Why small businesses are important

Then they use those pivots to make quicker data-driven decisions. In addition to spearheading innovation, Angelique Rewers, CEO of The Corporate Agent , said that small businesses act as competition to big businesses in the war for talent, which is impacting the standard for workplace culture and diversity. Due to strength and resources, large corporations have many advantages over small businesses; however, the opposite statement can also be made.

For example, small businesses benefit from a higher threshold for risk tolerance and speed. They can freely innovate and change, as needed, since they aren't blocked by as many protocols, guidelines, office politics and management that hinder big businesses.

Additionally, Clement said that small businesses typically benefit from fewer legal regulations. Since small businesses typically work closely within their local communities, they have the ability to better understand the needs of their customers. In addition to keeping a pulse on what consumers want and adjusting their strategies accordingly, small businesses offer a more personalized experience for their existing and potential customers. This is key, as consumers are increasingly demanding personalized products and services.

Small business owners shouldn't fear large corporations, and vice versa. The two can work together harmoniously; however, there are a few things that small business owners should be aware of when working with large enterprises. Clement said that large businesses follow internal processes and policies, which come with time frames to respect, rules to follow, and requirements to meet.

To combat this, he listed three strengths that small businesses need to succeed when working with corporate clients. Small firms have the potential to thrive in today's marketplace, as long as they stay vigilant. They are the lifeblood of the U. Innovation and Competition Because it can be more difficult for small businesses to stay relevant, they constantly have to work on adding new products to their shelves and new benefits for their customers.

Learn More Today! What type of degree are you interested in? Next Step We value your privacy. What Bachelor of Science in Business degree most interests you? Master's in Accounting. Master's in Information Systems. Master's in Business Administration. All of this innovation benefits the area a business is based out of since they start from home out. New products, concepts, processes, and so on, get their start in the communities they come from. Because of their direct connection to the community, small businesses tend to be more adaptable to changing economic climates.

As consumer demands shift, small businesses find themselves at the front line of making adjustments to keep their clientele happy in a way that larger companies cannot. As a result, customer loyalty tends to be much stronger. In times of economic downturn, many consumers make an effort to continue supporting their local favorites more than larger companies.

Small businesses generally work hard to keep as much business local as they can. This year, 4. How do small businesses support their local communities? They give, support, donate, and volunteer with the following organizations:.

Small businesses support many different local charitable organizations, including disaster relief services, senior citizen communities, and wounded veteran organizations. OnDeck is proud to support and empower small business owners across the United States.

For our second annual Small Business Community Impact Survey, we surveyed current and past customers to learn more about how they participated in their local communities in Most had been in business for over 10 years, and represented a wide of range of industries, from retailers to mechanics to accountants and lawyers.