Introduction

Small enterprises continue to exist despite the existence of giant enterprises for several
reasons. While giant enterprises may possess certain advantages such as greater
resources and economies of scale, small enterprises can leverage their unique
characteristics and adaptability to carve out a niche in the market. The following are
some key reasons why small enterprises continue to exist:

Local and Community Focus

Small enterprises often have deep roots in their communities. They can have built
strong relationships with customers, suppliers and other stakeholders within their
geographic areas. This local focus can create a sense of loyalty and support from the
community, as customers appreciate the economic benefits of supporting local
businesses. Moreover, small enterprises can tailor their offerings to meet the specific
needs and preferences of their local market, giving them an advantage over giant
enterprises with a more generalized approach.

Lower Overhead Costs

Small enterprises typically have lower overhead costs compared to giant enterprises.
They may operate out of smaller spaces, require fewer employees and have less complex
organizational structures. This cost advantage allows them to offer competitive pricing
and potentially higher profit margins. Moreover, advancements in technology have
leveled the playing field, enabling small enterprises to access affordable and scalable
tools that were once only available to giant enterprises.

Innovation and Creativity

Small enterprises are often more innovative and creative due to their size and lack of
bureaucratic processes. They can foster a culture of experimentation, take calculated
risks and implement mew ideas quickly. Small enterprises are often at the forefront to
disruptive technologies and business models, challenging established norms and finding
novel ways to meet customer needs. This innovation can help them differentiate
themselves and complete effectively against larger firms.

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Niche Focus

Small enterprises often specialize in a specific product, service or market segment,

allowing them to cater to a particular target audience. By focusing on a niche, they can
develop deep expertise, understanding the unique needs of their customers better than
giant enterprises. This specialization can give them a competitive advantage, as
customers seeking specific solutions are more likely to choose a small enterprise that
specializes in their area of interest.

Flexibility and Adaptability

Small enterprises are often more agile and flexible compared to giant enterprises. They
can quickly respond to market changes, customer demands and emerging trends. Their
smaller size allows for faster decision making, which enables them to adapt their
strategies and operations swiftly. This ability to pivot and adjust to changing
circumstances gives small enterprises a competitive edge.

Personalized Customer Service

Small enterprises can provide a more personalized and intimate customer experience
They often develop closer relationships with their customers, offering personalized
attention, tailored solutions and a greater focus on customer satisfaction. This
personalized approach can create customer loyalty and differentiate them from giant
enterprises that may struggle to provide the same level of individualized service.

Different Operation Needs

Small and midsize enterprises operate differently from large, multinational companies.
They may require fewer systems and narrower scope of operations for making them
suitable for certain industries and businesses.

Risk Management
Small businesses can diversify risk and test new concepts or products on a smaller scale
before scaling up, allowing them to be more agille, resilient and aduptive to changing
market conditions.

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Conclusion

In conclusion, while giant enterprises may have certain advantages, small enterprises
can leverage their flexibility, adaptability, personalized service, innovation, niche focus,
lower overhead costs and local community connections to survive and thrive in the face
of competition. By capitalizing on these unique strengths, small enterprises can carve
out a sustainable market position and compete effectively alongside giant enterprise.

Reference
Chikuni 2023. (The Red spot)
Jackson 2019 (American Psychological Association)

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