What are the economic factors that can make or break a small business?

Según mi experiencia, una peque?a empresa o emprendimiento debe realizar una evaluación de mercado para verificar que su producto o servicio genera valor a las personas o empresas y por valor me refiero a que sus potenciales clientes realmente perciben eso y están dispuesto a desembolsar el precio que se le solicita ya que saben que el valor recibido es mucho mayor a lo que realmente pagan. Pero no podemos quedarnos solamente con la evaluación de mercado (encuestas o entrevistas), sino que dicha evaluación debe ser realizada mostrando un MVP funcional y con el feedback poder validar si efectivamente existirá demanda del producto o servicios.

Market demand is pivotal for the success of a small business during its setup phase for several reasons. Firstly, it validates the viability of the product or service offering, indicating potential customer interest and purchase intent. Understanding market demand also helps in assessing the size and growth potential of the target market, allowing for strategic planning and resource allocation. Moreover, it enables the business to analyze the competitive landscape, differentiate itself, and set competitive prices. Ultimately, market demand serves as a guiding factor, informing key decisions (given the limited working capital at hand) and increasing the likelihood of success in a competitive marketplace.

The level of demand for the products or services offered by the small business is critical. A strong demand can lead to increased sales and revenue, while weak demand can result in sluggish growth or even business failure.

Los factores económicos que pueden influir en una empresa son la inflación, la tasa de interés, el crecimiento económico, la demanda, la recesión y por último el tipo de cambio. Hay muchos otros factores pero en mi opinión estos son los más importantes

Es importante entender que la demanda del mercado es crucial para el éxito de una peque?a empresa, dependiendo de las preferencias y necesidades de los consumidores, así como de la competencia y precios de productos similares. Adaptarse a los cambios en el mercado y ofrecer una propuesta de valor única son fundamentales para sobrevivir y crecer. La capacidad de anticipar y satisfacer las necesidades del mercado asegura la viabilidad a largo plazo. Recopilar retroalimentación y datos del cliente es esencial para mantenerse competitivo en un entorno empresarial dinámico.

La competencia y la fijación de precios son aspectos cruciales que influyen en la viabilidad y el éxito de una peque?a empresa. La evaluación y comprensión de la competencia en el mercado son fundamentales para identificar oportunidades y amenazas, así como para desarrollar estrategias efectivas para diferenciarse y destacar en un entorno competitivo.La capacidad de una peque?a empresa para ofrecer un valor único y relevante a sus clientes, ya sea a través de la calidad, el servicio, la innovación o la especialización en un nicho, puede ser fundamental para establecer una ventaja competitiva sólida. Esta ventaja competitiva no solo puede ayudar a la empresa a atraer y retener clientes.

Competition and pricing are important factors that affect the viability and success of a small business. It is crucial to assess and understand the competition in the marketplace to identify opportunities and threats, and to develop effective strategies to differentiate and stand out in a competitive environment. The capacity of a small enterprise to provide distinctive and pertinent value to its clientele, whether through quality, service, innovation or niche specialisation, can be crucial in establishing a robust competitive advantage. This advantage can not only aid in attracting and retaining customers, but also in achieving long-term success.

Según mi experiencia, la ventaja competitiva es lo que hace sostenible a los negocios en primera instancia (consideremos competitividad a todo nivel: calidad, rapidez en la entrega o distribución, relación con proveedores, personal y finanzas). Como menciona Porter en su libro Ventaja competitiva, por lo general los nuevos negocios se enfocan en competitividad en costos y competitividad en valor diferencial, siendo este el más complejo de ambos y como ejemplo se tiene a la empresa Apple. Es así, que es menester que los founders interioricen la relación entre su propuesta de valor (y el precio ofrecido) y la aceptación de sus early adopters.

The competitive environment within the industry can influence the success of a small business. Factors such as the number and strength of competitors, pricing strategies, and barriers to entry can impact market share and profitability.

I believe this is the most critical factor for a small business. Entry of a large player in a fragmented industry can suddenly disrupt the dynamics, making it unviable for the small business to continue. E.g. In India, entry of Reliance Jio proved to be a death blow for numerous smaller players that had come in last 10yrs. That happened because of the.extremely low pricing of Jio, enabled by large infra investments and long term horizon.

Infelizmente a carga tributária em alguns países dificultam a empresa a se locomover de maneira consistente, em muitos casos o que leva o encarecimento do negócio e até se tornando inviável. é importante ressaltar que planejamento é fundamental nestes casos onde, para n?o ter surpresas, um bom Business plan, já fará boa diferen?a, onde todos os impostos podem ser diluídos nos produtos de forma que n?o sobrecarregue o faturamento da empresa.

A business can identify the market demand of its product and act accordingly. It can also identify the competitors and have a close look on their business strategies and accordingly set its own business strategies. Businesses might also have adequate knowledge about pricing strategies to compete in this competitive business world. Most importantly small businesses struggle with government policies and tax regulation of the country. In tiger economies, small businesses play a very crucial role in the economic development. Indeed, government regulations regarding small business and taxes can build a the strong structure in the economy for small businesses or create a very hard competitive situation for these small businesses.

Government regulations, taxes, and compliance requirements can create burdens for small businesses. Complex regulations or changes in legislation can increase administrative costs and regulatory compliance burdens, affecting profitability and growth opportunities.

Different countries have different tax brackets, rules & regulations, and compliances that can create an environment of sticking to those things as the implications arrive after the compilation of Revenue to PAT if the government is supportive of the business in their country and makes easy rules & regulations compared to complex ones.

Management needs to be vital to make accurate and simple decisions in critical situations. The company only grows when the management board makes the right decisions at the right time. Creating a culture in the business helps employees to succeed, as the industry is for the people and the people. Strong management increases the performance and profitability of the company, and from experience, it makes more business growth.

Access to financing is crucial for small businesses to fund startup costs, operations, and expansion efforts. Factors such as interest rates, lending requirements, and availability of capital from banks, investors, or government programs can impact a small business's ability to obtain funding.

é importante estar atento as mudan?as tecnológicas por exemplo, pois a inova??o nos tempos de hoje gira em torno da tecnologia, ou seja, uma micro empresa que n?o acompanhar as novas tendências tecnológicas possivelmente n?o durará muito, hoje vemos a era dos Dados tomando conta dos mercados, as empresas que n?o estiverem preparadas para isso ficaram para trás consequentemente a estagna??o do negócio.

Small businesses can distinguish themselves and attract customers by offering distinctive solutions. This involves understanding customer needs through conversations or surveys to create products or services that genuinely meet those needs while adding unique features, enhancing quality, or incorporating environmentally friendly practices. Staying updated with the latest technology relevant to the industry can streamline processes and improve customer experiences. Encouraging employees to share ideas fosters a culture of innovation, with recognition and rewards motivating them to actively contribute. It is essential for small businesses to be flexible and open to consistent improvements in order to maintain competitive advantage.

For small businesses, a critical metric is cash flows. Their very survival depends on it. Availability of low cost capital is big enabler, but over dependence on it can prove very costly.