3.2.4 Reasons for staying small

Question 1

Product differentiation

Answer 1

• Product differentiation and unique selling points (USPs) can allow small businesses to survive and compete with larger organisations.
• Small businesses can use their expert knowledge of local markets to offer differentiated products and products with USPs.

Question 2

Flexibility

Answer 2

-able to respond to changing customer needs and demands by staying flexible

Question 3

Customer service

Answer 3

-Small businesses can rely on their quality of customer service to attract customers and maintain market share when competing against larger organisations who are often unable to offer tailored customer service.

Question 4

E-commerce

Answer 4

E-commerce can be used to support small businesses by providing access to much larger national and global networks of customers.