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. “While all businesses must follow the law, some specific laws apply differently depending on the size of a business, usually with additional requirements for larger businesses compared to smaller businesses,” said Clement. “This is especially true when it comes to human resources, with specific responsibilities applying when a company grows over 20, 50 or 500 employees.”
Since small businesses typically work closely within their local communities, they have the ability to better understand the needs of their customers. “The biggest advantage – and the one we hear most often cited by corporate customers – is that small businesses are hyper-responsive to their needs,” said Rewers. “They can turn on a dime and, in today’s world, agility is everything.”
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. [Read related article: How Personalized Customer Experience Can Define Your Business]