Managment Case

Some people have the erroneous idea that small business cannot effectively compete against larger competitions. The concept is simply not true.

For example, if someone ask you since the economy has dropped how have a lot of people been coming up with wealth, if you said small business you would be right.

Why, then, is there such misinformation about the strength, versatility and wealth of small business? The answer is that usually larger corporations garner the lion's share of publicity. We read about larger corporations, such as Microsoft, IBM and GMC every day. That's because, taken singly, each small business, in and of itself, doesn't have a substantial impact on the national economy; whereas, the financial health of General Motors, can have quite an influence on our nation's economic health. But there is a way small business can compete with these giants it's called a niche. A niche is a special quality or group of qualities that sets the small business apart from its larger competitors. It also has also been described as a small, specialized business market. Usually, one of the chief characteristics of a niche revolves around service. There is something special and personal in the service that a small business renders to its customers that sets it apart from its larger competitors.