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Top 9 advantages of small and medium-sized enterprises

small and medium-sized enterprises

Starting a business is a complex task, especially when the characteristics of the business
you want are typical of a large company. Entrepreneurship involves investing time, money,
and efforts so that the project takes shape and overcomes the obstacles along the way.
However, the bigger your company is, the greater the efforts you will have to make in order
to achieve your business objectives.

For your business to be successful, it is best to start without being too ambitious and grow
progressively. Creating a small or medium business is the best alternative to start it all.
Small and medium-sized companies are defined by the number of workers that comprise it,
which should not exceed 250.

Although small and medium-sized companies have some disadvantages such as greater
difficulty in obtaining financing, less access to technology or less bargaining power with
suppliers, they also have several advantages. Let's see the top 9 advantages that they have:

  • Personalized and better customer service: Small and medium-sized companies, in
    comparison with large companies, can offer personalized attention, for example, they
    can more easily ensure that the same worker handles a client throughout the
    purchase process. They tend to be closer to their customers, which allows them to
    better understand their needs, tastes, and preferences.
  • Better access to market information: The size of your market and the closeness with
    your customers allows you to better know your target audience and to be aware of
    the new changes that may happen.
  • Greater flexibility to adapt to market changes: They have the advantage of adapting
    better and faster to the new needs, tastes, and preferences of consumers because of
    their simple structure.
  • Greater capacity for innovation: Small and medium enterprises have the advantage
    of being able to innovate constantly, of being able to launch new products, services
    or promotions to the market without taking too much risk.
  • Greater ability to correct errors: They have the advantage of correcting their mistakes
    quickly, for example, they have greater facility to change a product that did not
    succeed, a bad publicity campaign, or a bad choice of the target audience.
  • Greater commitment: The workers usually have a greater contribution of ideas and
    suggestions for the general improvement of the company, which makes them feel
    more useful and, therefore, more identified and committed to it.
  • Greater productivity: When receiving a personal feedback from the employer and the
    managers of the company, workers tend to be more motivated and, therefore, more
    productive.
  • Cultural diversity: They often hire workers with different cultural backgrounds, which
    can create a diverse and multicultural workforce. Employment laws generally make it
    illegal for employers to discriminate on the basis of race, color, religion, sex, age,
    ethnicity or nationality when making hiring decisions, which directs companies to
    focus on hiring more qualified workers.
  • Businesses diversity: Another potential benefit is that workers of different ethnicities
    and nationalities may be able to help companies to diversify their activity to new
    markets. For example, a worker in Germany might be aware of potential business
    partners and the demand for untapped customers in Europe. International experience
    and cultural knowledge can help workers identify successful export opportunities.

We, at A&P International cross-cultural business solutions, believe in all kind of small and
medium-sized enterprises. We are sure that with the best tools and help you can achieve
any goal with your company. Feel free to check our website to know more about us and our
services.