Top Advantages Small Businesses Have Over Big Corporations

Top Advantages Small Businesses Have Over Big Corporations

Starting a business can be a little bit intimidating. You will have to face a lot of challenges and struggles that big corporations never have to worry about. Concerns over cash flow, a nonexistent reputation and limited resources are some of the problems you will deal with. But if you look at it this way, you will never let your company compete a bigger one for a given client. Small businesses actually hold a number of advantages over bigger businesses, you are not aware of.

Top Advantages Small Businesses Have Over Big Corporations


Big companies are often forced to make decisions with teams of people, while small businesses are faster and easy to adapt. Small businesses may have a business plan and strategies in place, but there’s nothing confining you to them – you can do whatever you want in order to succeed. Big companies are forced to follow a model to keep the customer base, investors and board of directors happy.


Big companies are filled with offices, cubicles and walls, and people from marketing don’t know the people from accounting. Small businesses work with smaller teams, closely together. This make it easier to make group decisions, and usually leads to a more satisfying, enjoyable, immersive work environment. Use this strength to develop your company.

Less Bureaucracy

In large businesses, everything should be formalized. While you might have some rules and formal processes, your small business doesn’t have a fraction of the bureaucratic nonsense that your large competitors do. You work more efficiently and make decisions faster because of it.

Competitive Pricing

When it comes to pricing, each industry must consider different factors. For instance, in food product development, larger companies have pricing advantages as they have more equipment and can save money on items per piece. However, for more industries, small businesses have the advantage when it comes to pricing. Unlike the bigger corporations where products and services are churned out by a multi-level corporation, small businesses are priced more aggressively because fewer employees are using fewer resources to develop the same products. You also have more flexibility in pricing as you are open to negotiation to secure more clients.


Small business tend to have more accessible brand personality than bigger businesses. This is because small businesses are often run by a few people and haven’t had much time to develop. The founder is just another member of the team, shows up at all meetings, giving a face to the company. The employees often have more freedom, but also have a smaller salary. However, people find the small businesses more fun to work with, and some customers will gravitate toward you just because you are new in the industry.

Use these advantages during your first few years of operation. Big corporations may have the drop on you when it comes to influence and resources, but your underdog and agility status will balance out the odds. And if you can use some strategies that will help you emphasize these advantages, the chances to succeed in the long term are greater.

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