Saturday, 23 September 2017

Information and commentary for the small business banking industry

Is global the new local?

Small and medium sized businesses have been making fundamental changes to their business models over the past few years, in order to cater for global demand. This has called for a change of mindset from many small business owners – to make ‘global’ the new local.

Taking on larger companies

With enhancements in technology such as apps, the cloud and social media, smaller businesses are finding ways that they can compete (and better) the efforts of corporate giants, to reach a worldwide audience.

To take on the big boys, SME’s have had to become more:

  • Efficient – by investing in the right operational technology.
  • Adaptable to change – in order to offer the services customers want as times change.
  • Partner oriented – by forming relationships with overseas suppliers or sellers, to access some foreign markets.

A majority of SME owners think that technology can help their businesses achieve sustainable growth and longevity.

Embracing mobile technology

Globalization, technology and transformation will be the characteristics of SMEs in the years ahead, which is why getting on board with what mobile technology has to offer is an absolute must.

Consumers and businesses can now connect across the Internet like never before, at any time of night or day, and from almost anywhere on the globe. The opportunities are endless for building a competitive advantage for your small business based around mobile technology.

One example is push notifications – like when a restaurant or bar uses their app on their customers’ mobile devices to ‘push’ through some new information, such as a discount on drinks during certain days of the week.

Increasing international revenue

It’s inevitable that SMEs will begin to see an increase in revenue generation outside of their home countries – and this has to be a positive. The business landscape is changing to one where fewer and fewer small businesses are only operating in their own country.

These shifts in direction are being driven by:

  • Necessity – the need to compete against other global players who may be invading their home markets.
  • Opportunity – the prospect of increasing business and wealth through the global marketplace.

Global competition is undoubtedly one of the trends having the greatest impact on small and medium sized businesses today.

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