Understanding Market Niche: Why Small Businesses Matter

small business owner

No matter where you are in the world, your immediate environment is surrounded by big businesses like tech giants such as Samsung and Apple, car manufacturers like Ford, and even the nearest McDonalds. And with the advent and consistent process of globalization, we will only see this trend of interconnectedness continue to grow into the future for all manner of business.

However, most entrepreneurs fail to notice that while these big-name companies may output larger numbers and operate on a worldwide scale, it doesn’t necessarily translate into everyone else favoring them. You see, what these prominent names lack is a personal touch, a trait that only small local businesses have and are their single-most important advantage against large businesses. And, when we’re talking about understanding the local market niche, even the biggest of brands can’t hold a candle to your long-established diner.

Why Should You Consider It?

Any entrepreneur and professional businessman will tell you that information is your number one asset. It is an essential business resource that lets you act upon informed decisions and reap the most benefits. And, who else would know better about your locality other than yourself, the person who’s lived there for years and knows what the people want.

People think too long and hard on grand ideas, trying to take the fight where they have zero cards in play. Instead, take the battle to your home turf, where you hold all the advantages and know the place like the back of your hand. So, before you zero in all your investments into a potential tech startup, try considering the option of opening something much closer to home.

#1 Strong Grasp on Community Values

Culture and community are two of the most important factors that impact how well a new business is received, and while they mostly operate in the background, people unconsciously make these evaluations. For example, while robot service in Japan is appreciated and welcomed, it would have a much harder time penetrating a locality that prefers human interaction. And the same goes for any big business that doesn’t grasp the community values, which is why small businesses reign supreme in this regard.

  • Better Engagement and Experience: In terms of engagement and experience, small businesses also have the upper hand because they know the people. They are very close with their target market and have a much easier time managing the daily operations. They don’t need to worry about pleasing the entire world. They only need to concern themselves with their loyal regular customers.
  • Provides Local Jobs: While the industrial revolution saw a major boom in large companies jumping from city to city, setting up shop, and providing new jobs. More and more people are starting to prefer the local job market to keep the local business culture alive and because it’s a more personal connection.

small business owner

#2 Ease of Access

Unlike big brands that have to delegate main offices for every region, small local businesses are located in one place, making them easy to find and accessible to their target audience. Customers wouldn’t need to go through the excruciating process of handling long calls and getting passed from one tech support to the next. All they need is to ring up the local telephone and have their worries fixed in an instant.

  • Personalized Assistance: While professionalism is observed when getting assistance from prominent companies, indifference can come off as stiff, and some people prefer the interpersonal connection they can make with local businesses. Whether it’s providing tax services for truck drivers or calling the local handyman for a repair, the sense of personalized assistance is valued.
  • Stronger Business Relationships: Just as a local business holds strong ties with the local people, they also have the upper hand with stronger business relationships. Since they rely on other local businesses for sourcing materials, procurement of ingredients, and other things, a stronger bond is developed because they’re working for the same playing field.

#3 Less Costly

Last but not least, starting a small local business is a lot more affordable than handling a big-name company that operates on a global scale. Yes, there is the matter of scalability in which big businesses win out, but for the newbie entrepreneur that’s just starting out, you don’t actually have the capital to cough up.

A small business is much more realistic, and because they don’t have to worry all too much about expansion or higher maintenance costs, budgets can be appropriated for innovation and keeping top-quality. On top of this, with good news regarding the pandemic fallout coming out and a stimulus package to match, now’s the perfect opportunity to take that leap of faith.

A Unique Personality

Overall, while big businesses can realistically earn more money, small businesses carry a unique personality that no big brand could ever replicate. And, if any of these reasons tie in with your idea of entrepreneurship, we strongly recommend that you help keep the local business culture alive and give small businesses a chance.

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