The Magical Rise of Small Business Entrepreneurship
The magical rise of small business entrepreneurship arrived as an aftermath of the global recession on 2008. It is not strange that the aftermath of a recession can be a complete new face of commerce. However, 20th century economists had predicted the growth of mega brands and multinational giants into bigger powers. They had never assumed that SMBs that one suffered from the pressures of competition from the larger players would be the elements that kept big machines running.
In 21st century economy, SMBs and private enterprises grew to become the fuel that kept commerce running. Before we study the reasons for such a change, it is important to note that this growth happened in less than 2 years! When the recession hit in September 2008, financial bodies like banks and financial organizations had declared their inabilities to provide capital for ventures. Bigger companies who depended on banks for their running capital slumped to a downhill production scale. SMBs however run on their own limited resources and capabilities. Thus, private entrepreneurs became true saviors during the worst financial crisis of recent times.
The reason why companies opted for small business entrepreneurship services during the recession begins with their prices. Companies needed to keep their production rolling, even in limited quantities to retain clients. Only SMBs could provide continual quality goods at prices which allowed profits even after margining the expense of third party production. Without the private enterprises running to fill in the requirements of bigger companies; and without their lower price goods, this would be impossible.
The power of SMB production capabilities was not only their affordable pricing, but quality. People have a misconception that SMBs and smaller enterprises can never live up to the standards required. Today, we know that the intense competition between SMBs in this gritty market ensures that their quality is high at the lowest margins of profit. It also ensures that the competition is more selective, as unworthy enterprises get crushed by the competitive pressures.
The third and most important factor for the rise of SMB's is the advantage of faster production. When a single company is undertaking all the responsibilities, the process is much slower. This became one of the major advantages of utilizing small business entrepreneurship in big projects. With individual companies dedicated to particular fronts undertake their responsibilities separately, time and money is saved. All the bigger company has to do is quality analysis and assembly before submitting to the client!
In 21st century economy, SMBs and private enterprises grew to become the fuel that kept commerce running. Before we study the reasons for such a change, it is important to note that this growth happened in less than 2 years! When the recession hit in September 2008, financial bodies like banks and financial organizations had declared their inabilities to provide capital for ventures. Bigger companies who depended on banks for their running capital slumped to a downhill production scale. SMBs however run on their own limited resources and capabilities. Thus, private entrepreneurs became true saviors during the worst financial crisis of recent times.
The reason why companies opted for small business entrepreneurship services during the recession begins with their prices. Companies needed to keep their production rolling, even in limited quantities to retain clients. Only SMBs could provide continual quality goods at prices which allowed profits even after margining the expense of third party production. Without the private enterprises running to fill in the requirements of bigger companies; and without their lower price goods, this would be impossible.
The power of SMB production capabilities was not only their affordable pricing, but quality. People have a misconception that SMBs and smaller enterprises can never live up to the standards required. Today, we know that the intense competition between SMBs in this gritty market ensures that their quality is high at the lowest margins of profit. It also ensures that the competition is more selective, as unworthy enterprises get crushed by the competitive pressures.
The third and most important factor for the rise of SMB's is the advantage of faster production. When a single company is undertaking all the responsibilities, the process is much slower. This became one of the major advantages of utilizing small business entrepreneurship in big projects. With individual companies dedicated to particular fronts undertake their responsibilities separately, time and money is saved. All the bigger company has to do is quality analysis and assembly before submitting to the client!
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