Small businesses often find it tough to compete in a big global market. Here’s why they struggle:
Limited Resources: Small businesses usually have smaller budgets and fewer tools to work with. This makes it hard for them to spend money on things like advertising or new technology, which are important for competing worldwide.
Brand Recognition: Big well-known companies can easily outshine small businesses. For example, a local coffee shop may have a hard time competing with big chains like Starbucks, which have a lot of money to spend on advertising.
Economies of Scale: Large companies can produce items in bulk, which helps them lower their costs and sell at cheaper prices. This makes it difficult for local businesses to compete when a big company can offer similar products for less money.
In short, while globalization creates some new chances, it also makes competition tougher. This often puts small businesses in a more difficult spot, making it hard for them to keep up.
Small businesses often find it tough to compete in a big global market. Here’s why they struggle:
Limited Resources: Small businesses usually have smaller budgets and fewer tools to work with. This makes it hard for them to spend money on things like advertising or new technology, which are important for competing worldwide.
Brand Recognition: Big well-known companies can easily outshine small businesses. For example, a local coffee shop may have a hard time competing with big chains like Starbucks, which have a lot of money to spend on advertising.
Economies of Scale: Large companies can produce items in bulk, which helps them lower their costs and sell at cheaper prices. This makes it difficult for local businesses to compete when a big company can offer similar products for less money.
In short, while globalization creates some new chances, it also makes competition tougher. This often puts small businesses in a more difficult spot, making it hard for them to keep up.