During Small Business Week 2016, make a commitment to buy from small business.
Small business (SMEs) are key to American economy. They have generated over 65% of the net new jobs since 1995. There are almost 28 million small businesses in the US. Over 50% of the working population (120 million individuals) works in a small business, but only 7 out of 10 new employer firms survive at least 2 years. They are innovative and employ over 50% of the working population, but more employer businesses shut down than start up each month.
Cons of being a small business
During the start-up period entrepreneurs will find lots of issues to resolve. Nevertheless the most common and dangerous one is the lack of people development and professionalism. They in the end affect directly the quality of their products and services.
Startup, Small and medium sized business must continuously improve or die. Therefore a quality program becomes critical to ensure sustainability through time, but not all the entrepreneurs know about quality, most of them think it’s only for big companies. It is generally understood that quality control has been of great advantage to large organizations, but it is not so well know that the techniques are equally valuable to concerns with as few as 100 employees, there is nothing that did not also apply to small companies.
Studies in US and Canadian studies and Europe’s 500, show there are some features that are found in high growth SMEs:
- Innovation: innovators grow faster than no-innovators
- Attention to human resources: At the earlier stages management capabilities and employees motivation are crucial to survival.
- Emphasis on strategies relating to enhancing, updating or expanding their product line, and improving production. Successful fast growing entrants are those that translate their strategic emphases into action by undertaking R&D.
- Emphasis on hiring skilled employees and training them
- Balance, an emphasis on striving to enhance their capabilities in all areas, what we call, the SME deck.
Training is key to develop team members
Asking for advice from professionals and connecting with other small business owners are two ways of learning. We all can help each other to survive and succeed in the new millennials age. You don’t need to be big to seek for advice, you can start today by contacting us, Biztorming is a consulting firm created by entrepreneurs to help other entrepreneurs to succeed. Being entrepreneurs just like you we know exactly how you feel and what you need.
Pros of being a small business
Small business owners know their customer far better than big companies. They get in touch everyday and are able to adapt to their needs more quickly. Usually entrepreneurs create products on their own interest and the needs of local customer, filling a gap in the shopping centres. They can detect trends more easily and react to provide a better experience to the customers, more suited to what they really need.
A marketplace of tens of thousands of small business is the best way to ensure innovation, variety and lower prices in the long term.
How can you help small business owners? First of all, buying from them.
Start during the Small Business Week, and Join entrepreneurial communities like Brazzlebox to help develop your business!
Brazzlebox is a great resource for entrepreneurs. It is a free online community for small businesses to connect.