The growing competition with rivals and decrease in customers are forcing small businesses to
turn their attention to reduce their cost of operation. According to a survey by Swiss based
insurance company Zurich Insurance Group 44% of small businesses believe cost cutting is the most
important concern businesses should take the opportunity to solve.
What Opportunities Exist For American Small Businesses?
Besides cost cutting small businesses are putting their focus on finding new target customer
base and sales mediums which according to a PDF report “Biggest Opportunities for Small and
Medium Enterprises (SMEs) in 2016” from the survey taken from 2600 small businesses around the
world make up 36% and 33% respectively of the number of concerns small and medium
enterprises have. American business surprisingly have better opportunities to expand on these
sales channels and when compared to their international counterparts they see investment in
foreign markets as providing them with a greater opportunity for growth.
What Risk Exist For Them Also?
Small businesses are growing more conscience of the challenges they have to face now. The
greatest of them being the low consumer demand and the high competition and some risk factors
include vulnerable and inefficient technology. New technology helps businesses improve on a
number of functions from communication to inventory management to supply chains and as
technology progresses businesses would be able to function more quickly and efficiently. Craig
Fundum, Head of Commercial Markets for Zurich North America says
“Advances in technology straddle the line between both risks and opportunities for medium-sized
businesses. In an increasingly sluggish growth environment, they are leaning on technological
improvements to tighten their supply chains, reduce software development, and condense testing
processes,”. Fundum also warns of the risk technology can impose on the success of businesses
saying “At the same time, a reliance on technology opens medium-sized businesses up to cyber-
security concerns and technological failures or glitches that can offset productivity gains.” In the
end businesses are facing more obstacles today then before but with opportunities for growth in
foreign markets and the new technology that is being introduced that might change things for the
This article was heavily sourced and rewritten from https://smallbiztrends.com/2016/11/biggest-opportunities-for-small-and-medium-enterprises.html