Small and medium enterprises are small businesses that offer goods or services to consumers, small groups of people, or other small organizations. They can be good for an economy because they create jobs and promote competition among companies.
However, there are some challenges that small business owners need to overcome before they are able to claim their spot in the market. That includes business promotion, competing with the bigger giants, using quality retail packaging, and others in order to establish their brand recognition in the market.
In this blog post, I will discuss these SMEs in detail and will elaborate on their importance for the economy, and will share some tips on how you can establish a successful small enterprise.
What Are SMEs?
Small and medium enterprises are small to medium-sized businesses that offer a range of products or services. They usually employ fewer employees, so they can be small in size but big on impact.
Why Are SMEs Important for the Economy?
SMEs have been proven good for an economy because they create jobs and promote competition among companies. However, there are some challenges that small business owners need to overcome before they are able to claim their spot in the market. For these reasons, SMEs deserve more attention from policymakers around the world who want economic growth without increasing unemployment rates.
Small businesses have a more significant impact on the economy than larger companies as they employ over 50% of people working in the private sector, whereas large corporations only employ around 15%.
Moreover, small firms also make up approximately half of all exports from the European Union, which highlights their importance for the economy of any country.
Tips to Establish a Successful Enterprise
There are many small business ideas that can be successful if they are given the right support. The tips below will help you establish your own small enterprise:
1) Identify Your Niche Market
It’s easier for small business owners with limited resources to specialize rather than compete against large multinationals. So, start small rather than taking everything on at once. Focus on one small task you’re able to manage and work on that to the exclusion of all else.
2) Invest in Small Businesses
Give them access to loans and grants, make it easier for them to find talent, and provide customer financing programs. These measures would not only reduce unemployment but also boost economic growth rates.
3) Focus on Your Business Presentation
It’s easy for small businesses to fall behind the competition if they don’t present themselves well. Invest in a website and social media, stay on top of marketing trends with guest columns or advertisements where appropriate.
4) Focus on Marketing
The small business owner is not only expected to produce quality products but also find ways to market them as efficiently as possible. Join networking groups and conferences, sponsor events like walks/runs or festivals, become a member of the Chamber of Commerce in your area. It can be extremely difficult for small enterprises to compete against larger companies without these resources at their disposal.
5) Take A Look at Pricing Strategy
Don’t be afraid to charge a little more for small businesses. They’re worth it, and you’ll probably need less marketing to capture clients as well due largely in part to the prestige factor (i.e., people are willing to pay extra when there’s something “unique” about your product).
6) Get out into the Community
Small business owners have access to networks that can help them find new customers, consult with experts who understand their struggles better than anyone else, get advice on how best to grow their company. And work at being an active member of these groups. So regularly go, even if just for networking purposes, or attend seminars where small-business topics will likely come up for discussion.
7) Stay Updated with the Legislations
It is important to know the small business legislation and how it can help small businesses, such as establishing contracts with suppliers or employees. Every country has its own laws that govern small-scale work, so you need to be knowledgeable of them all in order for your small enterprise to succeed.
An excellent way to do this is by attending seminars on these topics also while networking through social media channels online (i.e., Twitter). You could even have a session on these subjects at your place of work which will further ensure knowledge spreads quickly among colleagues who might not already know about small company legislation.
8) Advertise Your Enterprise
To even reach small-scale customers, you need to market your small enterprise. Social media is perfect for this as it’s a very relational form of marketing that allows small businesses like yours to connect with and speak directly to their audience, which can be both nationwide or worldwide.
Posting on social media includes the use of hashtags (#), so not only are people aware of your small business, but they will also share what you’ve said along with images (i.e., pictures). With such high visibility, potential clients might come across your small company before they know it.
If you’re looking for other ways in which new customers may find out about your small-scale work, then word-of-mouth could be an excellent option as well.
9) Offer Special Deals to Your Customers
Offering special deals to your small-scale customers is a great way in which you can encourage repeat business. If they’re impressed with the quality of what they’ve received for their money, then this will be incentive enough for them to return again and again.
10) Invest on the Packaging Boxes
You need to invest in retail boxes, the kind of package that is small enough to fit in a customer’s hand. It would be wise for small businesses to invest in their own packaging boxes as well since it can provide them with more profit than if they were just buying from other sources in bulk.
I will recommend conducting market research and choose a trusted packaging partner like Impression Ville, so you can get the best packaging boxes for your business.