation. Because they are not hindered by guidelines, protocols, strict management, and office politics, they are free to change and innovate as needed.
They are also able to create workplace cultures with diversity, wellness, and programs that attract great talents to their team.
Here are a few advantages of small companies over large corporations when it comes to innovation:
- The concept stage to the execution stage is faster because ideas don’t have to go through a team of executives or different levels of approval
- Smaller companies have a smaller workforce which means stronger teamwork, which means they can achieve shared goals quicker
- Small businesses can adapt to tech revolutions faster
- Growing companies have a stronger drive to innovate since corporations have already established a strong foothold in the industry
- Small companies are closer to their customers meaning they can quickly and continuously innovate their products according to their feedback
Customer-Centric
Small companies usually work closely within their communities which gives them the chance to get to know their customers’ needs better. Because they are agile, small businesses can be hyper-responsive to their customers and tend to their concerns faster than big companies can.
On top of that, small enterprises are able to offer their customers more personalized products, services, and experiences, something that consumers are increasingly demanding.
The agility, innovation, and commitment to customer satisfaction of small businesses have given them a competitive edge that transcends size. In the war for market dominance, small businesses have emerged as threats to even the largest companies and biggest corporations.