AS the drive to curb competition in this dynamic environment continues, Small and Medium sized Enterprises (SMEs)are increasingly becoming more resilient to keep up with the pace as pressure mounts.
Today’s article reminds us how diverse combined skills set and talent can provoke innovation and success in a competitive environment.
Young entrepreneurs are more creative and have great ideas for business and as such they have the capabilities to create a sustainable business environment. Operating in a dynamic environment is the most challenging aspect in business today as competition is becoming more prevalent among small enterprises.
As they join forces in working towards achieving a common goal, they slowly build their businesses and emerge from small to medium and eventually to large enterprises over time competing with established ones who tend to be the major threats.
Survival of small enterprises requires the integration of many different perspectives rather than operating entirely in isolation.
The idea behind the aggregation of diverse skills set, talent and other capabilities is to reduce the risk aspect of failing and strengthening the businesses to meet the gaps that are identified to maintain a competitive advantage even when hit by rivalry, new entrants substitutes and other economic factors that threaten small businesses.
While large firms are focusing on competing with firms on the same level, as they undermine the small enterprises, SMEs are slowly gaining momentum to beat all odds.
This is happening today where a small business start from the scratch but with time emerge as a medium or large company through the integration of other combined forces such as aggregation of finances to start a business, different skills set, talent and a variety of innovative ideas which stem into something big.
The supply and value chains drive many small businesses to success as they act as a conduit to business operations. Similarly, diverse linkages are fundamental in times of trouble in business when relationships are established.
Apart from the points highlighted above, diversity is helpful in the exchange of knowledge and ideas which ultimately unleash greater innovative ideas.
Anyone wishing to start a business must consider the importance of networking and joining clubs and associations in line with the business they wish to engage in to learn more and receive support from others who may be experienced.
A support system in any area of business is critical.
On the other hand, large companies that feel threatened by the resilience of small enterprises are now soughing ways of working together with the small ones to tap into their small market which comprises of mass market such as rural and high-density areas, provided a mutual understanding of how they share a cake, is made clear from the onset.
Soon, as we see increasing SMEs emerging, there is likelihood that competition will be reduced as the initiatives to work together increase.
This will enable small businesses to be enhanced in terms of capability and develop longer term sustainability.
This response automatically creates a fair share rather than a win lose situation. However, we must bear in mind that competition cannot completely be ruled out.
Without competition, there would be laxity and lack of improvement in the business arena and little emphasis on innovation.
The digital space is the most significant area where more innovation is gaining momentum. A lot of changes around digitization is taking place rapidly so is customer perception changing in tandem to the changes.
As the environment is changing, great initiatives must be sought to bring improvements that will tap into developing markets which are currently the most targeted.
To thrive in a competitive environment today requires strong key support systems such as technology to remain in business.
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The Author is a seasoned banker, has a Bachelor of Arts, honours degree in Business management/a Master of Business Administration from University of Sunderland (UK) and has a Doctorate in Business Administration from the Atlantic International University, United States of America (USA).