the challenges they face, and a few ways to move toward success.The Importance of Small BusinessesSmall businesses are arguably the cornerstone of economic growth and economic stability. They represent a substantial number of businesses worldwide representing more than 90% of the total of businesses and more than 50% of employment worldwide. However, the importance of small businesses extends far beyond these statistics.

create jobs –

Small businesses employ millions of workers and typically provide entry-level jobs which lead to employment ladder workers may climb creating even more opportunities.

innovate –

The majority of technology development and industry disruption comes from small businesses looking to unsettle the norms and challenge the status quo.

sustain local economy –

They provide local economies with support by keeping as much money in local communities as possible and supporting local sourcing.

flexible and adaptable –

Because they are not a large corporate behemoth, small businesses can respond to a market shift more quickly and/or more efficiently than a larger competitor.

diverse –

Small enterprises provide niche, unique products and services that align more closely with specific customer product and service needs.

Though small businesses create value, they encounter a range of challenges which may limit their growth opportunities and sustainability.

Restrictions to funding–

Obtaining financing can be challenging for small businesses because they may not have the collateral or credit history to secure loans.

Market competition –

Competing against larger companies and established brands is difficult because of limited resources for marketing and fewer brand awareness opportunities.

Regulatory compliance –

Small businesses are sometimes burdened with navigating complex legal requirements and tax obligations.

Technological Obstacles –

Putting in place technology can be costly, but may be necessary for businesses to compete in today’s digital economy.

Customer Acquisition and Retention –

Proactively marketing to build a base of loyal customers often exhausts their limited marketing budget.

Strategies for Small Business Success

To be successful in a competitive market, small businesses need to use specific strategies to mitigate challenges and leverage opportunities.

Utilizing Digital Marketing –

Using social media, email marketing, and search engine optimization (SEO) can increase brand recognition and customer engagement.

Adopting Technology –

Using cloud computing, e-commerce, and automation can simplify some aspects of your operations and be more efficient.

Create Customer Relationships –

Giving exceptional customer service will create customer loyalty and word-of-mouth referrals.

Networking and Partnerships –

Co-branding can lead to announcements for opportunities for growth and sharing information with friends and working with a cohort of partners can lead to opportunities.

Financial Management –

Managing a sound financial plan and to know your numbers and plan on managing expenses, co-branding can also lead to funding opportunities.

Adapt Based on Market Trends –

Following industry trends and changes in consumer behaviors will enable a small business to pivot their strategies.