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
- 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