Why SMEs are important to any economy

Successful businesses help economies to thrive. What if the scale of the business was taken into consideration? Do SME’s really make an impact on the economy? 

For a growing economy, businesses should be of great value. In theory, if you think larger the business module higher the value towards the economy – think again. Let’s look at some of the most crucial factors that add value to a business, regardless of their scale, and see how SMEs deliver in each case.

Adaptability and quick response

In an ever-changing economic climate, agility and adaptability are what separates a considerable loss or a gain.

Timing is everything. Micro-businesses have their owners working on the front lines of their businesses’ while the contrary has the influential decision-maker detached from the customer experience resulting in late response to trends alongside slower decision making. Thus, SME’s are better at identifying and embracing new trends in the industry, than their larger, more complex rivals.

Customer loyalty

Don’t get us wrong. Large enterprises provide the greatest convenience. But in an attempt to serve a larger audience, they tend to over-generalize their scope. Focusing on impressing and paying off (rich and possibly foreign) shareholders than delivering customer needs causes them to loose on customer loyalty.

Small businesses, on the other hand, are all about customer service, loyalty, and giving back to the community while specializing in the areas of service provided. 

Local Engagement

Small sector occupations provide opportunities to many capable and potential entrepreneurs who are deprived of appropriate opportunities. Together with the element of low risk in SMEs attracts a higher growth in employment. SME’s help releases scarce capital toward productive use of the community and empowers a strong middle class and emerging lower class, reducing wealth gaps.

Community Identity

Due to their uniqueness and rarity, SME’s helps in the creation of localized value, creating an identity to the local areas, unlike highly branched and overly mainstream businesses. Customers don’t always prefer mainstream, especially tourists, whose sole purpose of travel is to seek unique experiences. SME’s, therefore, act as a linkage institution between citizens, tourists, entrepreneurs and city officials strengthening community relationships, unlike any other module. 

Diversity

Small businesses also have more flexibility, and can be started by almost anyone. That makes them more diverse in form, function, culture, and potential than large corporations. The greater diversity we have in the economy, the easier it is for the economy to withstand tough conditions.

It is made pretty clear that SME’s provide occupations of greater value than other entrepreneurship schemes, thus helping a country’s economy. In developing countries, they account for 60% of GDP and over 70% of employment. While in developed countries, they provide a crucial contribution to mature economies – especially ones hit by negative growth and stagnation.

Small businesses and startups are what keep our economy strong, if you’ve ever considered starting a business, know that there is no “perfect” time, you have to take the plunge at some point. Entrepreneurs like you are what keep the market alive.

If you are interested to change your life with business opportunities, our SME consultants can show you many ways to start your business. Please contact us through our website info@crevaty.com  

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>