How do small businesses compete?
- Greater flexibility in responding to customer needs (customer service)
- USP/product differentiation
- By being niche providers as there will be little competition for niche markets
- Better stakeholder relationships (as there is a shorter chain of command) meaning less distance between managers and employees
- They also may be monopolists in their area e.g. a corner shop is better for consumers than a large store as they don’t to make big purchases as they might be expected to in a larger store.