The Advantages of Small Businesses

Most UK businesses today are small, two thirds are owned and run by one person and nearly 90% employ less than 6 people. Small businesses can have many advantages over their larger competitors. Smaller businesses can have much better control over their output and interaction with customers, whereas large companies are often disadvantaged by their size. They are less involved with their customers and implementing changes can be problematic and slow.

Flexible
For a smaller business, plans and strategy can be changed much faster than larger competitors. Products can be brought to market more quickly when there are less people involved in its creation. Larger businesses must involve more people in new product development which slows down the process.

Personal connection to the customer
Smaller businesses are much closer to their customers. These businesses get more opportunities to meet customers more frequently and develop more personal relationships. Consequently, customers are known by name and their needs are known to the businesses. Larger organisations have more layers and procedures in place. It can often take big businesses months, even years to realise and address an issue of customer or staff satisfaction. These layers and procedures also prevent close relationships with their customers and as a result, larger organisations can spend a lot of money trying to replicate personal connections with customers.

Respond quickly
Smaller businesses can spot issues more quickly which is good for crisis management and minimising risk. Complaints can be handled faster and on a more personal level as they go straight to the person who can implement a change or correct an issue. In addition, any improvements or suggestions can be received, and products or services can be adjusted to feedback, ultimately adding more value to the businesses offering. 

Employee Motivation and Involvement 
Employees feel more valued and important in the overall company achievements. In smaller businesses, each employee play’s a greater part than they would in a larger business. This is a great motivation, as employees can tangibly see the effects their work has on the firm as a whole. Small businesses tend to be less constrained by the particulars of a job description, increasing the likelihood that employees will get to work on engaging projects that would otherwise be off limits. Job roles are more firmly defined in large organisations limiting an employee’s involvement. 

Access to management
The degree to which employees are able to interact with the head of the company is a driver of workplace satisfaction. Owners of small businesses are more reachable which provides their employees with the feeling they can influence their manager and build a good relationship.

 


Rachel Whelan

Rachel Whelan

Natural beauty with a killer smile, always happy to help, impeccable communicator, pays great attention to detail and takes pride in her work, highly motivated team member, loves music and online shopping.