One advantage large businesses have over small businesses is that they have more money, thus more resources and can do more things than their smaller competition can. For example, if a small business works with Wal-Mart, they must confirm to Wal-Mart’s demanding standards of packing, shipping, logistics, and more. For a larger business this is no problem, but many smaller businesses don’t have the staff to please one customer and their other customers.
Think about manufacturing. Dell, Ford and other large companies have their own problems. Imagine the problems a smaller businesses could face in navigating manufacturing operations with a small staff.
SAP, UPS and other companies have solutions to help smaller businesses do MUCH more with less.
Fortune Small Business writes Once upon a time it was easy to tell the difference between a small business and a large competitor: Big firms had access to more capital, diverse markets, better technology, and economies of scale; small companies had to make do with whatever they could afford. But as technology has advanced, that distinction has blurred. Just as mainframe computers gave way to cheap PCs on every desk, Yellow Pages ads are being replaced by low-cost websites, and regional sales forces by search terms purchased from Google and Yahoo. Harvard Business School professor Clayton Christensen cites overnight shipping as another of history’s great leveler, giving smaller manufacturers the ability to send parts across the globe in less than a day and robbing big firms of a competitive advantage.
The past couple of years have ushered in a new wave of tools for entrepreneurs who want to play big, as software and service providers have begun to adapt their offerings-previously available only to large firms-for small businesses. “The attitude used to be, ‘We’re going to take this product we have for enterprise, strip out a lot of functionality, and small business is going to have to use it,'” says Chris Hazelton, senior analyst at IDC, an IT market-research firm based in Framingham, Mass. “Now companies are either building products specifically for small business or making the products modular so they’re lower-priced and scalable.”
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