Why We Love Small Businesses (And You Should, Too!)
Happy National Small Business Month! This month we celebrate the hard working small business employers and employees who bring economic stability, innovation and drive to the American workforce. There are various reasons why small businesses have such a huge impact on our culture, and equally as many reasons why we love working with small businesses. Keep reading below to learn why you should consider working with a small company for your business needs and how the strength of our economy relies on start up companies.
Advantages of working with and for a small business
As the article, “Advantages Small Companies Have Over Large Companies,” from the SmallBusiness.Chron.com states, “Small businesses have many advantages over their larger competitors. Much like trying to turn an aircraft carrier, larger companies are not as nimble and swift as small businesses. Large companies often are hampered by their size, making changes difficult and slow. Small businesses can also be more innovative and try new things because they are not slowed by past experiences and accomplishments. The pace of a small company is often very fast, and this speed is frequently an advantage in getting new products to market.”
In the article mentioned above, there are a few reasons listed as to why small businesses are great to work with. See a quick review of some of those explanations below.
Employers and employees of small businesses are more flexible when it comes to making alterations to plans, products, campaigns, etc. With less people involved and simpler approval strategies, small companies can more easily adjust their plans. Large companies often follow a specific protocol in order to make changes. These practices take a significant amount of time as proposals are passed around from desk to desk seeking final approval.
Small businesses are like a family. You all work hard together, focus on the same goals and treat each other like family. When an employee is valued like family, employees express more charisma and positive energy, which flows into customer and client relationships. It’s far more enjoyable to work with people who love their job and coworkers; they desire to work harder for their company and clients.
Speaking of positive working relationships with customers, small businesses tend to have closer ties to their clients than large businesses. Employees of small businesses have more time to meet with their clients, develop more personal relationships and create long-lasting connections. With large companies, clients can expect to meet with different people in a variety of departments, stay on a very professional level in terms of relationships and take longer to make changes per clients’ requests.
A Personal Touch – Research Proven
In the article, “Consumers Favor Small Businesses Because of Their Customer Focus,” by emarketer.com, a study conducted by AYTM Market Research found that “personal service was the No. 2 reason US internet users preferred small businesses vs. large companies, cited by 52.7%.” Prices actually did not play into that preference. Americans like to support small businesses despite a possible higher price in comparison to the same product or service offered by a large company. See the chart below from the above article explaining the results of the AYTM Market Research study.
Small businesses take the time to learn about their customers and make changes as they request; therefore, customers like the personal relationship and feel like they are being heard. Plus, there are many other factors that contribute to small business favoritism as researched by Web.com/Toluna in the following two charts.
Small Businesses and the Economy
Small businesses are small but mighty, and necessary to both the local and national economy. Americans rely on small companies for employment opportunities. Plus, small businesses help large companies succeed. SmallBusiness.Chron.com wrote an article, “How Important are Small Businesses to Local Economies?” to explain how small businesses contribute to our economy strength. Below is a summary of that article.
Small businesses employ 500 or less employees and “represent 99.7 percent of all employer firms. Since 1995 small businesses have generated 64 percent of new jobs, and paid 44 percent of the total United States private payroll, according to the SBA,” states SmallBusiness.Chron.com. As far as the establishment of a strong local economy, small businesses:
- Revitalize small communities by bringing new ideas and opportunities for consumers.
- Provide nearby jobs to locals.
- Are innovative. Employers running small businesses are creative and regenerate current products and ideas, or create brand new ones.
- Support large businesses in functions like outsourcing.
- Grow. Very fast-growing, successful small businesses don’t stay small for long. They too, may become a large company, which continues to greatly provide for the local economy.
Due to their customer-focus strategy, small businesses adapt quickly and easily to changes. When times are tough, customers remain loyal to their local businesses because these small companies tend to alter their ways to fit their customers’ needs. In comparison to larger companies, small businesses tend to handle economic ups and downs more steadily and rebound faster.
For more information on the advantages of working with small businesses, the research backing their success and how they aid in economic strength, be sure to read more via the links provided above. Small businesses offer a variety of advantages to our local and national culture. We want to thank those of you who support and/or work for a small business. The time and energy small business employers and employees put toward making a company succeed is invaluable. Happy Small Business Month!