Small businesses are considered the backbone of the United States, and micro businesses being the subset of the small business community, contribute the same. In addition to providing global economic stability, small businesses are creating jobs while keeping the economy moving in the smaller geographic locations. As per the U.S. Small Business Administration, small businesses make up for 99.7 percent of U.S. employer firms.
Small businesses are one of the most important sectors to be watched. Also, according to James Noe, an analyst at Sageworks, “it is the small business firms that drive the bulk of the GDP and job creation in the U.S.”
The importance of small businesses is not being overstated and the points listed below will help you understand why the small business community is referred dynamic.
Better connection with the consumers
Since they wear many hats, small business owners have a greater advantage of knowing and understanding the target audience better. They can easily engage with their customers anytime, anywhere without much effort.
According to the report from AYTM Market Research, U.S consumers prefer small businesses over large firms because of the personalized experiences they provide. Also, a study by Web.com and Toluna gave similar results, where the US customers considered customer service as the factors for choosing small businesses.
More Focus on Niche Market
Small business scores high when it comes to tapping niche market. It’s not easier for small business firms to compete on a global scale, which gives them a better reason to find a niche. And by avoiding bigger markets, they find it easier to define what they do and satisfy specific marketing needs with limited resources.
With a niche market, small businesses have less competition, better brand loyalty, and increased financial gain.
Quick in Adapting Tech and innovation
Innovation is one of the key elements for business development. Consumers look for innovation in products and services they use.
When it comes to innovation, small organizations are quick at adapting to new technologies. Adapting to newer technologies are feasible and cost-effective for smaller firms where larger firms will need a much larger timeframe and incur huge costs to change over to a newer technology platform. With the tech advantage, employees working in smaller firms find it easy to share ideas better and quicker across departments and promise better customer engagement, improved service, and thus have a better production and innovation.