What is so special about small business?
In America, we often look with admiration upon the small business owner. A story of how a small business made good with a product or concept is a favorite with any newspaper or magazine feature writer. What makes small business such a favorite in this country?
The small business in the town is usually someone we know personally. They may have been operating the business for years, perhaps even generations. This means that in all likelihood, the people operating the small business know you too. They know your likes and dislikes; they know the needs of your household and whether you will be the person who will appreciate the special item which they just received in inventory.
Flexibility is another characteristic found in a small business. They do not have to go through layers of management and supervisors in order to change the way something is done. If Daylight Savings time is interfering with their business, they can open an hour later or stay open longer during months when the days are longer without going through corporate headquarters. They do not have to carry a particular brand or item if they know it won’t sell to the local customers.
Often, but not always, their overhead costs will be less than that of their larger competitors. Unfortunately though, they may not be able to purchase inventory items as cheaply as the large retailers, so prices may be somewhat higher. The converse is also true. The small business that markets only small lots or one-of-a-kind items will not be wholesaling to the large retailers, because they simply cannot produce their specialty items in large enough quantity to supply the large retailer. Instead, they can produce truly unique items and have a market for those who appreciate the advantages of shopping at a small business.
Although most people think of a small business as one which has just not had time to grow large, it could be that remaining as a small business and enjoying it is by far the better option. You can stay in tune with your customers, enjoy providing just the right item or individualized service. You also can remain on the front lines of your business instead of moving further and further away from the interaction with the customers. The small business still allows you to do what you do best, which hopefully is why you chose to be an entrepreneur in the first place.
by Nathan.Smarty 19 years ago