Competitive Edge - Does the size of the business matter?

In business, there tends to be a belief that size matters. Did you know that often small and medium-sized enterprises (SMEs) have a competitive edge over larger corporations? Here’s why small fry are sometimes better than big fish.

Tailored customer service;

SMEs can provide more tailored customer service and faster response as they have a more personalised client base than large corporations. The weakness of large corporations is that it’s more difficult to reach the person you want to talk to due to the number of staff and contact numbers involved.

Direct contact;

When you work with SME you usually have direct contact with the person you need, there being fewer team members involved.

Excellent customer experience;

SMEs often do their best to provide excellent customer experience, driven by providing a positive and inclusive atmosphere at work for the staff. In large corporations, customer experience isn’t always the top priority as they tend to be more profit and investor focused than customer-centric. With more employees, communication tends to be minimal in the larger organisation.

One family;

When you do business with SMEs you notice often a strong bond between every member of the company. Communication works better and customers are often welcomed and treated as a member of the family. With large corporations it’s different; with high staff turnover, more personal and more departments, communication can be compromised. Beating competition is a priority but sometimes it can be at the customers' expense.

Reliability;

SMEs are often able to stay on schedule and deliver exactly what you need while ensuring everything goes well. In large corporations, the communication difficulties can lead to misinformation, delays and confusion.  

Feedback;

This is a classic example where SMEs often pull the long straw. Feedback is taken seriously, and action is taken accordingly; customer satisfaction is critical for SMEs due to lower customer numbers. Large corporations don’t often react or answer to feedback effectively and they avoid publishing negative feedback as their main competitors are always right around the corner waiting to strike.

Large corporations have the size and brand, but SMEs have customer experience, quality and that personal touch backing them in competition. Now using SMEs is becoming more popular as it gives you a chance to support local businesses and communities.  It's more important to choose your service providers carefully, ensuring you have the right working relationships to help you move forward.

Do you prefer working with an SME or a large corporation? How do you choose which one you associate with? I’d love to hear your thoughts and experiences.

Jo Ferreday is the Managing Director of Sheer Edge and co-founder of Inspiring Dining. With nearly two decades of experience in corporate hospitality and events industry, she is committed to providing excellent customer experience through her services. Finding the perfect venue and creating a unique experience is her priority.