The role of small businesses as part of the industrial structure in some industries
What industries are characterized by a large number of small businesses?
Industries such as retail, food services, professional services (e.g., consulting, legal, accounting), construction, personal care, and creative arts often have a large number of small businesses. These sectors are typically diverse, customer-focused, and can be started with relatively low entry barriers.
How do small businesses compete with larger corporations in these industries?
Small businesses compete with larger corporations by focusing on niche markets, providing personalized customer service, leveraging agility and flexibility, fostering strong relationships with customers, and offering unique products or services that differentiate them from larger competitors.