SMEs play a crucial role in the economy of many countries around the world.
Did you know MSMEs account for 90% of businesses, 60 to 70% of employment, and 50% of GDP worldwide?[1]
As the backbone of societies everywhere, they contribute to local and national economies and to sustaining livelihoods, in particular among the working poor, women, youth, and groups in vulnerable situations.
These past few years have seen MSMEs battle to survive in a world impacted by conflicts, commodity dependence, geopolitical tensions, and the economic instability of the pandemic.
Many did not survive.
Luckily in Australia, we have governments that support and appreciate the importance of MSME to the community.
The Australian and state and territory governments provide selected grants to businesses. There is also training available for those starting up.
Manly local councils offer support and connection facilities for SMEs and there are Facebook groups, meet-ups, and many networking facilities available.
If you are not currently using these available resources, it is time you were.
So why should we support MSMEs over larger corporations?
Well for a number of reasons.
Namely,
Personalized Attention:
o MSMEs can provide more individualized attention, understand your specific needs, and offer tailored solutions.
o If and when problems occur it is much easier and more effective when you are dealing with someone you know.
Flexibility and Agility:
o MSMEs are generally more agile and flexible in their operations compared to larger enterprises.
o They can respond quickly to customer feedback, adapt to changing market conditions, and make swift decisions.
o This agility enables them to provide customized solutions and address customer needs promptly.
Competitive Pricing:
o Micro businesses typically have lower overhead costs compared to larger companies. This can result in more competitive pricing for their products or services.
o Working with a micro business can provide cost advantages and potentially save you money compared to larger, more established competitors.
Specialized Expertise:
o Microbusinesses often specialize in a specific niche or industry.
o As a result, they can develop deep expertise and knowledge in their area of focus.
o By working with a micro business, you can tap into their specialized skills, insights, and experience, benefiting from their in-depth understanding of your particular industry or market
segment.
Local Economic Impact:
o Supporting micro businesses contributes to the local economy by creating jobs, boosting entrepreneurship, and circulating money within the community.
o By working with a micro business, you can directly contribute to the growth and development of your local area.
Direct Communication and Collaboration:
o Micro businesses typically have fewer layers of hierarchy, allowing for direct communication and collaboration with the business owner or key decision-makers.
o This direct interaction can lead to more efficient and effective problem-solving, better communication, and a stronger sense of partnership.
Innovative Solutions:
o Microbusinesses often thrive on innovation and creativity.
o They are more likely to experiment with new ideas, technologies, and approaches to meet customer needs.
o Collaborating with a micro business can expose you to unique and innovative solutions that may not be readily available from larger, more traditional organizations.
Supporting Entrepreneurship:
o By working with a micro business, you support and encourage entrepreneurship.
o Micro businesses are often started by individuals who are passionate about their work and are driven to make a difference.
o Your collaboration can provide them with the necessary support, resources, and encouragement to grow their business and contribute to the entrepreneurial ecosystem.
So next time you are looking for a service provider, why not think small?
[1] www.un.org/en/observances/micro-small-medium-businesses-day