- While large businesses may seem to overshadow their smaller counterparts, small businesses play a key role in influencing them
- Small businesses have advantages over large businesses such as more free reign for innovation and less red tape
- Small businesses and large businesses can produce harmonious relationships
Small businesses are often hailed as a cornerstone of the economy due to their ability to stimulate the local economy. Indeed, U.S. Small Business Administration statistics show that the vast majority of American companies have less than 500 employees, and that these firms are responsible for two-thirds of newly created jobs and one-third of the nation’s export value. But while larger companies only number around 20,000, they often seem to have disproportionate competitive strength.
Nevertheless, small businesses play a key role in influencing larger firms. The smaller workforces can be more agile in developing innovative products and services, are subject to fewer legal regulations, and are more likely to identify emerging needs in the community.
Small businesses can also set up mutually beneficial relationships with large companies as vendors, customers, or partners.